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SECTION B: MACRO ECONOMICS

MEGA ONLINE SCHOOL ARTS

ECONOMICS A'L

LITTORAL MOCK 2025

LESSON

SECTION B: MACRO ECONOMICS

7a) What is meant by the term discretionary fiscal policy? (10mrks)

b] Under what conditions will the national debt be a burden to the economy?(10mrks)

Solution

Fiscal policy refers to policies used by the government to control economic activities in a country or economy by the use of taxes and subsidies.

Or

Fiscal policy is the manipulation of government income and expenditures to influence the level of economic activity. The major instrument of fiscal policy is called budget.

Discretionary fiscal policy refers to deliberate changes in government spending or taxation to influence the overall levels of economic activities..The changes made by the government to achieve specific economic objectives or to control economic growth and development, reduce unemployment rate, ensure balance regional development etc

•To promote economic growth and development the government can reduce taxes and grant tax holidays to newly established industries inorder to encourage foreign investment.

•To raise standard of living of citizens the government reduces trade barriers inorder to imports varieties of products

•To reduce unemployment rate, the government grant unemployment benefits and grant subsidies to firms to reduce their cost of production inorder to boost outputs and profits

•To control inflation, the government devaluate the currency of a country inorder to make exports cheaper and reduce imports

•To promote regional equality the government can charge high taxes on industries located in cities and little or no taxes to industries located in rural areas this helps to create employment opportunities and reduce rural exodus.

b) National debt refers to the accumulation of all total government borrowings within and out of a country over a period of time say one year. National debt backed by real assets to carryout development projects a

SECTION B: MACRO ECONOMICS

MEGA ONLINE SCHOOL ARTS

ECONOMICS A'L

LITTORAL MOCK 2025

LESSON

SECTION B: MACRO ECONOMICS

6a) What functiona does money perform in an economy?(12mrks)

b] Giving examples distinguish between near money and money substitutes (8mrks)

Solution

6a) Money refers to anything generally acceptable for the purchase of goods and services and settlement of debt. Money which is generally acceptable by the population is described as Legal tender. For example in Cameroon FCFA is a legal tender as well in CEMAC member countries as Gabon, Chad, Equatorial Guinea, Congo and Central African Republic. It perfoms the following functions

1] It serves as a medium of exchange because money is used to purchase or buy goods and services and settle debts. This is the most important function of money

2] It acts as a store of value. Properties can be bought and stored inorder to later resell in the future when the value appreciate or increases. For example Land, estates, companies, stadium etc

3) It serves as a standard of deferred payment. Deferred payment is the ability of a buyer to collect products uncredit inorder to pay in the future when money is available. This makes borrowing possible with money

4] It serves as a unit of account. Money expresses the value of a product to be either high or low value base on their prices. An expensive product is having high price while a cheap product is having low value

5] It is used to pay workers wages or salaries after a work done

B] Near money refers to any liquid assets that act as a store of value but cannot be used as medium of exchange. For example government bonds, treasury bills and short term bills having 91 days to maturity. These assets can easily be converted into money hence they are also called Quasi money.

While

Substitute money refers to anything which act as medium of exchange but not as a store of value. For example credit cards and cheques. They can be used by people to pay fo

Merry Christmas 🎄

GEOGRAPHY

MCQ

1] A portion of land close to the Sea is called?

A] Bay
B] Wave cut platform
C] Cape
D] Coast

Answer = D

2] All the following are towns located within the coastline of Cameroon except:

A] Kribi
B] Limbe
C] Kumba
D] Campo

Answer= C

3] All are problems or challenges faced around coastal areas except

A] Soil fertility
B] Flooding
C] Saltation
D] Collapse or fall of cliffs

Answer= A

4] The up and down movement of water 💦 caused by winds blowing over the sea or ocean surface is called?

A] Tides
B] Currents
C] Seismicity
D] Waves

Answer = D

5] The highest point of a sea 🌊 wave is called

A] Trough
B] Wave height
C] Crest
D] Wave length

Answer = C

6] The movement of sea water 💦 from the sea towards the coast is described as

A] Headland
B] Backwash
C] Swash
D] Cliff

Answer= C

7] There are how many types of sea waves?

