LB-Econmomics - 1st Cycle - HTTC

ENTRANCE EXAMINATION INTO FIRST YEAR OF FIRST CYCLE 1 OF HTTC
BAMBILI (ECONOMICS)
SESSION: 2017 .................................................................................................................................................................................................................. 1

SECTION ONE: ECONOMICS (MAJOR PAPER) .......................................................................................................................................... 1
SECTION TWO: Geography/Mathematics (20%) ....................................................................................................................................... 6
SECTION THREE: GENERAL KNOWLEDGE AND BILINGUALISM (10%) ................................................................................... 7
SECTION FOUR: STRUCTURED ESSAY (20%) ............................................................................................................................................. 7
SESSION: 2016 .................................................................................................................................................................................................................. 8
Section I : Major paper (ECONOMICS) (40 marks) ............................................................................................................................................ 8
SECTION 2: MINOR PAPER: GEOGRAPHY /MATHEMATICS (20Marks) ....................................................................................... 12
SESSION 2015 ................................................................................................................................................................................................................. 15
SECTION ONE: MAJOR PAPER: ECONOMICS.......................................................................................................................................... 15
SECTION B: MINOR PAPER-GEOGRAPHY................................................................................................................................................ 21
SECTION B: MINOR PAPER-MATHEMATICS............................................................................................................................................ 24
SESSION: 2014 ................................................................................................................................................................................................................ 28
PART I: ECONOMICS. ........................................................................................................................................................................................... 28
PART II: MATHEMATICS..................................................................................................................................................................................... 32
SESSION: 2013 ................................................................................................................................................................................................................ 34
MAJOR: ECONOMICS ........................................................................................................................................................................................... 34
ECONOMICS 2 ......................................................................................................................................................................................................... 37
GEOGRAPHY (ECONOMICS MINOR) .......................................................................................................................................................... 41
SESSION 2012 ................................................................................................................................................................................................................. 45
PAPER: ECONMICS (MAJOR), ........................................................................................................................................................................... 45
SESSION 2011 ................................................................................................................................................................................................................. 50
ECONOMICS MAJOR ............................................................................................................................................................................................ 50
SESSION 2010 ................................................................................................................................................................................................................. 55
ECONOMICS MAJOR ............................................................................................................................................................................................ 55
SESSION 2009 ................................................................................................................................................................................................................. 59
ECONOMICS MAJOR; ........................................................................................................................................................................................... 59
SESSION 2008 ................................................................................................................................................................................................................. 62
ECONOMICS MAJOR ............................................................................................................................................................................................ 62
TEST 1................................................................................................................................................................................................................................ 65
TEST 2................................................................................................................................................................................................................................ 67
ANSWERS TO 2017 ....................................................................................................................................................................................................... 72
ANSWERS TO 2015 ....................................................................................................................................................................................................... 72
ANSWERS TO 2014 SESSION ................................................................................................................................................................................... 73
ANSWERS TO 2013 SESSION (HTTTC) ................................................................................................................................................................ 77
ANSWERS TO 2013 SESSION (HTTC) ................................................................................................................................................................... 77
ANSWERS TO 2012 SESSION (HTTTC) ................................................................................................................................................................ 77
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BAMBILI (ECONOMICS)
CYCLE: 1st CYCLE SESSION: 2017/2018

LEVEL: 1st YEAR DURATION: 3 HOURS
OPTION : ECONOMICS
SESSION: 2017
INSTRUCTIONS
-In your answer booklet, write only the letter of the answer chosen against the question
number.
- This question paper must be submitted together with the answer booklet.
-Each MCQ question carries one (1) mark.
-Answer Question 4 on your answer booklet
SECTION ONE: ECONOMICS (MAJOR PAPER)
1) When an individual’s consumption of a public good does not reduce its benefit to
other consumers, this characteristics is called: A) Non-excludability B) zero cost of
supplying extra units C) Non-rivalry D) Free-rider syndrome
2) Opportunity cost means: A) The benefit forgone B) The cost forgone C) Benefit
received from the next best alternative D) Cost incurred in producing the good chosen
3) Goods that have positive cross elasticity of demand are known as: A) Complements
B) Independent goods C) Inferior goods D) Substitute
Question 4 and 5 are based on the table below
labor 1 2 3 4 5 6 7 8
Total product 3 8 12 15 17 17 16 13
points A B C D E F G H
4 Constant returns occurs between output ranges: A) A-B B) B-C C) C-D D)
D-E
5 Increasing return occurs between output ranges: A) A-B B) B-C C) C-D
D) D-E
6 A loss making firm carries on production in the short run provided that: A) It can
cover its variable cost B) it can cover its total costs C) it can cover its fixed cost D) it
can cover its average revenue
7 A trade union can achieve both an increase in the wages of its members and
employment opportunities by: A) Negotiating a minimum wage B) Restricting the
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supply of labor C) Enforcing open shop practices D) Increasing the demand for
labor
8 The population of a country in 2015 was 10million people. The birth natural
growth rate was 5% while five hundred thousand deaths were recorded, therefore
the birth rate of the country in 2015 was: A) 6.5% B) 65% C) 50% D) 5%
9 A firm experiences increasing returns to variable factor when:

A) Total product is increasing at a decreasing rate
B) Proportionate increase in all factors lead to a more than proportionate increase
in output
C) Total product is increasing at an increasing rate
10 An individual’s income increases from 100000 to 120000 FCFA.As a result his

saving rises from 1000 to 3000FCFA, what is his MPC? A) 0.9 B) 0.2 C) 0.5 D) 0.4
11 The word preventive checks as used by Malthus are those:

A)provided by nature B) provided by man to control the population C) provided by
nature to prevent deaths D) provided by man to prevent death
12 In an economy Y=C + I. If C= 100M + 0.6Y,planned investment is 200M and
Y is 800M,therefore the value of unplanned Investment is A) 580M B) 600M C)
20M D) 1000M
13 All the theories below explain why the consumers buy more of a good at lower
price than at higher price except; A) the marginal utility theory B) the indifference
curve theory C) Demand and Supply D) The revealed preference theory
14 When a consumer is consuming two goods X and Y,he will be at equilibrium

where
A) MUX/MUY=PX/PY B) MUX/PX=MUY/MUX C) PX=PY D) MU=price

15 The following information reveals the national income accounts of a hypothetical
country
TDEmp= 500MFCFA GDPmp=480MFCFA GDPfc=460MFCFA Subsidies=
10MFCFA What is the value of imports? A) 560MFCFA B) 980MFCFA C)
30MFCFA D) 20MFCFA
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16 It is only in the Command Economic system that production of goods and
services:
A) Responds to the preference of firms B) Responds to directives C) Responds
to the preferences of households D) Responds to consumer choice
17 Which of the following policies could be best in making exports competitive?
A) Deflation B) Devaluation C) Revaluation D) lowering interest rates
18 The following table carries information about Cameroon and Nigeria.
Rice(tons) Coffee(tons)
Cameroon 2000 1000
Nigeria 1500 500
If trade takes place between the two countries, what will be the range of mutually
beneficial terms of trade for one ton of coffee? A) 2 to 3 tons of rice B) 1/3 to ½ ton
of rice C) ½ to 2 tons of rice D) 1/3 to 3 tons of rice
19 Which of the following cause a shift of the supply curve to the right?
A) A decrease in value added tax B) An increase in the price of a complement C)
An increase in population D) A reduction in advertising for the good
Question 20 and 21 are based on the aggregates below:
C=2000MFCFA + 0.5Y I=500MFCFA G=100MFCFA and T=0.3Y

20 The equilibrium level of income in this economy is;
A) 2000MFCFA B)5200MFCFA C)7000MFCFA D)9000MFCFA

21 What is the value of consumption at the equilibrium level of income?
A) 2000MFCFA B)5500MFCFA C)4600MFCFA D)9000MFCFA

Use the following to answer question 22 and 23. In a closed economy without
government=150MFCFA + 0.7Y, and I = 100MFCFA.
22 At which level of income is savings equal zero?
A) 500MFCFA B) 833.3MFCFA C)8.50MFCFA D)1000MFCFA
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23 At what level of national income is the economy at equilibrium
A) 500MFCFA B)833.3MFCFA C)8.50MFCFA D)1000MFCFA
24 Laissez faire economy is defined as a system in which is:

A) Partly allocated by market forces and partly by the state B) partly allocated to meet
the needs of producers and partly to meet consumer needs C)partly used to produce
consumer goods and producer goods D)partly used to produce goods and partly to
produce services
Questions 25 and 26 are based on the table below:
Product A B C D E
combination
Capital 25 22 17 10 0
goods(tons)
Consumer 0 9 17 24 30
goods(tons)
25 What is the opportunity cost of one ton of capital good in terms of consumer good?
A)0.6 B) 1 C) 1.6 D) 3
26 To move from point C to D,the opportunity cost of one ton consumer good in
terms of capital goods will be: A)0.6 B) 1 C) 1.6 D) 3
27 The determinants of the multiplier in a closed economy without government are:

A)Taxes and consumption B) Imports and consumption C) Consumption and saving
D) Export and saving
28 When a firm reduces price in the short run so as to force competitors out of the
industry, such pricing policy is called: A) predatory pricing B) Skimming pricing C) limit
pricing D) Market penetration pricing
29 A favorable movement in terms of trade can be caused by:
A) fall in export prices B) A fall in import prices C) Export prices falling faster than
import prices D)import prices rising faster than export prices
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30 If a bank maintains a cash ratio of 20%, how much cash should be deposited for the
bank to create a deposit of 1200MFCFA? A) 600MFCFA B) 240MFCFA C)
2400MFCFA D) 1200MFCFA
31 Anything which serves as a medium of exchange and not as a store of value is :

A) Legal tender B) Near money C) Money substitute D) Token money
32 A system of adjusting incomes upward according to the rate of inflation so that their
real values remain unchanged is known as: A) Indexation B) income policy C) wage
freeze D) wage restraint
33 What type of unemployment exists when workers marginal product is zero?

A) Disguised unemployment B) Causal unemployment C)Structural unemployment
D)Cyclical unemployment
34 It appears in all method of calculating national income: A) Stock appreciation B)
Stock depreciation C) Capital consumption D) residual error
35 All except one are correct about a good form of money. A) Scarcity in supply B)
Double coincidence of wants C) Uniformity D) Divisibility
36 The main short run opportunity cost of economic growth is: A) Reduction in future
living standards B)Reduction in production of capital goods C)Reduction in production
of consumer goods D)Reduction in non- renewable economic resources
Questions 37-40 are based on the following definiitons.Select the appropriate definition
from A to D and match with each question
A) Anything which acts as a medium of exchange but not as a store of value. Can be
used to exchange for goods and services and also to settle debts.
B) Any liquid asset that acts as a store of value but cannot be used as a medium of
exchange. Can easily be converted into liquid asset without a loss in value
C) Any amount of money standing in commercial bank or any financial institution in

