📘 GCE ORDINARY LEVEL – ECONOMICS MOCK EXAM Time: 2 Hours Instructions: Answer all questions. Show clear…

Question

📘 GCE ORDINARY LEVEL – ECONOMICS MOCK EXAM Time: 2 Hours Instructions: Answer all questions. Show clear explanations where required. Question 1 (20 marks) Distinguish between the following: (6 marks) i. Scarcity and shortage (2 marks) ii. Wants and needs (2 marks) iii. Economy and economic system (2 marks) State four advantages of a capitalist economic system. (8 marks) Explain two disadvantages of a capitalist economic system. (6 marks) Question 2 (20 marks) Distinguish between: (4 marks) i. Mobility of labour ii. Efficiency of labour Explain four ways by which the efficiency of labour can be increased. (8 marks) State four advantages of division of labour. (8 marks) Question 3 (20 marks) Define national income. (4 marks) State and explain three factors that determine the size of a country’s national income. (6 marks) Outline five problems faced by the agricultural sector in Cameroon. (5 marks) Outline five problems faced by the industrial sector in Cameroon. (5 marks) Question 4 (20 marks) Define the following: (8 marks) i. Frictional unemployment ii. Structural unemployment iii. Seasonal unemployment iv. Residual unemployment State and explain two types of government budget. (6 marks) State three sources of government revenue. (6 marks) Question 5 (20 marks) Define trade. (4 marks) State four advantages of international trade. (8 marks) Explain four methods of trade restriction. (8 marks) Question 6 (20 marks) What is overpopulation? (4 marks) State four measures to control population growth. (8 marks) Define migration. (4 marks) State four negative reasons for migration. (4 marks) ✅ Total: 120 marks

ScanSolve AI Tutor · Accepted Answer

Let's tackle Question 1 (a) (i) from your Economics mock exam.

i. Scarcity and shortage

Scarcity refers to the fundamental economic problem of having unlimited human wants and needs in a world of limited resources. It is a universal and permanent condition that forces societies to make choices about how to allocate resources.
Shortage occurs when the quantity demanded for a good or service exceeds the quantity supplied at a particular price. It is a temporary market condition, often caused by price controls or sudden increases in demand, and can be resolved by price adjustments or increased supply.

The key distinctions are:

Scarcity is a permanent, fundamental condition of limited resources relative to unlimited wants, while shortage is a temporary market imbalance where demand outstrips supply at a specific price.
Scarcity cannot be eliminated, but shortages can be resolved through market mechanisms or policy changes.

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