A] 4
B] 2
C] 3
D] 5

Answer= B

Tutor ENOW MARTIN EGBE

Mega online school arts.

677941606 / 683858779

MAP READING

PRACTICAL

TUTOR ENOW MARTIN EGBE

LESSON

1] A hypothetical map with scale 1:50,000 is having a map length 14cm, map width 8cm, grid references spacing of 2cm.Reduce the map and insert the following features

I] Triangular pillar (315212)
II] Market (305225)
III] Church (327236)
IV] Hospital (336238)

Eastings starts from 30 and above
Northing starts from 20 and above

prepare your key .

SOLUTION

Map length= 14cm
Reduced map length= 14cm÷2=7cm

Map width= 8cm
Reduced map width= 8cm÷2=4cm

Map grid reference spacing= 2cm
Reduced grid references spacing=2cm÷2=1cm

Map scale = 1:50,000×2
Reduced map scale= 1:100,000

Use the reduced length, width, grid references spacing inorder to draw your reduced map and insert the features appropriately.

2] A hypothetical map with scale 1:50,000 is having a football field with complete square 12 and incomplete square of 21. Calculate the area of the pitch on the ground or earth surface (3mrks)

Solution

Map scale= 1:50,000
Complete square= 12
Incomplete square= 21/2
Adjusted square= 10.5

Total number of squares= Complete+incomplete

= 12+10.5

Total number of squares= 22.5

Area (km²)= Map area (cm²)×map scale/100,000 × map scale/ 100,000

= 22.5×50,000/100,000 × 50,000/100,000
= 22.5 × ¼
= 22.5/4

Area (km²)= 5.63km²

3] A hypothetical map with scale 1:75,000 is having a railway line line distance 12cm. calculate the ground distance of the railway (2mrks)

Solution

Map scale= 1:75,000
Rail distance= 12cm

Ground distance (km)= Map distance × map scale/100,000
= 12 × 75000/100,000
= 12× 0.75

Distance (km)= 9km

TUTOR ENOW MARTIN EGBE

BONABERI DOUALA

683858779.

2a. What is the theory of Sea floor spreading (5mrks)

This was the second theory on crustal motion called Sea floor spreading theory which stated that

*"the oceanic crust or SIMA is slowly moving away from a mountain ridge known as mid-oceanic oceanic ridge found at the center of some oceans by magma being ejected or injected from below towards the surface"*

According to sea floor spreading theory new light continental crust or SIAL are added or added to the dense oceanic crust at the mid-oceanic ridge while other older oceanic crust are being destroyed by raising magma after sliding or descending back into the mantle at the deep sea trenches near the edges of continental and oceanic plates or continental/continental plates.

Old oceanic plates are destroyed in the mantle at the deep sea trenches inorder to form magma, which rises and solidifies towards the surface to form new continental crust.

b. Examine the causes of sea floor spreading and evidences (15mrks)

Firstly *Mid - oceanic volcanic eruption* is one of the cause of sea floor spreading. This is the *major cause of movement of the oceanic crust or SIMA* according to Harry Hess because the oceanic crust lays on the Asthenosphere it's subjected to move towards any direction due to influence of sub crustal convectional currents or thermal conversational current in the mantle. This cause the dense oceanic crust to sink and destroy in the mantle to form a *V-shape feature* called *deep sea trenches*

Despite the spreading of the sea, the earth surface is not increasing nor expanding because as old oceanic crust are destroyed new oceanic crust are created hence the earth surface is neither increasing nor reducing in size.

It is a theory having the following strength of evidences.

The following serves as proofs or evidences the oceanic crust or SIMA is moving. They include:

Firstly*The age of rocks increases as distance away from the mid Oceanic ridge Increases*.