the name of its customer or member.
D) Any form of article used in form of money
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37.Ner money
38.Commidity money
39.Money substitute
40.Bank deposit
SECTION TWO: Geography/Mathematics (20%)
1 Which of the following theories guided the location of sugar processing plant at
Mbandjock in Cameroon? A) Fred’s behavioral matrix theory B)David smith’s spatial
margins of profitability C) Losch’s market area theory D) Weber’s least cost location
theory
2 In which of the following situations is the hydrological cycle considered as a closed
system? A) Oceanic hydrological system B) Continental hydrological system C) Global
hydrological system D) River basin hydrological system
3 Select from the rivers the one with a single maximum regime: A) Ntem B) Amazon
C) Wouri D) Niger
4 Identify the principal characteristics of equatorial climate in the world: A) Hot/wet
B) Hot/dry C) Cold/dry D) Warm/wet
5 The length of the line joining the point A (1,2) and B(5,2) is A) 4 B) 6 C) 5 D) 2
6 Given Y=x4-x3-1,when x=3/4 the value Y will take is A) Maximum B) Minimum C)
Negative D) Positive
7 The area under y=4x3 + 8x2 from x=-2 to x=0 is A) 4.5 B) 5.5 C) 6.5 D) 7.5
8 Given two vectors U=( 3 1), and V=(5 4) then the vector 4U + 2V is: A) (20 10) B)
(60 22) C) (22 12) D) ( 22 14)
9 If a,b and c are real numbers, then the monotonic law of addition when a<b is: A) (
a + c) B) ( b + c) C) ( a + c < b + c) D) ( a + c> b + c)
10 Which one of the following is the principal weathering process in the tropical
rainforest? A)Intense chemical weathering B) Intense mechanical weathering C) Slight
chemical weathering D) Intense freeze-thaw weathering
11 Identify from below the population pyramids which can be applicable in the situation
of Cameroon: A) Intermediate B) Progressive C) Regressive D) Stationary
12 The phenomenon where an industry remains in an area after the reasons that caused
it to locate there have disappeared is known as: A) Industrial inertia B) Industrial
agglomeration C) Industrial momentum D) Industrial foot loosing
13 Which one of the following mode of transport is best suited for the transportation
of goods over long distances? A) Railway transport B) Air transport C) Water transport
D) Highway transport
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14 Which of the following is an input into the farm system? A) Meat B) labor C)
ploughing D) Crop rotation
15 Solving from dy/dx when x2 + 2xy + y2=3 results in A) 2 B) 4 C) -1 D) 1
16 The value of 2561/2 is A) 18 B) 13 C) 16 D) 21
17 The principal type of rocks in the earth’s crust are: A) Basalt B) Sedimentary C)
Igneous D) Metamorphic
18 Which one of the following is not common on leeward side of mountains? A) Clear
sky B) Sunny weather C) More clouds D) Little rainfall
19 Which one of the following surface has the lowest albedo? A) Snow B) Forest C)
Black topsoil D) Desert
SECTION THREE: GENERAL KNOWLEDGE AND BILINGUALISM (10%)
1 The causes of land disputes in Cameroon are: A) No legislation B) Building of
infrastructures C) Quest for farmland D) Non respective of legislation
2 Which of the following country is not a member of CEMAC? A) Democratic
Republic of Congo B) Chad C) Equatorial Guinea D) Congo
3 Which pair of dates is associated with the first and last papal visits to Cameroon? A)
1961 and 1982 B) 1966 and 1990 C) 1972 and 2008 D) 1985 and 2009
4 He is Pope Emeritus: A) John XXIII B) John-Paul II C) Benedict XVI D)
Francois III
5 Which Journalist introduced the resignation speech of president Ahmadou Ahidjo in
November 1982? A)Peter Esoka B) Jean Claude Ottou C) Ambroise Oyono D) Henri
Bandolo
6 Quel president americain a contribute a stopper la guerre de secession?
A)Georges Washington B) Abraham Lincoln C) Barack Obama D) George W.Bush
7 Quel est le pays lmitrophe du cameroun a l’ouest?
A)La Republique centrafricaine B)Le Congo C)Le Tchad D) Le Nigeria
8 Quelle est la duree du mandate presidential au cameroun?
A)Sept ans B) Sept ans reenouvelable une fois C) Sept ans renouvelable D) Sept ans
non renouvelable
9 Combien de semestres compte un siècle?
A)100 B) 150 C) 200 D) 250
10 Choisissez l’orthographe correcte:
A Deux heures et demie B) Deux heures et demies C) Deux heures et demi D)
Deux heures et demis
SECTION FOUR: STRUCTURED ESSAY (20%)

1. Discuss the fact that a mixed economic system is a link between the free enterprise
and planned economic systems.
2. Of what importance is government expenditure to its citizens?
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COMPETITIVE ENTRANCE EXAMINATION INTO HTTC/ENS BAMBILI
CYCLE: 1ST CYCLE
LEVEL: 1ST YEAR Session: 2016/2017
DEPARTMENT: ECONOMICS
DURATION: 3hrs
SESSION: 2016
Section I : Major paper (ECONOMICS) (40 marks)
1.If it is prohibitively costly to provide a commodity only people who pay for it , then
the commodity is said to be ;
A) Non excludable B) non rival C) public d) Social
2. Whealth As Used In Economics Entails
A) the stock of all capital goods valued at constant price
B) the stock of all good whichhave a money value
C) the stocck of capital goods that have money value
D) the total saving of the whole community
Questions 3 to 5 are base on the following information on the financial structure
of X and Y company
The company has 100 000frs , 5% preference shares of 1000frs each, 50000frs 5%
debentures of 1000frs each. After engaging all trading expenses,taxation and allocations
to reseve ,the company has 27,500,000frs available for distrubution.
3. what rate of dividend will be paid to ordinary shareholders ?
A) 2.5% B) 7.5% C) 9% D) 10%
4.If ordinary shares are quoted at 16 000frs each,what is the current yield ?
A) 8/5% B) 25/8 % C) 12.5% D) 13.5%
5.The nominal value of the equity of X and Ycompany
A) 150 000 000 frs B) 200 000 000frs C)240 000 000frs D) 250 000 000frs
6.In Cameroon during year X the death rate dropped to 40 people per thousand but
birth rate remained stabe at 40 per thousand. At this growth rate , the population of
Cameroon will
A) double itself in 40 years
B) double itself in 20 years
C) remain Stable in 20years
D) fall steadily over the years
7.Which of the following is an internal source of capital to a firm ?
A) call up shares B) placings C) loans from financial institutions D)offer for sale
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8. Assume a 10% increasein the price of tobacco reduces the quantity of demand by 5%
.this implies the elasticity of demand for cigarette is
A) 5 B) 0.5 C) 50 D) it can not be determine from the information
given
9.which of the following situatuions do not lead to an increase in equillibrium price
A) A decrease in supply accompany by an increase in demand
B) A dedcreas in supply without a change in demand
C) A tax imposed by the government on the producers of a good
D) An increase in supply accompanied by a decrease in deman
10. the ultimate objectives of economics is to develop…………to deal with our
problems
A)analysis B)theories C)Policies D)Any of the above
11.According to the invisible hand we able to obtain plantain in the market because of
A) Production B) Productivity C) Self-interest D) Demand
12.The production of capital implies the willingness to
A) Produce now B) wait C) Consume D) Demand
13.A normative economic statement is very complex due to its
A) Objectivity B) Clarity C) Subjectivity D) Time consumption
14.The best size of population that Cameroon wishes to have
is……………….population
a) Under B) OVER C) optimum D) growing
15.in free market system the amount of goods and services that any household gets
depends on its
A) income B)Wage and interest rate C)Income and wealth D)Wealth
16. if John decides to give five 33 exports in exchange for a big Guinness from Peter
then:
A) john values five “33’ exports more than one big guinness
B) Peter must be better off because of the exchange or trade
C) John values one big Guiness morethan five 33 exports
D) Neither John nor Peter is likely to consider himself
17. All the countries of CEMAC are characterised by
A) Freedom of enterprise B) specialisation
C )Private ownership of all production facilities D) Competition in product and
resources markets
18.A good is consider a free good if
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A) there is no excess supply of the Goods
B) it is distrubuted by lottery instead of prices
C) The amount available is less than the amount desired by buyers
D) there is no opportunity cost involved in acquiring the good
19. A bond is said to have been sold at a discount when the
A) Market price is greater than the face value
B) Market price is less than face value
C)Market price is equal to face value
D) the yield is very high
20. A line that shows all combination of two goods that can be purchase with a given
income level is called
A) A demand curve B) Budget line C) Income consumption curve D) indifference
curve
21. After a price floor is imposed above equillibrium, the total economic surplus in the
market will
A) Be relocated from from producers to consumers B) Remain unchange C) Rise D)fall
22. If the cross elasticity of demand for two commodities X and Y is positive then
A) X and Y are complements B)X and Y are substitutes C) X and Y are both inferior
goods D)X and Y are not related at all
23. If the demand curve is perfectly inelastic and the supply curve is relatively elastic
and the government imposes a sale tax in the market,who face the largest burden of the
tax ?
A) The consumer B) the producer C) The rest of the world D) none of the above
24.If it is odserved that in a particular market price has risen and quantity exchange has
increase , it is likely that
A) Supply has increase B) Supply has decrease C)Demand has increased D) Demand
has decrease
25. A firm’s cost structure is as follows; TFC=10,000frs ,ATC=1600f and
AVC=600Frs, the firm’s level of output is ?
A)100 units B) 150 units C) 50 units D) 300 units
26. Comparing a monopoly and a perfect competive firm,the monopoly,the monopoly
will produce
A) Less at a lower price B) more at a lower price C)Less at a higher price D)The same
quantity at lower price
27) The privatization of state-owned monopolies necessarily implies
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A)An improvement in economic efficiency
B) a reduction in the social cost of the monopoly
C)An elimination of the need for regulation
D)None of the above
28.If 4 firm concentration ratio of an industry is 0.0009,this industry is most likely
A) A monopoly B) An oligopoly C)Monopolistically competitive D)Perfectly
competitive
29.What does the gradient of the total revenue measures ?
A)The average revenue B) The marginal cost C)The rate of change of total product
D)the marginal revenue
30.Double accounting in national income calculations can be avoided by
A) Including transfers in their calculations
B) Counting both intermediate and final goods
C) Counting only final goods
D) Counting intermediate goods only
31. Which of the following is included in the calculation of gross domestic product
A) used Auotmobiles by consumers B) Transfer Payments C) Telephone service for a
home D) Bread for a restaurant
32.identify the category of final goods approach in gross domestic product as person
buys a seconded car at an auction sale
A) Consumption B) Government expenditure C)investment D)Income
33.Given a consumption function C=a + bYd, it is said to be linear in
A) Consumption B) Disposable income C) Investment D) income
Questions 34 and 35 are based on a hypothetical economy which is in
equillibrium at an output level of 480 million FCFA, the MPS is 0.4 and the tax
rate is 30%. Rounding off your answer to two decimal places,the
34.value of the autonomous expendiuture multiplier is
A) 1,43 B) 1,39 C)2,50 D)1,72
35.Change in government expenditure required to achieve a new equillibrium output of
580 million FCFA is
A) 58.14 million FCFA B)69.90 million FCFA C)40,00 million FCFA D)69,00 million
FCFA
36. The aggregate capital output ratio in an economy is 1:3 and output rises by 420
million FCFA,how much will investment initially increase
A)145 million FCFA B)140 million FCFA C)135 million FCFA D)130 million FCFA
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37. All are characteristics of money except
A) it is divisible B)it is durable C)it is easy to be forge D) it is portable
38. International trade forces domestics trade to become more competive in in terms
of
A)The introduction of new products C)produce price
B)Product design and quality D)all of the above
39.Peter wants to trade his piano for a TV set, Paul wants to trade his TV set for a
piano,Peter and Paul have
A)the basis for a liquidity exchange
B)A double incident of demand
C) the basis for a double fiat exchange
D)A double coincidence of wants
40.A central bank
A)Acts as a fiscal agent for the government
B)Holds the deposit of commercial banks
C)Supplies the economy with paper currency
D) Does all of the above
SECTION 2: MINOR PAPER: GEOGRAPHY /MATHEMATICS (20Marks)
1. A theory stating the earth’s solig crust is floating on a fluid
A)Continental drift B) The theory of isostacy C)Big bang theory D) Plate tectonics
theory
2. Shallow focus earthquakes are common at which of the zones below
A)collision plate margins B)Constructive plate margins C)Destructive plate margins
D) Shield areas
3.The Circum-pacific belt corresponds to which of the following plate margins:
A)Collision plate margins B)Convergent plate margin C)Divergent plate margins
D) Neutral plate margin
4.Which of the following mountain is not a product of plate tectonics ?
A) Fold mountains B)Volcanic mountain C)Block Mountains D) Residual
Mountains
5. Rock fragments which are dislodged and more freely downslope from steep bare
refers to which process of mass movement from the list below:
A) Rock fall B) Landslide C) Debris D) Earth flow
6.Which of the following combinations is made up only of the major soil types:
A) Organic matter, inorganic substance,air,water
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B) Organic matter, soil organisms,bed rock and air
C) Organic matter,rocks ,nitrogen and water
7.Isolate the odd sample of soil from the major soil groups below:
A) Tropical soils: ferralitics and fereginous soils
B) Boreal forest: glei soils
C) Temperate grassland: chernozems and chesnuts
D)Temperate deciduous: brown earth
8.Which of these locations records a positive net radiation balance ?
A. Over the tropics of capricorn
B. Over the tropics of cancer
C.Between latitude 30o S and 40o N
D.Between Latitude 0o and 30o N/S of the equator
9.Which of the following regions in Caneroon has the highest population growth
rate?
A) North west Region B) Littoral C) South West Region D)North Region
10.How can over population be effectively checked ?
A) By increasing the standard of living
B) By encouraging rapid industrialization
C) By increasing social amenities
D) A and B are correct.
11. the length of the line joining the point E(-2,3) and F(4,3) is
A) 5 B)6 C) 7 D) 3
12. The gradient of the line C(5,-11) and D(4,3) is
A) -5/3 B) -7/3 C) 1/5 D) -5/11
13. Mr.Oben an accountant with a micro finance firm earns an income of 100,000
FCFA per month in 2010 and 300,000FCFA in 2014. He pays a tax of 15000FCFA
.Calculate the average rate of tax (%) in 2014
A) 15% B) 7.5% C)5% D) 3.75%
14.If desired rate of return is minimum by actual raturn then it is classified as
A. future each flow B.Present cash flow C.positive cash flows D. negative cash
flow
15. Assumption in calculating annuity is that every payment is classified as
A. Future cash flows B.present cash flow
C.positive cash flows D.negative cash flow
16.Accumulated series of deposits as future sum of money is classified as
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A.marginal fund B.nominal fund C.sinking fund D.annuity fund
17.Amount of money today which is equal to series of payment in future
A.nominal value of annuity B. sinking value annuity C.Present value anuity D.Future
value anuity
18.Values of varialbles that make equations true are classified as
A. roots of equations B.value of equation C.Solution of equation D.degree of
equation
19.Degree of any polynomial expression is classified as
A.degree of expression B. degree of square roots
C.degree of polynomial D.degree of equation
20. Equation solved roots which are not actual roots of original equations are classified
as
A. extrinsic roots B.intrinsic roots C.extraneous D. false roots
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COMPETITIVE ENTRANCE EXAMINATION INTO THE FIRST YEAR OF THE
FIRST CYCLE
DEPARTMENT OF ECONOMICS
SESSION 2015
Instructions: Answer all the questions in Section A and choose a Minor Paper in
Section B; either Geography or Mathematics. Selecting the most appropriate answer
and writing the corresponding letter (A, B, C or D) in the Answer Booklet provided.
Make sure you insert the question paper inside the Answer Booklet before you
leave the examination hall.
Time allowed: 3 Hours.
SECTION ONE: MAJOR PAPER: ECONOMICS
1- The concept of opportunity cost
a) Suggest that all our wants can be archived alternatively
b) Would be irrelevant if we eliminate poverty alternatively
c) Is relevant only for a capitalist economy like the United States
d) Suggests that a major increase in public health-care spending means as
expression in other areas will be difficult to achieve.
2- Which of the following is an incorrect statement?
a) A model is a deliberate simplification of reality
b) A behavioural law is a piece of legislation set by government and tells people
what they can and cannot do
c) Data are pieces of evidence about economic behaviour
d) Cross-section data record at a point time show the way an economic variable
differs across different of individuals or groups of individuals
3- In a private enterprise community, the basic economic problem of what goods shall
be produced, relays on
a) The government through taxes
b) The invisible hand concept
c) The spending habits of the citizen
d) The use of private capital to produce high quality goods
4- If it is impossible to make somebody better off without someone else worse off,
then the current situation must
a) Allocatively efficient
b) Not be optional
c) Be inequitable
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d) Curse the problem of scarcity
5- Labour turnover implies
a) Rate of change of labour force
b) Rate at which population qualifies to jobs
c) Endless movement of workers from job to job
d) Rate at which the labour force is trained.
Questions 6 to 9 are based on the following information: the town of Bakasi has the
following employment figures-total population=320000, total employment=120000
and total unemployment=80000
6- What is the unemployment rate?
a) 10%
b) 20%
c) 30%
d) 40%
7- What i9s the labour participation rate?
a) 50% b)
b) 56.25%
c) 62.5%
d) 70%
8- Now if half of the unemployed people stop looking for a job, what is the new
unemployment rate?
a) 10% b)
b) 12.5%
c) 25%
d) 33.33%
9- What is the new participation rate?
a) 50%
b) 56.25%
c) 62.5%
d) 70%
10- The cyclical fluctuation in the agricultural sector in Cameron is best described by
the theory of
a) Agric-trade cycles
b) theory of the fluctuation and growth of products
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c) the Cobweb theory
d) seasonal changes in weather conditions
11- the diminishing marginal rate of substitution refers to:
a) One good that is substituted for another when relative price change
b) Consumer’s preference for a good diminishes with each successive unit
consumed.
c) Holding total utility constant, diminishing quantities of one good must be
sacrificed to obtain successive equal increase in the quantity of the other
good.
d) A quantity of one good that a consumer must sacrifice to increase the quantity
of the other without changing total utility.
12- If the cross-price elasticity of demand between two goods is -4, then
a) The two goods are complements
b) The two goods are nominal
c) The two goods are substitutes
d) The two goods are unrelated
13- When all prices and income increases by the same percentage, the quantity of goods
X demanded will
a) Increase only if X is a nominal good
b) Increase only if X id an inferior good
c) Always remain the same
d) Always increase
14- The supply curve of a company in perfect competition in the short-run is
a) Average fixed cost curve
b) Marginal cost curve above average variable cost
c) Marginal cost curve above marginal revenue
d) Average total cost curve above marginal cost
15- A firm’s variable cost
a) Directly reflect the price of the firm’s output
b) As dependent upon the level of fixed cost in the long run
c) Are always equal to the firm’s total average cost in the long run
d) Are determined by quantity of output produced by the firm
16- Which of the following necessarily declines continuously in the short run as out put
increases?
A) Marginal cost
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B) average variable cost
C) average fixed cost
D) total fixed cost
17- One lone-run results of perfect competition is
A) Inefficient production C)
B) Price equal to average fixed cost
C) normal accounting profit
D) zero accounting profit
18- An incumbent firm is one that
A) Is already in position in market
B) Cannot rival the other firms
C) beats the other firms
D) supernormal firm
19- The market share among firms exhibit normal distribution, this means that
A) All firms have the same market share
B) market shares of firms are at break-even
C) only normal profits are gained by firms
D) mean market share of each firm equal is variance.
20-An entrepot is a place
A) Where goods are imported
B) where goods are exported
C) where goods are imported and processed for exports
D) where goods are imported and re-exported without prosess
21- Which of the following growth rates best measures Cameroon’s living standards?
A) The annual rate of change in real government spending per capital
B) The annual rate of change in real GDP per capital
C) The annual rate of change in real GDP
D) The annual rate of change in nominal BDP
22-A decrease in government expenditures in simple Keyensian model entails
A) Increment in short-run equilibrium outputs
B) Reduction in potential output
C) Reduction in short-run equilibrium output
D) Increment on potential output
23-A circular flow of income setting
A) Always in balance
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B) Shows that savings must equal investment for an equilibrium level of national
income
C) Ignores foreign trade for simplicity
D) Shows that withdrawals must equal injections for an equilibrium level of national
income
24-The moral suasion of the central bank to commercial banks is
A) Best at inflation
B) best during demand push inflation
C) best at supply pull inflation
D) none of the above
25-Is not a measure of restricting imports in Cameroon
A) Import license
B) U subsidies
C) tariffs
D) import tax exoneration
26- In Keynesian macro-model, as national income exceeds aggregate expenditure:
A) Firms experience unexpected increase in their inventories
B) Firms find their inventories decreasing rapidly
C) Inflationary pressures exist
D) The desired investment exceeds desired savings to cause inflation
27-Is regarded as a withdrawal from the circular flow of income
A) A rise in public investment
B) a surplus on the balance of payments
C) a budget deficit
D) a deficit on the balance of payment
28-The income of the Director of ENS rises from 15000frs to 17000frs and this saving
rises from 100frs to 300frs, therefore his MPC will be
A) 0.20
B) 0.90
C) 0.80
D) 0.60
29-Assume the demand of money depends on the interest rate; therefore a 20% increase
in the money supply will increase
A) Nominal GDP by 20%
B) nominal GDP by more than 25%
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C) nominal GDP by less that 20%
D) real GDP by 40%
30-The demand of real money balance will reduce because of
A) A fall in real income
B) A fall in the interest rate
C) a fall in general price level
D) a rise in the general price level
31- The major component of the money supply is
A) Gold certificates
B) demand deposits
C) paper money in circulation
D) coins
32-The bank rate is the rate of interest at which
A) The central bank lends to commercial banks
B) The central bank lends to large corporations
C) The commercial banks lends to large corporation
D) Savings and loan associations lends to indigenes
33-Is the most liquid asset at UBA bank’s balance sheet
A) Deposits with the central bank
B) Notes and coins is till
C) customers’ deposit account
D) customers’ current account
34-Bilateral is
A) Technical aid from IMF
B) Loan at banks’ standards
C) assistance from one country to another
D) aid with payment in inconvertible currency
35-Overvaluing the domestic currency relative to foreign currency entails
A) Discouraging import substitution and export
B) Encouraging export substitution and discouraging imports
C) Always leading to a balance of trade
D) Creating a trade surplus in the local market
36-The welfare effects of a quota depends to a considerable extent upon
A) Who leads the quota license
B) the size of the quota
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C) elasticities of domestic demand and supply
D) all of the above
37-Multinational corporations always
A) Produce gods
B) produce primary or manufactured goods
C) produce manufactured goods
38-The main reason of exchange equalization is to
A) Smooth fluctuations in a country’s exchange rate
B) Finance a balance of payment deficit
C) Increase the size of a country’s foreign exchange reserves
D) Facilitate the international exchange of goods and services
39-Terms of trade are
A) Provision of international trade legislation
B) The rate at which goods Gabon will exchange for those of Cameroon
C) A country marginal rate of transformation
D) Set by the World Trade Organisation
40-A customer consuming one good is
A) Always in equilibrium
B) In equilibrium when more is consumed
C) when price equates marginal utility
D) all of the above
SECTION B: MINOR PAPER-GEOGRAPHY

