Ordinary level 2025 South West mock Economics 2

Document Title: SOUTH WEST REGIONAL MOCK EXAMINATION GENERAL/TECHNICAL AND VOCATIONAL EDUCATION

Subject Title: ECONOMICS

Paper Number: 2

Subject Code Number: 0525

Level: ITVE / ORDINARY LEVEL

Time Allowed: Two hours Thirty minutes

Instructions to Candidates:

• This paper carries 8 questions. Answer any FIVE questions.
• Each question carries 20 marks. For your guidance, the approximate mark for each part of a question is indicated in brackets.
• If you answer MORE THAN FIVE questions, ONLY the first FIVE answers presented will be marked.
• You must use ONLY Blue or Black ink. No answer in pencil will be marked.
• You are reminded of the necessity for good English and orderly presentation in your answers.
• You are advised to read carefully through the question paper before you begin your answers.

Question 1:

• a) Use a table to classify the following enterprises into Unincorporated, Incorporated and Public sector business units:
  • Public limited companies
  • Sole proprietorship
  • Public corporations
  • Partnership
  • Municipal undertakings
  • Private limited companies (6 marks)
• b) State and explain three roles played by cooperative societies in Cameroon (8 marks)
• c) State and explain four reasons for Privatisation in Cameroon (6 marks)

Question 2:

• a) Define the following types of economic Systems:
  • i. Capitalist economic system
  • ii. Command economic system
  • iii. Mixed economic system (6 marks)
• b) State and explain four differences between the capitalist and planned economic systems. (8marks)
• c) Explain three roles of the government in a mixed economic system. (6 marks)

Question 3:

• a) Distinguish between location and localization of industries. (4 marks)
• b) State and explain two advantages and two disadvantages of localization. (8 marks)
• c) Explain four factors influencing the location of industries in Cameroon. (8 marks)

Question 4:

• The table below shows data of a country’s balance of payments for a given year.
• a) Distinguish between Balance of trade and balance of payments. (6 marks)
• b) Calculate:
  • i. Balance of trade. (3 marks)
  • ii. Current account balance. (4 marks)
  • iii. Balance of payments. (1 mark)
• c) Explain three first-aid measures used to correct a deficit on the BOP (6marks)

Table:

• | Items | Figure in million FCFA | | — | — | | Import of cars and smart phones | 60 | | Invisible export | 55 | | Export of Timber and cotton | 75 | | Invisible import | 40 | | Capital account balance | 20 | | Balancing item | 5 |

Question 5:

• The Table below shows the market demand and supply schedule for corn in a given market.
• a) Complete the table. (6 marks)
• b) What is the market price and why? (4 marks)
• c) Calculate price elasticity of supply when price increases from 300FCFA to 500FCFA. (4 marks)
• d) State and explain two reasons why the market quantity demanded decreases as price increases. (6 marks)

Table:

• | Price (FCFA) | Buyer 1 | Buyer 2 | Seller 1 | Seller 2 | Market demand (Kg) | Market supply (Kg) | | — | — | — | — | — | — | — | | 100 | 50 | 40 | 15 | 5 | | | | 200 | 35 | 45 | 20 | 30 | | | | 300 | 30 | 40 | 30 | 40 | | | | 400 | 27 | 23 | 35 | 45 | | | | 500 | 25 | 15 | 50 | 50 | | | | 600 | 20 | 10 | 53 | 57 | | |

Question 6:

• a). Define the following as used in economics:
  • i. Economic Planning.
  • ii. Economic Growth.
  • iii. Economic development. (2+2+2 marks)
• b) State and explain Four possible causes of economic growth in Cameroon. (8 marks)

Question 7:

• a) Distinguish between the following:
  • i. Budget surplus and budget deficit.
  • ii. Reproductive and Deadweight Debt.
  • iii. Progressive and regressive tax systems. (4+4+4 marks)
• c) state and explain four possible remedies of unemployment in Cameroon. (8 marks)

Question 8:

• a) Distinguish between demand-pull Inflation and cost-push inflation. (6 marks)
• b) Explain three causes of demand-pull inflation. (8 marks)
• c) State and explain:
  • i. Three determinants of national income.
  • ii. Two uses of national income statistics. (6 marks)