Rocks are younger towards the mid-

PAPER TWO ON BUSINESS UNITS

INSTRUCTIONS: ANSWER ALL QUESTIONS

1a] Define the following terms (2×5=10mrks)

I] Sole proprietorship
II] Joint stock company
III] Partnership
IV] Prospectus
V] Certificate of trading

b] State and explain any five advantages of Partnership over sole proprietorship (10mrks)

2a] Distinguish between private limited companies and Public limited companies (10mrks)

b] State any five sources of finance of partnership (5mrks)

c] State any five disadvantages of sole trading business (5mrks)

3a) State any five items found in the deed of partnership (5mrks)

b] Distinguish between the following (2+2=4mrks)

I] Ordinary partners and Quasi partners
II] Certificate of trading and certificate of incorporation

c] State and explain any four advantages and disadvantages of limited liability companies (4×2=8mrks)

d] State any three advantages of a sole proprietorship form of business (3mrks)

4a] Distinguish between the following (3×3=9mrks)

I] Incorporated and unincorporated business
II] Public and private enterprises
III] Sole proprietorship and partnership

b] State any four source of finance of a partnership (4mrks)

c] Explain any four disadvantages of partnership (4mrks)

d] Differentiate between limited liability and unlimited liability (4mrks).

TUTOR ENOW MARTIN EGBE

MEGA ONLINE SCHOOL ARTS

BUSINESS UNITS

677941606/683858779

2a] Define the following terms (2×6= 12mrks)

I] Material wants
II] Immaterial wants
III] Labour
IV] Division of labour
V] Direct production
VI] Indirect production

b] Distinguish between direct and indirect production (4mrks)

c] State any two advantages and disadvantages of division of labour (2×2=4mrks)

d] State any two limitations of division of labour (2mrks)

SOLUTION

2a] Define the following terms (2×6= 12mrks)

I] Material wants: These are human needs that can be seen, touch and gives satisfaction after consumption. They can be seen hence are described as Tangible for example 🍞 Bread, Oil, Furnitures etc

II] Immaterial wants These are human needs that cannot be seen nor touch but gives satisfaction after consumption. They cannot be seen hence are described as intangible for example Education, healthcare

III] Labour : This refers to any form of human efforts either mental or physical, skilled or unskilled used in the production process of goods and services.

IV] Division of labour : Division of labour is the splitting of the production process into different tasks inorder to encourage others to take part in each task of production.

V] Direct production: This is the creation of products to satisfy the needs of the owner and his family. For example a farmer practicing subsistence farming cultivates food crops for himself and family for consumption.

VI] Indirect production: This is the creation of products to satisfy the needs of those buying them. All production output is meant for sales falls under indirect production because it helps to bring revenue to producers or manufacturers

b] Distinguish between direct and indirect production (4mrks)

Direct production refers to the creation of products to satisfy the needs of the owner and his family. For example a farmer practicing subsistence farming cultivates food crops for himself and family for consumption

while

indirect production refers to the creation of products to satisfy the needs

MEGA ONLINE SCHOOL ARTS

ECONOMICS

EXERCISE 2

MONEY CONCEPT

PAPER 1

11] A type of inflation where prices of outputs increase but the quality reduces is called

A] Hidden or implicit inflation
B] Creeping inflation
C] Hyper inflation
D] Stagflation

12] A type of inflation in which the general prices of outputs is increasing at a very slow rate is known as?

A] Stagflation
B] Creeping inflation
C] Suppressed inflation
D] Slumpflation

13] A type of inflation where prices of goods and services rises uncontrollably is called?

A] Slumpflation
B] Hyper inflation
C] Implicit or hidden inflation
D] Creeping inflation

Note. Hyper inflation is also called Runaway inflation or Galloping inflation

14] During inflation who gains?

A] Creditors
B] government
C] individuals
D] debtors

15] During inflation who loses?

A] individuals
B] government
C] debtors
D] creditors

16] The persistent or continuous fall in the prices of goods and services is called

A] Inflation
B] Buyer inflation
C] Deflation
D] Seller inflation

17] What happens to the value of money during inflation?

A] Fall
B] increase
C] rise
D] constant

18] What happens to the value of money during Deflation?