1. the study of landforms, involving their origin, nature, history and processes that
continually shape in time and space on the earth’s surface is referred to as
A) geography
B) geomorphology
C) geosciences
D) geomorphic processes
2. which of the following constitute the common forms of rocks on the earth’s crust?
A) Basalt
B) rhyolite
C) granite
D) gabbro
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3. The correct sequence of the layers of the earth starting from the interior is
A) Core, mantle, atmosphere
B) Core, mantle, core
C) crust, mantle, core
D) sima, sioae, core
4. Relatively small topographic uit reising at 900m above the surrounding ocean floor
are generally called
A) Mid-ocean ridges
B) abyssal plains
C) abyssal hills
D) guyots
5. The act of old basalt giving room to new basalt best describes
A) Seafloor spreading
B) continental drift
C) plate tectonics
D) isostacy
6. Lava that flows over a long distance after a volcanic eruption is
A) Viscous
B) fluid
C) acidic fluid
7. The two main criteria of climate classification according Koppen are
A) Temperature and clouds
B) temperature and weather
C) temperature and seasonality of rain fall
D) temperature and location
8. Which of these is not a glacial deposit?
A) Erratic
B) drumlins
C) morains
D) impeded dunes
9. Deltas are sediments deposited when
A) Hail mate
B) Maintains erupt
C) a river enters a standing body of water
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D) water evaporation from standing lake
10. Is not a factor that influence agriculture
A) Climate
B) tradition
C) demand
D) corn
11. Stream discharge is best defined as
A) The width, the depth and the velocity of water in the channel
B) The volume of water passing through the channel in a given period of time
C) The water measurement in cubic meters per second in a channel
D) The available water in a stream channel that flows in the area
12. It is the name given to the total area drained by a stream and its tributes
A) Water divides
B) water shed
C) drainage divides
D) drainage basin
13. The relationship of the law of stream volume and rank of stream is
A) Constant
B) negative
C) positive
D) fluctuating
14. The earth’s population is unevenly distributed manily due
A) People tend to form restrictive groups
B) Most climates cannot support life
C) People must live near a water body in order to survive
D) Natural obstacles greatly restrict where people can live
15. It is a long term demographic impact of a water on the population structure
A) Decrease in birth and death rates
B) baby dust
C) Baby boom
D) D) economic hardship
16. The population of a town in Cameroon is 1000000 people and there are 5000deaths
a) What is the crude death rate
A) 50%
B) 500%
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C) 1000%
D) 100%
17. Necessity is the mother of invention, this is associated to
a) Rev.Thomas Malthus
b) Esther Boserup
c) Beanour Garmer
d) Edward Uman
18. Is not an indicator of the socio-economic consequences of an ageing population
a) Increase in retirement age
b) Decrease in social security systems for the old
c) increase in state expenditure
d) D) shortage of labour
19. The inverse distance law is associated to the following
a) A Gravity model
b) G.K.Zipt
c) Edward Uman
d) Reveinstein
20. The relative humidity of air at condensation level is
a) 50%
b) 0%
c) 79%
d) 100%
SECTION B: MINOR PAPER-MATHEMATICS

