READ CAREFULLY AND ANSWER THE FOLLOWING QUESTIONS
SECTION A
- a) Why do we study Economics? 8mks
b) How is scarcity related to opportunity cost? 12mks - a) With the aids of a well labelled diagram, explain how price mechanism functions. 10mks
b) What are the disadvantages of price mechanism in the allocation of semi-finished and finished goods and services? 10mks - a) Identify and explain the main features of an oligopolistic market. 10mks
b) Distinguish between total revenue and marginal revenue and explain the relationship between these two concepts. 10mks - a) Define profits and show how it is different from other factor incomes.12mks
b) What are the functions of abnormal profits in a market economy? 8mks
SECTION B
- a) Explain why National Income equal National output equal National Expenditures. 12mks
b) Discuss the factors that influence the size of a nation's national income. 8mks - a) How do government control money supply in an economy? 10mks
b) What are the components for the demand for money? 10mks - a) Make a succinct difference between a " budget surplus" and a "budget deficit". 10mks
b) Discuss the various options that are available to the government of Cameroon in reducing the national debt. 10mks - a) Make a difference between absolute cost advantage and comparative cost advantage. 12mks
b) Explain why most less developed countries have found it very difficult to grow. 8mks