A] Decrease
B] Constant
C] Low
D] Increase

19] All the following are causes of Deflation except

A] Increase imports and fall in exports
B] Increase taxes on industries
C] Fall in demand and more supply
D] Improvement in technology

20] All the following are positive impacts of Deflation except

A] It increases poverty rate and hardship
B] It leads to BOP Surplus
C] it improves employment opportunities
D] It improves citizens standard of living

Other effects or consequences of Deflation

•It increase income or wages of fixed salary earmers while variable salary earmers surfers

•It makes borrowers or debtors to lose while creditors or lenders gain

•It leads to BOP Surplus due to high exports and low imports

•It leads to raise wages or salaries of wor

PAPER TWO

UNDER MONEY CONCEPT

1a] Define the following terms (2×2=4mrks)

I] Inflation
II] Deflation

b] State and explain any four types of inflations common in a country (8mrks)

c] State any four consequences or impacts of inflation (4mrks)

d] State any four remedies or cure of inflation (4mrks)

2a] Explain the following types of inflations (2×5=10mrks)

I] Buyer inflation or demand pull inflation
II] Seller inflation or cost push inflation
III] Hyper inflation
IV] Implicit or hidden inflation
V] Creeping inflation

b] State and explain any three causes and consequences of inflation (6mrks)

c] State any four effects of Deflation in a country (4mrks)

3a] Study the liquidity preference of a household below and answer the following questions

Transaction motives= 1,200,000frs
Precautionary motives= 700,000frs
Speculative motives= 620,000frs

Calculate (2×3= 6mrks)

I] Active balance
II] Idle balance
III] Demand of money or liquidity preference

b] State and explain any three motives of holding money in cash (8mrks)

c] State and explain any four functions of money (4mrks)

d] State any two drawbacks of the barter system (2mrks)

4a) Differentiate between the following (2×4=8mrks)

I] Convertible banknotes and non convertible banknotes
II] Inflation and Deflation
III] Demand pull inflation and Cost push inflation
IV] Fiat money and Fiduciary money

b] State and explain any five characteristics or features or qualities of money (10mrks)

c] State any two remedy or cure of inflation in your country (2mrks)

TUTOR ENOW MARTIN EGBE

ECONOMICS

MONEY AND BANKING CONCEPTS

677941606/683858779

BONABERI DOUALA

MEGA ONLINE SCHOOL ARTS

MAP READING

PAPER ONE EXERCISES

TUTOR ENOW MARTIN EGBE

1] Conventional signs and symbols representing physical and human features is called?

A] Cardinal point
B] Orientation
C] Title
D] Key or legend

ANSWER=D

2] Which map scale is the largest

A] 1/25000
B] 1:50,000
C] 1/100,000
D] 1;10,000

ANSWER=D

3] A hypothetical map with scale 1/100,000 is having a road with map distance 10cm. What is the ground or earth surface distance?

A] 5km
B] 10km
C] 5cm
D] 15km

Solution

Map scale= 1/100,000
Map distance= 10cm

Ground distance= Map distance (cm) × map scale/100,000

= 10× 100,000/100,000
= 10/1

Ground distance= 10km

ANSWER=B

4] A hypothetical map with scale 1:50,000 is having a plantation with map length of 7cm and width of 4cm. Calculate the ground surface Area of the plantation

A] 9km²
B] 7km²
C] 8km²
D] 14km²

Solution

Length =7cm
Width= 4cm
Area on the map in cm²= Length × width
Area (cm²)= 7cm×4cm
= 28cm²

Area on the ground (km²)= Map area×map scale/100,000 × map scale/100,000

= 28× 50,000/100,000× 50,000/100,000
= 28/4

Ground Area= 7km²

ANSWER= B

5] The cardinal point direction from point A to B is ESE. Determine the Bearing

A] 112.5°
B] 180°
C] 67.5°
D] 202.5°

Solution

ESE= 45°+22.5°
= 67.5°

ANSWER=C

6] An original map with scale 1:50,000 what will be the reduced scale?

A] 1:100,000
B] 1:75,000
C] 1:25,000
D] 1:10,000

Solution

Original map scale = 1:50,000
Reduced map = 1:50,000×2
= 1:100,000

ANSWER= A

7] A hypothetical map with scale 1:50,000 is having a water body with complete square 10 and incomplete square 14. Calculate the ground Area

A] 4.25km²
B] 8.2km²
C] 4.9km²
D] 8.5km²

Solution

Map scale= 1:50,000
Complete square= 10
Incomplete square 14/2= 7

Total number of squares= Complete+incomplete square

= 10+7
= 17cm²

Ground Area= Map area× map scale/100,000 × map scale/ 100,000
= 17× 50,000/100,000 × 50,000/100,000
= 17/4

Ground Area= 4.25km²

ANSWER= A