1. The length of the line loining the point E (-2,3) and F (4,3) is
A) 5
B) 6
C) 7
D) 3
2. The gradient of the line joining C (5,-11) and D (-1,3) is
a) 5/3
b) -733
c) 1/5
d) -5/11
3. The equation of the line given its gradient passing through the point 3, (-2, 5) is
a) 3x-y-11=0
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b) 5x-y+9=0
c) 7x-y+11=0
d) 3x+y+11=0
4. The intersection of the folowing pairs of lines y+5x+2 and y=3x-1 is
a) (-5/3, -7/2)
b) (-3/2, -11/2)
c) (11/7, -13/7)
d) (3/2, 11/2)
5. The gradient function of the curve y=3x2
a) 8
b) 2
c) 5
d) 5/2
6. The coordinates of the curve y=5+9x-7x2 where the gradient is zero is
a) (0.64, 7.8)
b) (7.8, 0.64)
c) (0.42, 7.9)
d) (0.78, 0.8)
7. The value of X for which the derived function dy/dx=1/2X+3 is zero and the
corresponding graph has the highest and lowest point for X is
a) -6, lowest
b) 6, lowest
c) -8, highest
d) 8, highest
8. Given y=x3-x4-1, when x=2, the value y will take is
a) Maximum
b) minimum
c) negative
d) positive
9. The area of the segment cut off y=x2-4x+6 by the line y=3 is
a) 1.33
b) 4.5
c) 2.33
d) 3.33
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10. Seven boys and two girls are to sit together on a bench for ENS entrance. In
how many ways can they arrange themselves so that the girls do not sit next to
each other?
a) 282420
b) 40320
c) 362880
d) 6720
11. The length of a line joining the point A (1,2) and B (5,2) is
a) 4
b) 6
c) 5
d) 2
12. The gradient of the line joining A (4, ) and B (9,15) is
a) 12.9
b) 7/5
c) 1/5
d) ¼
13. The equation of the line given its gradient passing through the point 4, (4,3) is
a) 4x-2y-1=0
b) 4x-y-1=0
c) 4x-4y-2=0
d) 6x-2y-1=0
14. The intersection of the following pairs of lines x+y=0, y=-7 is
a) (7,-7)
b) (5,-5)
c) (-3,4)
d) (-7,7)
15. The gradient function of the curve y=3x7
a) 21x5
b) 21x6
c) 3x6
d) 2x6
16. The coordinates of the curve y=2x2+5x-2 where the gradient is zero is
a) (-2.5,-7.5)
b) (-2.5,-8.25)
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c) (75,-8)
d) (5,4)
17. The value of X for which the derived function dy/dx=2x-5 is zero and the
corresponding graph has the highest and the lowest point for x is
a) -1.5, lowest
b) 2.5, lowest
c) 2.5, highest
d) none of the above
18. Given y=x3-x4-1, when x=3/4 the value y will take is
a) Maximum
b) minimum
c) negative
d) positive
19. The area under y=4x3+8x2 from x=-2 to x=0 is
a) 4.5
b) 5.5
c) 6.5
d) 7.5
20. In how many ways can 4 letters of the word BRIDGE be arranged in a row, if
no letter is repeated?
a) 720
b) 360
c) 24
d) 420
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COMPETITIVE ENTRANCE EXAMINATION INTO HTTTC BAMBILI
SESSION: 2014
FIRST CYCLE: First Year
ECONOMICS
Time allowed: 3Hours
INSTRUCTIONS: in your answer booklet, write only the letter of the answer chosen
against the question number. The question paper must be submitted together with the
answer booklet. Each question carries one mark.
PART I: ECONOMICS.
1. The following are hypothetical exchange rates: 2 euros = 1 pound; $1 = 2
pounds. We can conclude that A. $1 = 4 euros B. $1 = .5 euros C. 1 euro = $.50
D. 1 euro = $2.
2. The price elasticity of umbrellas is 0.80. Assuming no change in the demand
curve for umbrellas, a 16% increase in sales implies a: A) 1% reduction in price
B) 12% reduction in price C) 40% reduction in price D) 20% reduction in price.
Answer question 3 and 4 on the basis of the following information. The demand for
commodity X is represented by the equation P = 10 – 0.2Q and supply by the
equation P = 2+ 0.2Q.
3. Refer to the above information. The equilibrium quantity is:
A) 10 B) 20 C) 15 D) 30.
4. Refer to the above information. The equilibrium price for X is:
A) 2 B) 4 C) 6 D) 7.5.
The economy is in a recession. The government enacts a policy to increase spending
by 2 billion. The MPS is 2.
5. What will be the full increase in real GDP from the change in government
spending assuming that the aggregate supply curve is horizontal across the range
of GDP being considered?
A) 6 billion
B) 8 billion
C) 16 billion
D) 10 billion.
6. As a result of a decrease in the price of rice, consumers buy more rice and more
fish. This is an illustration of:
A) Irrational consumer behavior
B) Income effect
C) Changing tastes and preferences
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D) The substitution effect.
7. For a linear demand curve:
A) Elasticity is constant along the curve
B) Elasticity is unity at every point on the curve
C) Demand is elastic at low prices
D) Demand is elastic at high prices.
8. At each point on an indifference curve:
A) Money income is the same
B) The prices of the two products are the same
C) Total utility is the same
D) Marginal utility is the same.
9. Assume for a competitive firm that MC = AVC at 12, MC = ATC at 20 and MC
= MR at 16. This firm will:
A) Realize a profit of 4 per unit of output
B) Maximize its profit by producing in the short run
C) Minimize its losses by producing in the short run
D) Shut down in the short run.
10. Allocative efficiency is achieved when the production of a good occurs when:
A) P = minimum ATC
B) P = MC
C) P = minimum AVC
D) Total revenue is equal to TFC.
11. When the pure monopolist’s demand curve is elastic, marginal revenue:
A) May be either positive or negative
B) Is zero
C) is negative
D) is positive.
12. In drawing a budget line, it is assumed that:
A) Consumer preferences are fixed
B) The prices of the two products are variable
C) Money income is fixed
D) Consumer willingness to substitute between the two products is fixed.
13. The slope of the budget line reflects the:
A) Desirability of the two products
B) Price ratio of the two products
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C) Amount of the consumer’s income
D) Unity ratio of the products
14. When economists refer to “investment”, they are describing a situation where:
A) People are buying shares of corporate stock
B) Resources are devoted to increasing future output
C) Money is saved in a bank account
D) Financial assets are purchased in the hope of a monetary gain.
15. Che sells 100 Frs. Worth of cotton to Ayuk. Ayuk turns the cotton in cloth,
which he sells to Camille for 300. Camille uses the cloth to make Xmas dresses
that she sells to Donita for 700. Donita sells the dresses for 1200 to Kids. The
total contribution to GDP of this series of transactions is
A) 1200 B) 500 C) 2300 D) 1100.
Answer questions 16, 17 and 18 on the basis of the following data. All figures
are in thousands of dollars.
Gross investment $18
National income 100
Net Exports 2
Personal Income 85
Personal Consumption Expenditures 70
Saving 5
Government Purchases 20
Net Domestic Product 105
Statistical Discrepancy 0
16. The gross domestic product for the above economy is:
A) 100 B) 95 C) 110 D) 107.
17. Refer to the above data. Disposable income is:
A) 83 B) 73 C) 75 D) 77.
18. Refer to the above data. From this information we can conclude that the net
foreign factor income is:
A) Negative 5 million
B) Zero
C) Positive 5 million
D) Positive 15 million.
19. The phase of the business cycle in which real GDP declines is called:
A) The peak
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B) An expansion
C) Recession
D) The trough.
20. For all levels of income to the left of the intersection of the 45 degree line and
the consumption schedule, the APC is:
A) Greater than 100%
B) Less than the APS
C) Equal to the MPC
D) Equal to 100%.
21. At the point where the consumption schedule line intersect the 45-degree line:
A) MPC is 1.00
B) APC is 1.00
C) Saving is equal to consumption
D) Economy is in equilibrium.
22. The reserves of a commercial bank consist of:
A) The amount of money, market funds it holds
B) Deposits at the Central Bank and vault cash
C) Government securities that the bank holds
D) The bank’s net worth.
23. Suppose NFC bank has excess reserves of 4,000 and outstanding checkable
deposits of 80,000. If the reserve equipment is 25%, what is the size of the
bank’s actual reserves?
A) 16,000 B) 84,000 C) 24,000 D) 20,000.
24. In economics, a group of firms that produce identical or similar products is
called:
A) Industry
B) Plant
C) Conglomerate
D) Firm.
25. Assume that in year 1 you pay ban average tax rate of 20% on a taxable income
of 20,000. In year 2, you pay an average tax rate of 25% on a taxable income of
30,000. Assuming no change in tax rates, the marginal tax rate on your
additional 10,000 of income is:
A) 5% B) 12% C) 35% D) 42%.
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PART II: MATHEMATICS
In the XY-plane, the curve with parametric equations X=Cost and Y=Sint, 0
≤ t ≤ π, has length: A. 3 B. π C. 3π D. 4π E. π/2
1- Which of the following is an equation of the line tangent to the curve of y =
x + ex at x = 0?
A. y = x
B. y = x + 1
C. y = x + 2
D. y = 2x
E. y = 2x + 1
3
2- ∫−3|𝑥 + 1| 𝑑𝑥 = A. 0 B. 5 C. 10 D. 15 E. 20.
3- A total of x meters of fencing is to form three sides of a level rectangular
field. What is the maximum possible area of the field, in terms of x?
A. x2/9 B. x2/8 C. x2/4 D. x2 E. 2x2
4- If f(1) = 2 and f(n) = f(n-1) + ½ for all integer n>1, then f(101) =
A. 49 B. 50 C. 51 D. 52 E. 53
1 𝑋 𝜋 √2
5- ∫0 = A. 1 B. C. tan−1 D. ln2 E. ln√2
1+ 𝑥 2 4 2
6- A drawer contains 2 blue, 4 red and 2 yellow socks. If two socks are to be
randomly selected from the drawer one at a time without replacement, what
is the probability that they will be the same colour?
A. 2/7 B. 2/5 C. 3/7 D. ½ E. 3/5
7- If g is a function defined on an open interval (a,b) such that a< g(x)<x for all
x∈(a,b), then g is
A. an unbounded function
B. a non-constant
C. a non-negative function
D. a strictly increasing function
E. a polynomial function of degree 1
8- Assume that P is a polynomial function on a set of real numbers. If
2
P(0)=P(2)=3 and P1(0)=p1(2)=-1,then ∫0 𝑥𝑃11 (𝑥)𝑑𝑥 =
A. -3 B. -2 C. -1 D. 1 E. 2
9- A fair coin is to tossed 8 times. What is the probability that more of the
tosses will result in heads than will result in tails?
A. 1/4 B. 1/3 C. 87/256 D. 23/64 E. 93/256
50
11- If 4x2=25(y2+2) then =
2𝑥+5𝑦
A. x+y B. 2x-5y C. 2x+5y D. x-y E. x
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1
12- F(x)=x2+ x+k is the equation of a quadratic function with a graph that
2
passes through the x-axis when x=3. What is the value of k?
A. 21/2 B. 9 C. -21/2 D.-9 E. -21
𝑥2+ 1 9 36 9
13- (𝑋+3)(𝑋−2)
is equivalent to A. x-1 + + B. x+
5(𝑥−2) 5(𝑥+3) 5(𝑥−2)
26 9 26 9 26
+ C. + D. x-5 + +
𝑥+3 5(𝑋−2) 5(𝑋+3) 𝑥−2 5(𝑥+3)
1 1
E. x-26 + +
𝑥−2 𝑥+3
1−𝑐𝑜𝑠𝜃
14- Evaluate lim = A. 1 B. 0 C. 1/2 D. -1/2 E. -4
𝜃→0 𝑠𝑖𝑛2 𝜃
1−𝑥 2
15- lim = A. 4 B. 0 C. 3 D. -3 E. -4
𝑥→1 1−𝑥
16- log10 5 +2log10 𝑥 +log10 𝑦 simplifies to
A. 5+2x+y B. 5+x2+y C. log10 5𝑥 2 𝑦 D. log10 5𝑥𝑦 2
17- The set of values of x for which (x-3)(x-4)< 𝑥 − 3 is
A. x< 4 B. x > 4 C. 5< 𝑥 < 3 D. 3< 𝑥 < 5
18- How many 4 digit numbers can be formed from the numbers 1,2,3,4 and 5
if repetition is not allowed? A. 625 B. 256 C. 120 D. 28
2𝑥 3 +𝑥 2 −2𝑥+1
19- The oblique asymptote of the curve y= is
2(𝑥 2 −1)
A. y = x+2 B. y=x C. y=x+1/2 D. y=2x+1
20-The sequence whose sum is given by Sn=n(2n+1) is
A. a G.P B. an A.P C. an infinite sequence D. a finite sequence
21- The probability that today is a bright day is 0.4. The expected numbers of
bright days in a week are: A. 4 B. 2.8 C.0.4 D.3.8
𝑥𝑚
22-Let y= where n and m are natural numbers. Then y has a stationary
(1−𝑥)𝑛
𝑚+𝑛 𝑛 𝑛 𝑛+1
point at A. B. C. D.
𝑚 𝑚+𝑛 𝑚+𝑛 𝑚+𝑛
23-The random variable X~Bin(n,p). If E(X)=2 AND Var(X)=24/13 then the
value of n and p are A. n=26 p=1/13 B. n=2.2 p=12/13 C. n=26
p=12/13 D. n=2.2 p=1/13
2−2𝑖 √3
24-Express in the form a+ib: A. 2 B. 0=2i C. 2+4i D.
√3+𝑖
1=2i
25-Given that x3+ax2 +bx-2 exactly divides x2-1, the sum of a and b is
A. 1 B. -1 C. 7 D. 0
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THE UNIVERSITY OF BAMENDA
HIGHER TECHNICAL TEACHER’S TRAINING COLLEGE BAMENDA-BAMBILI
ENTRANCE EXAMINATION INTO FIRST YEAR OF FIRST CYCLE 1
SESSION: 2013
MAJOR: ECONOMICS
1. The owners of a corporation are;
A. The owners of a corporation’s common stock;
B. The owners of the bonds issued by the corporation;
C. The corporation board of directors;
D. The managers of the corporation.
2. The consumer price index and the GDP deflator are designed to measure the
degree to which;
A. There have been changes in the proportions of national income generated by
the rich relative to the poor;
B. The cost of purchasing a bundle of goods has changed over time;
C. Consumption pattern has changed over time;
D. Consumer prices have risen over and above in crease in worker wages.
3. The main factors responsible for a change in the demand for a commodity
would include all of the following except;
A. A change in consumers’ tastes;
B. A change in consumers’ incomes;
C. A common stockholders change in the prices of related goods;
D. A change in the price of the commodity
4. Which of the following would be considered an automatic fiscal stabilizer? A.
Unemployment;
B. Taxes that depend on the level of income;
C. Relief payments;
D. All of the above.
5. A rising GNP without a correspondent increase in money mass (M) WILL tend
to;
A. Rise the price level;
B. Raise interest rates;
C. Lower interest rates;
D. Lower velocity.
6. For a firm to maximize it must;
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A. Charge the highest price possible for the goods or services;
