Ordinary level 2026 BAEBOC Economics 2

This seventh image adds more Economics questions, specifically covering banking (BEAC), international trade, classification of goods, and economic development.

---

QUESTION 1

• a) Distinguish between Assets and Liabilities of a Commercial Bank. (4marks)

• b) Explain four (4) functions performed by BEAC to the economy of member countries. (8marks)

• c) State and Explain problems encountered by Commercial Banks in Cameroon. (8marks)

---

QUESTION 2

• a) Differentiate between the following concepts as used in Economics:

  • i) Devaluation and Revaluation. (4marks)

  • ii) Balance of Trade (BOT) and Balance of Payment (BOP). (4marks)

• b) Explain three (3) factors that do encourage the development of trade among countries. (6marks)

• c) i) State three methods of trade restrictions. (3marks)

  • ii) Outline three (3) reasons for the increase in custom duties in Cameroon. (3marks)

---

QUESTION 3

• a) Define the following terms with an example in each case:

  • i) Wealth

  • ii) Fixed costs

  • iii) Variable costs

  • iv) Specific factors of production

    (8marks total)

• b) The following are examples of goods and services: Law and order, Education, Health care, CRTV News, Sea water, Sunshine, Street lights, water supply, Electricity, High ways, Sand in the desert, Ice crystals.

  • Use a table to classify the above into public goods, free goods and merit goods. (6marks)

• c) State and explain three limitations to geographical mobility of labour in Cameroon. (6marks)

---

QUESTION 4

• a) Define the following:

  • i) Monopoly power

  • ii) Complementary Demand

  • iii) Competitive Demand

    (6marks total)

• b) The question is based on the Demand and Supply schedule for Rice:

Unit prices (FCFA)	Quantity Demanded (kg)	Quantity supplied (kg)
100	125	20
200	100	50
300	75	75
400	50	80
500	25	150

• i) Calculate Price Elasticity of Demand when price changes from 400 FRS to 200 FRS. (2marks)

• ii) If the government fixed the price at 500 FRS how much will it costs the government? (2marks)

• iii) What name is given to this price? (1mark)

• c) State and explain three factors that affects the supply of fresh tomatoes in urban markets. (6marks)

• d) State three factors that affects price Elasticity of demand. (3marks)

---

QUESTION 5

• a) State and explain four (4) reasons for government’s intervention in economic activities in Cameroon. (8marks)

• b) Classify the following policies by government into direct and indirect intervention: Price control, Monetary policy, Wage legislation, Weight and measures, Fiscal policy, Consumer protection.

• c) State and explain three (3) types of unemployment with an example in each case. (6marks)

---

QUESTION 6

• a) Define the following concepts:

  • i) Economic Growth

  • ii) Economic Development

    (8marks total)

• b) Explain four (4) factors that hinders the rate of economic development in Cameroon. (8marks)

• c) Outline four (4) characteristics of underdevelopment. (4marks)

---

Since you’re managing quite a few of these, would you like me to help you create a “Bank” of all the calculation questions from these images so you can easily compare the different Price Elasticity and Market Equilibrium scenarios?