B. Produce its output at the lowest possible cost;
C. Being a price taker;
7. The short run supply curve competitive firm will have;
A. Marginal cost curve above its variable unit cost curve;
B. Its mc curve above its fixed unit cost curve;
C. Determined by the demand firm’s products;
D. Both A and B.
8. The long run effect of an increase in the money supply includes;
A. An increase in the price level but no change in output;
B. An increase in output but no change in the price level;
C. An increase in both the price level and output;
D. No change in neither the price level nor output
9. Given that personal consumption expenditure is 505.9 billion, government
expenditure 186.7 billion, personal saving 8.5 billion, investment 140.3 billion
and imports and GDP 329.1 billion and 155.1 billion respectively. Calculate the
disposable income;
A. 514.4 billion;
B. 654.7 billion;
C. 855.1 billion;
D. 832.9 billion.
10. A downward sloping long run supply curve for a purely competitive industry is
caused by;
A. Downward sloping supply curve for all of the firms in the industry;
B. Decreases in the factors caused as the industry expands;
C. Government price ceiling;
D. The over entry of firms into the industry.
11. Under conditions of monopoly, as compared with pure competition,
A. Price is higher and output is higher;
B. Price is higher and output is lower;
C. Price is lower and output is lower;
D. Price is higher and output is the same.
12. If the minimal interest rate is 8% and prices are rising at 5% per year, the real
interest rate is;
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A. 8%; B. 3%; C. 13%; D. -3%.
13. Advertising may provide a basis in that it;
A. Establish strong brand loyalty amongst consumers;
B. Attract counter advertising by competitors;
C. Diminishes the elasticity of demand for the firm’s products;
D. Both A and C.
14. The so-called “Iron law of wages” is most closely associated with which of the
following theories of wages determination;
A. The Subsistence theory;
B. The bargaining theory;
C. The Lump of labour theory;
D. The Marginal productivity theory.
15. The ability to pay principle always implies that taxes should be;
A. Progressive;
B. Proportional;
C. Regressive;
D. Lump sum.
16. A tariff is a tax on; A. Imports designed to restrict imports; B. Exports designed
to restrict imports; C. Exports designed to restrict exports; D. Any luxury goods.
17. “The national debt is too large; the government must stop spending too much
money”. This statement is;
A. A normative statement;
B. A positive statement;
C. A testable statement;
D. Both B and C.
18. If Suzan bought nine gallons of gasoline at £1.50 per gallon, the car wash cost
£1.0, but if she bought ten gallons of gasoline, the car was free. Given that Suzan
is going to get the car wash, the marginal cost of the tenth gallon of the gasoline
is:
A. Zero; B. £0.50; C. £1.00; D. £1.50.
19. Mr. Anzah advertises his used car for €3000 in a news paper. He will be willing
to sell it for as low as €2000. He is offered €2600 for it by a local buyer of which
Mr. Anzah accepts it. In this transaction he receives;
A. Producer surplus of €3000;
B. Producer surplus of €2600;
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C. Producer surplus of 600;
D. Consumer surplus of €400.
20. Which of these is not a study macroeconomics?
A. The determinants of inflation;
B. The relative market shares of CAMSUCO and Cameroon Railways company;
C. The growth of production in Zambia;
D. The amount of imports and exports between Egypt and Britain.
ECONOMICS 2
For each question, select the best answer and record your choice on the
Response Form provided. Using a blue pen, completely star the box that has the letter
corresponding to your answer. You must submit your question paper together with the
Response Form. Nothing should be written on the question paper.
1. Which of the following is a non-economic want?
A. A steady job
B. A change for more pay
C. Health insurance
D. Personal freedom.
2. Salaries are accountants tend to go up when
A. There are not enough jobs for accountants to fill
B. There are not enough accountants to fill jobs
C. Many accountants graduate from college
D. There are enough jobs for accountants to fill.
3. In an economy, profits are
A. Incentives for going into business
B. A measure of efficiency
C. A reward for taking business risks
4. A person’s standard of living means
A. The amount, quality and variety of things he can buy
B. The amount, quality and variety of things in the market
C. The amount, quality and variety of things he needs and wants
D. The amount, quality and variety of things he can produce.
5. Which of the following is not a reason for increased output per worker? A.
Better management methods
B. Advances in science and technology
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C. More people employed
D. Competition and personal incentive.
6. There is a maximum money flow in an economy when
A. The government taxes more than it spends
B. Savings are greater than investments
C. Consumer, business and government are spending at a greater rate
D. People are hoarding money.
Question seven and eight are based on the financial structure of Afriland ltd as
presented below; 100,000, 7.5% preference shares of 1000fcfa each; 50,000, 8%
debentures at 1000fcfa each; 200,000 ordinary shares at 1000fcfa each. After paying for
all expenses, 31.5 million fcfa remained to be distributed.
7. The rate of dividend that will be paid to ordinary shareholders would be A.
12.5% B. 10% C. 0.8% D. 12%.
8. If ordinary shares are quoted at 500fcfa, the current yield would be
A. 12.5% B. 20% C. 15% D.10%.
9. What is most likely to make the demand for good x to be inelastic?
A. Good x is a luxury good
B. The proportion of income spent on good x is very high
C. There are a large number of substitutes for good x
D. Good x is habit-forming.
10. Assume the price elasticity of demand for the best quality South African wine
is zero. What would be the effect in Cameroon if the government imposed a
tariff on such wine?
A. The price of wine will rise by an amount less than the tariff
B. Demand for the wine will fall
C. Expenditure on wine will rise
D. Sales of the wine will cease.
11. If the cross elasticity of demand of good x in respect to good y is zero, then
x and y are
A. Substitute goods
B. In competitive demand
C. Complementary goods
D. Independent goods.
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12. A 5% increase in a firm’s output results in a 5% increase in its sales revenue.
What can be deduced about the price elasticity of demand for the firm’s
product?
A. It is equal to one
B. It is infinity
C. It is equal to zero
D. Nothing without information on the change in price.
13. If the demand curve for a normal good is linear, the price elasticity of demand
for the good
A. Decreases as the amount bought increases
B. Increases as the amount bought increases
C. Is unitary
D. Is always greater than one.
14. If the Marginal Utility (MU) of a good to consumer y is 0, it must follow that
A. Total utility for the good is at a maximum
B. Total utility is also 0
C. The good gives no satisfaction
D. The consumer is in equilibrium with respect to the purchases of the good.
15. The theory that explains the fluctuation in the prices of agricultural products
is
A. Malthusian theory
B. Cobweb theory
C. Keynesian theory
D. Classical theory.
16. The least cost combination in output requests that
A. MUA/MUA=MUB/MUB=MUC/MUC
B. MRS=MRT
C. MPPA/PA=MPPB/PB=MPPC/PC
D. TR=TC.
17. Which of the following could result in the monopolist being a price taker
A. The existence of potential competition
B. The absence of substitute goods
C. A maximum price set by the government
D. Constant returns to scales.
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18. A perfectly elastic firm is producing two thousand packets of match a week
which sells at 250frs per packet. The table below shows costs. Total fixed
cost=200000frscfa; Total variable cost=400000frscfa; Marginal
cost=250frscfa. In the short run, what should the firm do to maximize its
profits or maximize its losses?
A. Cease production altogether
B. Increase its output
C. Lower its price
D. Maintain output at the present level.
19. Which of the following may be found in oligopoly but not monopolistic
competition?
A. Excess capacity
B. production differentiation
C. Advertisement
D. Collusion.
20. What will be the immediate impact if average earnings increase by less than
increase in labour productivity?
A. A reduction in profit margin
B. A reduction in real wages
C. A reduction in unemployment
D. A reduction in unit labour cost.
21. A reward which is only earned during a period which must elapse before
supply increases
A. Wage drift
B. Quasi rent
C. Real profit
D. Labour turnover.
22. What is the share of profit which ordinary shareholders receive called?
A. Interest
B. Returned profit
C. Dividend
D. Normal profit.
23. The central bank controls the activities of other banks by all but one of the
following means:
A. The use of minimum lending rate
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B. Special deposits
C. Use of directives
D. Taxation.
24. A commercial bank is able to create money by;
A. Printing it
B. Maintaining reserves
C. Creating a demand deposit as it gives a new loan
D. Issuing cheques to depositors
25. Money becomes a poor store value in a period of;
A. Stable price
B. Inflation
C. Deflation
D. Recession.
GEOGRAPHY (ECONOMICS MINOR)
26. Oxygen and nitrogen gases together make up approximately ------ the
atmosphere
A. 10% B. 25% C. 50% D. 99%.
27. Which atmospheric layer is adjacent to the earth’s surface?
A. Troposphere
B. Stratosphere
C. Ozone layer
D. Outer space.
28. ------ is the force that the atmosphere exerts on objects and particles it
contacts
A. Temperature
B. Humidity
C. Condensation
D. Air pressure.
29. Te outermost layer of the solid earth which is the source of almost all rocks
and fuel resources is termed
A. Asthenosphere
B. Outer core
C. Mantle
D. Crust.
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30. The down slope flow of cold, dense air that has accumulated in a high
mountain valley or over an elevated plateau or ice cap is called
A. Katabatic
b. Monsoon
C. Anabatic wine
D. None of the above.
31. The total amount of living material in an ecosystem is termed-----
A. Biomass
C. Nutrient flow
D. Productivity.
32. ------ ecosystems contain the highest rate of productivity
A. Coniferous ecosystem
B. Desert and open sea ecosystem
C. Tropical, tropical deciduous and temperature deciduous ecosystems D.
Tundra and mountain ecosystem.
33. The downward removal of solid components in a soil by water is called -----
A. Illuviation
B. Eluviation
C. Leaching
D. Stratification.
34. Ferrallitic indicates the presence of -----
A. Iron and silica
B. Iron and potassium
C. Iron and magnesium
D. Iron and alluminium.
35. What are endemic species?
A. Those found in deserts and semi deserts
B. Indigenous species not found everywhere
C. Endangered species
D. Those found everywhere.
36. “Geological operating at present are the same processes that have operated
in the past” What is this principle?
A. Correlation
B. Isotacy
C. Catastrophism
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D. Uniformitarianism.
37. What is the temperature of the earth’s core?
A.12000C B.85000C C.5000C D.50000C
38. The greenhouse effect is mostly related to---
A. The nutrient enrichment of water
B. Increase in atmospheric carbon dioxide
C. The return of heated water to the environment.
39. The independent sections of the lithosphere are called -------------
A. Upper mantle
B. Plates
C. Outer core
D. Inner core.
40. The underwater mountain ranges along the center of the oceans are called -
----------
A. Mid ocean ridges
B. Ocean trench
C. Fold Mountain
D. Ocean guyot.
41. An example of a place where a continent is currently splitting apart is called-
----------
A. West Africa
B. East Africa
C. South Africa
D. North Africa.
42. A Richer scale 8 earthquake is how many times more powerful than a Richer
scale 4 earthquake?
A. 2 B. 4 C. 32 D. 10,000.
43. Which type of faulting occurs when tension forces within earth are pulling
rocks apart?
A . Reverse fault
B. Normal fault
C. Over trust fault
D. Strike-slip fault.
44. The -------- is on the surface of the earth; it is directly above an earthquake’s
focus.
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A. Center
B. Epicenter
C. Mantle
D. Seismic waves.
45. A----- type of volcano is found at mid ocean ridges.
A. Shield volcano
B. Strato volcano
C. Ash and cinder cone
D. Acidic lave dome.
46. What is lahar?
A. Molten rock above the surface of the earth
B. Molten rock below the surface of the earth
C. Volcanic debris mixed with water causing mudslide
D. Foam created by polluted rivers.
47. When did the lake Nyos gas disaster take place?
A. 1996 B. 1995 C. 1986 D. 1985.
48. Which of the following best describes weathering?
A. The removal of minerals from surface rocks by soil water
B. The alternate heating and cooling of rocks
C. The freezing of water in rock cracks
D. The slow breakup of rocks exposed at ground level.
49. Te following are all forms of mass wasting except -------
A. Abrasion
B. Soil creep
C. Earth flow
D. Rock fall.
50. An area of ground that contributes runoff to a body of water is called-----
A. Catchment basin
B. Drainage basin
C. Watershed
D. None of the above.
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HIGHER TEACHER’S TRAINING COLLEGE BAMBILI
COMMON ENTRANCE EXAMINATION; FIRST CYCLE.
SESSION 2012
PAPER: ECONMICS (MAJOR),
DURATION: 3 HOURS.
INSTRUCTIONS: Attend all questions in the order in which they appear.
Be very brief and straight to the point with your answer. Do not copy any
question. Question 1 to 6 shows the number of farmers employed to produce Irish
potatoes on a given piece of land (output is in metric tones).
NO OF 10 20 30 40 50 60 70 80 90 100
FARMERS
TOTAL 100 150 270 400 650 850 1000 1120 1200 1150
PRODUCT
1. Draw a table to show the average product and marginal product at each level of
employment.
2. Identify the 3 stages of production
3. State which of them is most economical and why?
4. Describe the relationship between marginal and total products
5. In one sentence state the law of diminishing returns
6. State under what period of time the law is applied?
7. Distinguish between explicit and implicit cost
8. Earnings from primary products are often unstable because:
a) Demand is price elastic
b) Supply is price elastic
c) Supply conditions are relatively stable
d) Supply conditions are unstable
9. Which of the following is not one of the four Ps in marketing?
A) Product
b) Price
c) Place
d) Presence
10. If the value of the FCFA in other currencies is strong:
a) The price of CAMEROON products abroad in foreign currency will fall
b) The price of CAMEROON products abroad in foreign currency will rise
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c) The price of Cameroon product products in Cameroon will rise
d) The price of Cameroon products in Cameroon will fall.
11. To prevent the exchange rate from rising, the government could:
a) Sell its own currency
b) Increase interest rates
c) Buy its own currency
d) Sell foreign currency.
12. An appreciation of the currency may occur if:
a) Domestic interest rates fall
b) There is an increase in demand for imports
c) There is an in demand for exports
d) There is an increase in balance of the payments deficit.
13. In marketing ”USP” stand for
a) Unit selling proposition
b) Underlying sales pitch
c) Unit sales point
d) Under sales procedure.
14. Effective branding will tend to make
a) Demand more price inelastic
b) Supply more price inelastic
c) Demand more income elastic
d) Supply more income elastic.
15. To prevent the external value of the currency from falling the government might
a) Reduce interest rates
b) Sell its own currency
c) Buy its own currency with foreign reserves
d) Increase its own spending.
16. Which of the following would increase aggregate demand?
a) Increased saving
b) Increasing import spending
c) Increased taxation revenue
d) Increased investment.
17. Improved training of employees would
a) Shift aggregate supply to the right
b) Shift aggregate supply to the left
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c) Shift aggregate demand to the right
d) Shift aggregate demand to the left.
18. In a recession
a) Unemployment is likely to be low
b) Prices are likely to increase
c) Growth is negative
d) Growth is slow.
19. To adjust GDP from market price to factor cost
a) Add indirect taxes
b) Subtract subsidies
c) Deduct indirect taxes and subsidies
d) Deduct indirect taxes and add subsidies.
21. An increase in national income is likely to
a) Decrease recerats
b) Worsen the balance of trade
c) Automatically cause an increase in government spending
d) Cause an increase in injections into the economy.
22. Which of the following is an injection into the economy?
a) Investment
b) Savings
c) taxation
d) Import spending.
23. Which of the following is a policy instrument as opposed to a government
objective?
a) Lower interest rates
b) A better balance of trade position
c) Faster economic growth
d) lower unemployment.
24. If injections are greater than withdrawals:
a) National income will increase
b) National income will decrease
c) National income will stay in equilibrium
d) Prices will fall.
25. Injections are:
a) Assumed to be exogenous
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b) Assumed to be a function of national income
c) Decrease aggregate demand
d) Decrease the investment into an economy.
26. “Reducing inflation is a more important objective than economic growth” is an
example of
a) Normative economics
b) Positive economics
c) Objective economics
d) Reality economics.
27. The Marginal Revenue Product is:
a) Upward sloping due to the law of demand
b) Upward sloping due to the law of marginal utility
c) Downward sloping due to the law of diminishing returns
d) Downward sloping due to the law of supply.
28. A profit maximizing firm will employ labour up to the point where:
a) Marginal revenue=marginal product
b) Marginal cost=marginal product
c) Marginal; revenue product=average cost of labour
d) Marginal revenue product=marginal cost of labour.
29. In a perfect competitive labour market firms are wage takers and the marginal
cost of labour equals:
a) The average cost of labour
b) The marginal product
c) The marginal revenue
d) Total cost of labour.
30. If minimum wage is set above the minimum wage rate, then other things
unchanged:
a) There will be equilibrium in the labour market
b) There will be excess demand in the labour market
c) There will be excess supply in the labour market
d) More people will be employed.
31. In the kinked labour theory:
a) There is a kink in the marginal cost curve
b) Demand is price inelastic
c) Demand is elastic
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d) Non price competition is likely.
32. An example of backward vertical integration is:
a) A supermarket buying a farm
b) A supermarket buying another supermarket
c) A supermarket buying an insurance company
d) A supermarket buying a car.
Questions 33 to 36 are based on the following information concerning the demand
and supply of meat. There are 100 identical buyers and 100 identical suppliers of meat.
The individual demand function is given as 2PX-4 where PX is the price of meat.
33. Write down the market demand function for meat?
34. Write down the supply function for meat?
35. Derive the market price and quantity of meat
36. What are the consequences of a price one unit below the market price?
37. What are the three basic languages used in studying economics?
38. Which best describes price discrimination?
a) Charging different prices for different products
b) Charging the same prices for different products
c) Charging the same prices for the same products
d) Charging different prices for the same products.
39. For a firm operating in two markets and price discrimination the profit
maximizing condition is:
a) Marginal revenue in A=price
b) Marginal revenue in A=Marginal revenue B=price A=Price B
c) Marginal revenue in A=Marginal revenue in B=Marginal cost
d) Marginal revenue in A=Marginal revenue in B= Average cost.
40. A politician proposes reducing business taxes, a move she says will encourage
risk-taking entrepreneurship. This proposed cut in business taxes is significant in
the economy mainly trough-------------
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ENTRANCE INTO H.T.T.T.C BAMBILI JULY
SESSION 2011
ECONOMICS MAJOR
INSTRUCTIONS: ATTEMPT ALL QUESTIONINTHYE ORDER IN WHICH
THEY APPEAR. WRITE DOWN THE ANSWER ONLY. DO NOT COPY ANY
QUESTION OR MAKE SENTENCES WHERE NOT REQUIRED.
1. The effect of an increase in the proportional taxes on the consumption is to
a) Increase the MPC out of the national income
b) Increase the MPS out of national income
c) Decrease the MPC out of national income
d) Leave the MPC unchanged out of national income.
2. If the MPC for economy is 0.8,
a) The multiplier is 1.25
b) The multiplier is 5
c) The multiplier is undefined
d) The MPS is 0.4
3. Suppose that a Brazilian firm imports Japanese microchips. The transaction will
appear
a) On neither company’s balance of payment accounts
b) As a debit on the Brazilian balance of payments
c) As a debit on the Japanese balance of payment.
4. A current account deficit implies that
a) Spending exceeds income
b) Income exceeds spending
c) Exports exceeds imports.
5. The competitive firm maximizes profit when it produces output up to the point
where
a) Price equals average variable cost
b) Marginal cost equals marginal revenue
c) Marginal revenue equals average revenue
d) Marginal cost equals total revenue.
6. A market structure in which many firms sell products that are similar but not
identical is known as
a) Monopolistic competition
b) Monopoly
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c) Perfect competition
d) Oligopoly.
7. Which of the following is not a characteristic of a monopolistically competitive
market?
a) Free entry and exit
b) Long run economic profits
c) Many sellers
d) Differentiated products.
8. In terms of demand for money, the interest rate represents
a) The price of borrowing money
b) The return on money that is saved for the future
c) The opportunity cost of holding money.
9. If the quantity of money demanded exceeds the quantity of money supplied, then
the interest rate will
a) Change in an uncertain direction
b) Rise
c) Fall
d) Remain constant.
10. All of the following hinder economic growth in the LDCs, except
a) A strategy of import substitution
b) High rates of population growth
c) The need to borrow huge amounts of financial capital from abroad
d) inefficiencies in the use of its scarce productive resources.
11. For a firm that is a price taker in its output market, the marginal revenue product
of a factor is formed by multiplying the:
a) Marginal physical product of that factor and marginal revenue
b) Marginal factor cost and marginal revenue
c) Marginal cost and average revenue.
Questions 12,13,14,15 are based on the information below about the accounts of
a particular country.
MFCFA
Visible exports 2560
Visible imports 2620
Transfers 50
Interests, profits and dividends 70
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Services 90
Net transactions -200
12. What is the balance of trade?
13. What is the visible balance?
14. What is the current account balance?
15. What is the balance item?
16. For a price taking firm in both the input markets, the MRP curve for labour
slopes downward because:
a) The of diminishing marginal productivity of labour
b) The output price rises as the output level rises
c) The wage rate rises as the amount of labour rises.
17. One country enjoys the comparative advantage over another in producing oil
when:
a) It has more oil than the other country
b) It does not need to import oil
c) None of the above.
18. As more labour is added to a fixed amount of input, the rate at which output
goes up begins to decrease. This is called
a) Diminishing marginal utility
b) Diminishing marginal productivity
c) Diminishing marginal cost.
19. The rate at which a firm can substitute one factor for another while still
producing the same level of output is known as--------.
20. The sum of the quantities supplied by all the firms in the market at each and
every price is called--------.
21. When you add the value of all final sales, what are you calculating?
22. Good s used to produce other goods are known as--------.
ANSWER True or False in questions 23 to 26.
23. The higher the MPC, the smaller the resulting multiplier.
24. A price ceiling is an imposed price above equilibrium price.
25. When supply and demand both increases, equilibrium price will always increase.
26. Sometimes an increase in income causes demand for a good to fall
27. A 20% share, face value of 1000f has a market value of 1600f. Calculate its yield.
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Questions 28, 29, 30, 31, are based on a “quantity theory” economy which adjust
instantaneously to equilibrium and has a constant velocity of circulation of 04. The
following observations relates to consecutive years.
Year 1 year 2
Nominal interest rate 9 9
Nominal money supply 2000 2200
Real income 4000 4065
28. Calculate the growth rate of nominal money supply.
29. What was the rate of inflation between year 1 and year 2?
30. Calculate the real money in year 1.
31. Calculate the real money in year 2.
Questions 32, 33, 34, 35 are based on the following table, with time periods T 1 to
T2,price of goods X(px) and Y(py), quantity demanded of X(qx) and income of
consumer.
Period PX QX PY Income
T1 25 100 50 1000
T2 40 125 50 1000
T3 40 125 50 1500
T4 40 130 50 1550
T5 40 135 50 1550
32. Find the price elasticity of X.
33. Find the income elasticity of X.
34. Find the cross elasticity of good X with respect to the price of good Y.
35. What is the relationship between X and Y?
36. Economic growth is depicted by
a) A shift in the production possibility frontiers outward
b) A movement along a production possibilities frontier toward capital goods
c) A movement from inside the curve toward the curve
d) A shift in the production possibilities frontier inward.
37. Which of the following will not shift a country’s production possibility frontier
outward?
A) An advanced in technology
b) An increase in labour force
c) An increase in the capital stock
d) A reduction in unemployment.
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38. Which of the following is part of the opportunity cost of going on holiday?
a) The money you spent on a theatre show
b) The money you could have made, if you had stayed at home and worked
c) The money you spent on airline tickets.
39. Positive statements are:
a) Macroeconomics
b) Microeconomics
c) Statements of description that can be tested
d) Statements of prescription that involve value judgments.
40. Which of the following statements about microeconomics and macroeconomics
is not true?
A) The study of very large industries is a topic within macroeconomics
b) Macroeconomics is concerned with economy-wide phenomena
c) Microeconomics is a building block for macroeconomics
d) Microeconomics and macroeconomics cannot be entirely.
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ENTRANCE INTO H.T.T.T.C BAMBILI JULY
SESSION 2010
ECONOMICS MAJOR
INSTRUCTIONS: Attempt all questions in the order in which they appear.
1. Which of the following would you expect to shift the supply curve for household
paints?
A. An increase in housing market activity
B. An increase rate of economic growth
C. An increase in the oil price
D. Increase labour cost.
2. An increase in the demand for a good will tend to cause
A. An increase in the equilibrium price and quantity
B. An increase in equilibrium price and a decrease in the equilibrium quantity
C. A decrease in the equilibrium price and quantity.
3. All of the following are determinants of supply except one:
A. Price
B. Income levels
C. Objectives of the firm
D. Level of technology.
4. If an increase in the price of blue jeans leads to an increase in the demand for
tennis shoes, then the blue jeans and tennis shoes are:
A. Complements
B. Substitutes
C. Inferior goods
D. Normal goods.
5. Stagflation occurs when the economic experiences
A. Rising prices and rising output
B. Rising prices and falling output
C. Falling prices and falling output
D. Falling prices and rising output.
6. For an economy as a whole, income equals expenditure because the income of
the seller must be equal to the expenditure of the buyer.
A. True B. False.
7. An example of a transfer payment is
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A. Profit
B. Rent
C. Unemployment benefits
D. Government purchases
E. Wages.
8. Gross Domestic Product can be measured as the sum of
A. Final goods and services, intermediate goods, transfer payment and rent
B. Consumption, investment, government purchases and net exports
C. Consumption, transfer payments and wages.
9. If your grand parents buy a newly built retirement home, this transaction would
affect
A. Investment
B. Net export
C. Government purchases
D. Consumption.
10. If a cobbler buys leather for 1000frs and thread for 500frs and uses them to
produce and sell 5000frs worth of shoes to consumers the contribution to GDP
is
A. 500fcfa
B. 1000fcfa
C. 6500fcfa
D. 5000fcfa.
11. Consumption surplus is the area
A. Below demand curve and above the price .
B. Above the supply curve and below the price
C. Above the demand curve and below the price.
12. If a benevolent social planner chooses to produce less than the equilibrium
quantity of a good, then
A. Total surplus is maximized
B. The value placed on the last unit of production by buyers exceeds the cost of
production
C. Producers, surplus is maximized
D. Consumer surplus is maximized.
13. An increase in the price of a good along a stationary surplus curve
A. Increases producer surplus
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B. Decreases producer surplus
C. Improves market equity.
14. Demand for a good is likely to me more elastic
A. The smaller the fraction to income absorbed by the good
B. In the short run than in the long run
C. The greater the number of available substitute.
15. Same as question 14.
16. When the central bank lowers the reserved requirement
A. Bank will create more money
B. People will deposit more money
C. Banks must hold less money.
17. Which of the following is most likely to benefit a debtor?
A. Unanticipated deflation
B. Anticipated deflation
C. Unanticipated inflation.
18. What is autonomous consumption?
19. The rate at which a firm can substitute one factor for another while still
producing the same level of output is known as the-----------------.
20. The sum of the quantities supplied by all the firms in the market at each and
every price is called--------------------.
21. When you add the value of all final sales, what are you calculating------------------
--.
22. Goods used to produce other goods are known as--------------.
ANSWER TRUE OR FALSE IN QUESTION 23, 24, 25, AND 26.
23. The lager the MPC, the smaller the resulting multiplier.
24. A price ceiling is an opposed price above the equilibrium price.
25. When supply and demand both increase, equilibrium price will always rise.
26. Sometimes an increase in income causes demand for a good to fall.
27. A 20% share, face value of 1000frs has a market value of 1600frs. Calculate its
yield.
Question 28, 29, 30, 31 are based on a “quantity theory” economy which adjust
instantaneously to equilibrium and has a constant velocity of circulation of 04.
The following observations relates to consecutive years.
Year 1 Year 2
Nominal interest rate 9 9
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Nominal money supply 2000 2200
Real income 4000 4065
28. Calculate the growth rate of nominal money supply.
29. What was the rate of inflation between year 1and year 2.ans
30 Calculate the real interest rate in year 2 Ans.
31. Calculate the real money in year 1 Ans.
Questions 32, 33, 34, 35, are based on the following table, with time periods T1 to T5,
prices of goods X (PX) and Y (py), quantity demanded of X(9X) and income of
consumer.
Period Px Qx Py Income
T1 25 100 50 1000
T2 40 125 50 1000
T3 40 125 50 1500
T4 40 130 50 1550
T5 40 135 50 1550
32. Find the price elasticity of X.
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UNIVERSITY OF YAOUNDE I
ECOLE NORMALE SUPRIEURE ANNEXE DE BAMBILI
COMMON ENTRANCE EXAMINATION JULY
SESSION 2009
ECONOMICS MAJOR;
SECTION A
Write only the word or short phrase to answer.
Section A Do not make explanations.
1. According to you why will more of a good be purchased at a lower price than
when price are high.
2. What type of economics is based on personal opinions?
3. What is the likely effect of establishing a minimum price control above the
equilibrium market price?
4. Give one factor of an inward shift in the demand.
5. A market situation with many sellers and a single buyer is called.
Spending C=Y
C+I
C=C+aY
145
100
Income
6. From these functions Y=C+I,C=CO+ ey and graphical representation above,
the value of I is……………………………and Co
is…………………………………….
7. Say true of false. The impact of a minimum wage is greater when demand for
and supply of labour are inelastic.
8. The decision of what to produce how and for whom is based on the forces of
demand and supply. This is an example of……………………….
9. The market of a discriminating monopoly can be separated in terms of
1…………and 2……….
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10. It is observed in the Malthusian theory that unlike the growth of output,
population was growing at a…………………………..
11. What is the objective or aim of the govemment to create a buffer price scheme?
............
12. In the national income calculation, the difference between the N.N.P and G.N.P
is depreciation. What is another name for depreciation? ...........................
13. Wages are the reward for labour as profits are the reward
for…………………………
14. The world trade organization replaced ……………………………………
15. A deflationary fiscal policy requires lowering ……………………… and more
…………….
16. Question 16 is based on the graphical representation of three tax system, identify
each tax system.
Total Tax A
Paid B
Income
17. Define average fixed cost and average total cost.
18. Any attempts by household to increase saving will instead tend to decrease it.
This is concept of……………………………………….
19. What do you understand by devaluation?
20. The taking over of private enterprise by the government is known
as…………………
SECTION B:
Select and write only the letter A,B ,C or D corresponding for the answer.
21. A consumer presents the following market scale of preference and has an income
of 2350 frs. The price of each product is also given as, rice= 300 , oil= 500,
meat=1500, bitter leaf= 100 and fresh beans= 200.What is opportunity cost of
buying meat?
22. Firms described as price takes result from
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23. Choice is a fundamental problem in economics because
24. Ice in a fish market generally commands a price while in greeland it is plentiful
and be called
25. In a fully planned economy which of these statements would be true
26. The standard of living of a country depends on
27. Which of these statements is not a reflection of a free enterprise economy?
28. The term “over- populated economy” refers to
29. Which of these is likely to result in a new demand curve for superhot mints?
30. An individual consumer’s behavior when making a purchasing decision cannot
be explained by:
31. The value of the spending multiplier relates
Question 32 is based on the graph representing the total product curve below
Output of
Wheat TP2
TP1
Unit of labour
32. The upward shift of the total product curve from TP1 to TP2 is unlikely to
becaused by:
33. If a single product firm diversify into new products and markets, the action is
unlikely to increase the
34. Which of the following does not affect the supply of labour?
35. Which of the gains for a firm from a merger is also in the national interest?
36. The elasticity of demand for a factor will be greater
37. Given tat the marginal propensity to save is 0.25 and that government
expenditure is held constant by how much must taxes be cut in order to cause
consumer expenditure to increase by 600 million FCFA assuming tat other things
are equal?
38. Only one of these statements does not restrict the creation of credits
39. Which one of the following assumptions is not applicable in the theory of
comparative cost advantage?
40. Which of these would you consider as a measure of monetary policy?
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UNIVERSITY OF YAOUNDE I
ENTRANC INTO ECOLE NORMALE SUPRIEURE ANNEXE DE BAMBILI
COMMON ENTRANCE EXAMINATION JULY
SESSION 2008
ECONOMICS MAJOR
INSTRUCTION: Do all your working in rough paper and write only the answer on
the answer sheet. Any answer that exceeds one line for graphs will not be considered.
1. Which is the fundamental economic principle illustrated by the production
possibility curve?
2. What does economic efficiency requires?
3. State in one line what an isoquant represent?
Question 4 and 5 are based on the table below.
Quantity 1 2 3 4 5 6
Mu of A 16 12 8 5 2 1
Mu of B 20 16 10 6 4 0
4. What would be the optimum combination of the 2 goods if a rational
consumer buys them at the same price?
5. If the price of A increases from 1000 frs to 2000frs and that of B remains the
same at 1000 and income increases from 3000frs to 8000frs. What would be
the new optimum combination of the 2 goods?
Mu of A/PA 0.008 0.0006 0.004 0.0025 0.001 0.0005
Mu of B/PB 0.0.20 0.016 0.010 0.0006 0.004 0
Price of A =2000 frs and price of B= 1000frs
From the above condition, we have two cases where the condition holds. That
is 2A and 4B, and 3A and 5B.
The consumer will obtain optimum combination when all his/her income is
spent.
That is QA. PA + QB.PB=8000FRS
In cases I, 2 (2000) + 4 (1000)= 8000frs
4000+ 4000 =8000frs
In case ii, 3(1000) + 5(1000) =8000frs
3000frs + 5000frs =8000frs
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The optimum combination is 2A and 4B which is the first case. The second
case is on the higher indifference curve and the consumer’s income can not
permit him/her to obtain this combination.
6. When is a nation said to be living on its capital?
7. How is the problem of what to produce in a capitalist society solved/
8. Name two forms of rationing when there is a shortage of good in the market.
In question 9 to 12 say whether the statements are true or false.
9. When marginal tax rate is greater than average tax rate, it shows a regressive tax
regime,
10. An increase in the supply of money, will not affect the value of money if the
additional money is absorbed into idle balance.
11. A nationalized industry will adopt a pricing policy at the level of output where
AR =MC.
12. Crowding in would occur if the government spends more than that it raises in
revenue.
Question 13 and 14 are based on the table that follows:
Price 5 6 7 8 9
Demand 20 18 15 13 10
Supply 10 13 15 18 20
13. If a subsidy of 2 frs per unit is granted to producers. What would be the new
equilibrium price?
14. Instead of a subsidy, a tax of 2 frs is imposed on producers. What would be the
new equilibrium price?
Question 15 and 16 are based on the following: Total domestic expenditure
=400,net exports=40, net property income from abroad = 30, taxes on
expenditure =10. Subsidy = 5, and depreciation =10.
15. GDP at factor cost is
16. The value of National income is
17. A consumption function is given by C= 20+0.8yd, sketch the saving function.
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Saving
0 Income
100
_20
18. Which is the most profitable asset to commercial bank?

Question 19, 20 and 21 based on the diagram below.
S1
Price S
75
50
20 D
Quantity
60 100
19. Value of tax per unit output is
20. Total revenue to the government from tax is
21. Total tax paid by consumers is
In questions 22, 23, 24 and 25 write only the letter that corresponds to the tight
answer.
22. If the amount of a commodity purchased remains unchanged when the amount
of another commodity changes, the cross elasticity between tem is
23. When average product of labour is positive but declining the marginal product
for labour could be
24. When the price of a substitute of good X falls, the demand for x
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TEST 1
1. “An nature and Causes of Wealth of Nations” is the book of enquiry into the economist A)
Adam Smith
B) Marshall
C) Robbins
D) None of above
2. “Economics is the Science of Wealth” who gave this definition?
A) J.K. Mehta
B) Marshall
C) Adam Smith
D) Robbins
3. “Economics is what economists do.” It has been supported by:
A) Richard Jones
B) Comte
C) Gunnar Myrdal
D) All of the above
4. “Human Welfare is the subject of Economics.” This statement is associated with the name
of which of the economists:
A) Marshall
B) Pigou
C) Penson
D) All of the above
5. Who has given scarcity d3efinition of economics?
A) Adam Smith
B) Marshall
C) Robbins
D) Robertson
6. “Economics is a science” the basis of this statement is:
A) Relation between cause and effect
B) Use of deductive method and inductive method for the formations of laws
C) Experiments
D) All of the above
7. Characteristics of economic laws are:
A) Mere statements of economic tendencies
B) Less certain
C) Hypothetical
D) All of the above
8. Which theory is generally included under micro economics?
A) Price Theory
B) Income Theory
C) Employment Theory
D) None of the above
9. Whose opinion has revolutionized the scope of macro economics?
A) Adam Smith
B) J. B. Say
C) J.M. Keynes
D) All of above
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10. Which of the following is an economic activity?
A) Teaching of a teacher in the school
B) To teach son at home
C) To serve her child by mother
D) To play football by a student
11. Passive factor of production is:
A) Only land
B) Only capital
C) Both land and capital
D) Neither land nor capital
12. Under law of demand:
A) Price of commodity is an independent variable
B) Quantity demanded is a dependent variable
C) Reciprocal relationship is found between price and quantity demanded
D) All of the above
13. For inferior commodities, income effect is:
A) Zero
B) Negative
C) Infinite
D) Positive
14. When total utility becomes maximum, the marginal utility will be:
A) Minimum
B) Average
C) Zero
D) Negative
15. Utility means:
A) Power to satisfy a want B) Usefulness C) Willingness of a person D) Harmfulness
16. Marginal utility is equal to average utility at that time when average utility is: A)
Increasing
B) Maximum
C) Falling
D) Minimum
17. At point of satiety, marginal utility is:
A) Zero
B) Positive
C) Maximum
D) Negative
18. Which of the following is the second law of Gossen?
A) Law of equi-marginal utility
B) Law of equi-product
C) Theory of indifference curve
D) Law of diminishing marginal utility
19. Total utility of a commodity is measured by which price of that commodity? A)
Value in use
B) Value in exchange
C) Both of above
D) None of above
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20. According to Marshall, the basis of consumer surplus is:
A) Law of diminishing marginal utility
B) Law, of equi-marginal utility
C) Law of proportions
D) All of the above
21. A politician proposes reducing business taxes, a move she says will encourage risk-taking
entrepreneurship. This proposed cut in business taxes is intended to stimulate the economy
mainly through
A) An increase in aggregate supply
B) A decrease in aggregate supply
C) Decrease in aggregate demand
D) An increase in aggregate demand
22. One country enjoys a comparative advantage over another in producing oil when
A) It has more oil than the other country
B) It can produce oil at a lower opportunity cost than the other country
C) It does not need to import oil
D) It wants to export as much oil as possible
23. Drought conditions create water shortages. Assuming that water consumption can be
measured for each household, select the water policy below that is most likely to cause the
greatest reduction in water use by urban households
A) Give water to users with instructions to use it wisely
B) Charge a flat (constant) fee of $50 per household, irrespective of the amount of water
used
C) Raise the price of water from 2 cents to 50 cents per gallon with the biggest water users
(per capital) paying the highest price per gallon
D) Charge $20 per month and limit household consumption to last year’s monthly
24. As more labour is added to a fixed amount of input, the rate at which output goes up begins
to decrease. This is called
A) Diminishing marginal utility
B) Diminishing marginal productivity
C) Diminishing marginal costs
D) Diminishing marginal profit
25. If the cost of sugar rises and sugar is a major ingredient in jelly beans, then the jelly beans
A) Demand curve shifts to the left
B) Supply curve shifts to the left
C) Supply curve shifts to the right
D) Demand and supply curves both shift to the right.
TEST 2
1. Assume that next exports increase by $1 billion. Equilibrium Real GDP will rise by more
than $1 billion. Explain why. (i.e., why is there a multiplier)
A) An increase in net exports appreciates the dollar causing a further increase in net exports
B) An increase in net exports causes an increase in tax revenues which increases government
spending
C) An increase in net exports increases income causing an increase in induced consumption
D) An increase in net exports causes an increase in the money supply
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2. The largest transfer in the federal government level is the:
A) Defense
B) Education
C) Social security
D) Welfare
E) Police
3. The largest tax collected at the federal government level is the :
A) Income tax
B) Sales tax
C) Property tax
D) Social security tax
4. A person had an income of $20,000 last year and paid $10,000 in tax. This year the person
had an income of $100,000 and paid $30,000 in tax. The person marginal tax rate is :
A) 25%
B) 30%
C) 50%
D) 100%
5. The tax in question 29 is:
A) Progressive
B) Regressive
C) Proportional
6. Assume that equilibrium GDP is $4,000 billion potential GDP is $5,000 billion. The
marginal propensity to consume is 4/5 (8.0). By how much and in what direction should
government purchases be changed?
A) Increased by $1,000 billion
B) Decreased by $1,000 billion
C) Increased by $100 billion
D) Increased by $200 billion
7. Using the numbers in question 31, by how much should taxes be changed? A)
Increased by $1,000 billion
B) Decreased by $1,000 billion
C) Decreased by $200 billion
D) Decreased by $250 billion
8. Assume that equilibrium Real GDP is $20,000 while potential real GDP is $15,000. The
marginal propensity to consume is 9/10. Assume that government decides to lower taxes by
$1,000. To pay for this, it lowers government purchases by $1,000. As a result of these two
changes, what is new Equilibrium Real GDP?
A) $19,000
B) $20,000
C) $21,000
D) $14,000
E) $1,000
9. Which of the following statements is true about the national debt?
A) In total, it is higher now than it has ever been
B) Most of it is owed by the federal government to foreigners
C) It means that a tremendous burden is being passed to our children
D) Because of it, the United States is on the verge of bankruptcy
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E) All of the above
10. If the official federal budget shows a deficit of $200 billion while the structural budget is has
a surplus of $200 billion, it can be concluded that:
A) The intent of fiscal policy is very expansionary
B) There is hyperinflation
C) The unemployment rate is well above the natural rate
D) State and local governments have large surpluses
E) off-budget spending is counted in the official deficit but not in the structural deficit
11. The Phillips curve describes the relationship between:
A) The federal budget deficit and the trade deficit
B) Savings and investment
C) The unemployment rate and the inflation rate
D) Marginal tax rates and tax revenues
12. Several adjustments have been suggested to the official budget deficit to be able to measure
the effects of budget deficit on the economy. For which of the following would the adjusted
deficit be larger than the official budget deficit?
A) State and local budget surpluses need to be added to the official budget deficit B)
The effects of unemployment need to be taken out of the official budget deficit
C) The effects of inflation need to be taken out of the official budget deficit
D) Off-budget spending needs to be added to the official budget deficit
13. Which of the following is included in M-1?
A) Gold
B) Credit cards
C) Checkable deposits
D) Money market mutual funds
E) Stock
14. Which of the following is true about the Federal Reserve System?
A) Its seven Board members are appointed by the president of the United States
B) Its main policy-making body is called the CBO
C) It insures checking accounts against bank failure
D) It accepts deposits from individuals and makes loans for mortgages
E) All of the above
15. Assume that the Fed increases the monetary base by $1 billion when the reserve requirement
is 1/7. As a result, the money supply will:
A) Increase by $1 billion
B) Decrease by $1 billion
C) Increase by $7 billion
D) Increase by $143 million
16. If the Fed wishes to decrease (tighten) the money supply, it should:
A) Buy Treasury securities in the open market
B) Raise the discount rate
C) Lower the reserve requirements
D) Raise marginal tax rates
17. The demand for money will fall if:
A) Real GDP rises
B) Real interest rates rise
C) The GDP Deflator rises
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D) People expect deflation soon
18. An increase in the money supply causes:
A) Interest rates to fall, investment spending to rise, and aggregate demand to rise
B) Interest rates to rise, investment spending to rise, and aggregate demand to rise
C) Interest rates to rise, investment spending to fall, and aggregate demand to fall
D) Interest rates to fall, investment spending to fall, and aggregate demand to fall
19. If individuals forecast future prices by examining the rates of inflation of the present and
recent past, they are using:
A) Adaptive expectations
B) Rational expectations
C) Inflationary expectations
D) Structural expectations
20. If the actual unemployment rate is below the natural rate of unemployment, it would be
expected that:
A) The rate of inflation would increase
B) Wages would fall
C) The Phillips curve would shift to the left
D) The natural rate of unemployment would fall
21. According to the monetarist acceleration theory, in the long-run,
A) The actual unemployment rate will be below the natural rate of unemployment
B) The actual unemployment rate will be equal to the natural rate of unemployment C)
the actual inflation rate will be equal to the natural inflation rate
D) The budget deficit will be equal to zero
E) The money supply will be growing at a constant rate per year
22. According to the monetarists, in the long-run, the Phillips curve is:
A) vertical
B) Downward –sloping
C) horizontal
D) upward-sloping
23. Which of the following statements is true about supply-side economics?
A) The main change made by the tax law of 1981 and 1986 was to increase marginal tax rate
in order to balance the budget
B) The laffer curve says that, if marginal tax rates fall, tax revenue will rise, and the budget
deficit will decrease.
C) If the tax law 1981 and 1986 had their intended effect; consumption would have risen,
causing an increase in both GDP and in the price level
D) all of the above.
24. Those who oppose a constitutional amendment to require a balance federal budget would
make which of the following arguments:
A) Deficits are bad because they can cause crowding out.
B) Such an amendment could force the government to undertake policies that would
increase a recessionary gap
C) Deficits can cause inflation by increasing aggregate demand.
D) Budget deficits can cause an increase in the trade deficit by appreciating the dollar.
25. If the money supply is: The interest rate is:
$100 billion 10%
120 billion 8%
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BAMBILI (ECONOMICS)
140 billion 6%
160 billion 4%
120 billion 2%
If the interest rate is: investment spending is:
10% $10 billion
8% $20 billion
6% $30 billion
4% $40 billion
2% $50 billion
Assume that equilibrium GDP is $400 billion, potential GDP is $500 billion, the marginal
propensity to consume is 9/10, the interest rate is 8%, investment spending is $20 billion,
the money supply is $120 billion, and the reserve requirement is 1/10. By how much and in
what direction should the Fed change the monetary base? A) In crease it
by $20 billion
B) Decrease it $100 billion
C) Increase it by $90 billion
D) Increase it by $2 billion
E) Decrease it by $10 billion
71
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BAMBILI (ECONOMICS)
ANSWERS TO 2017
1 2 3 4 5 6 7 8 9 10
11 12 13 14 15 16 17 18 19 20
21 22 23 24 25
MINORS MATH/GEO 2017

1 2 3 4 5A 6D 7B 8 9 10B
11A 12A 13C 14B 15C 16 17C 18B 19 20
GENERAL KNOWLEDGE 2017

1C A2 3 4C 5B 6B 7D 8C 9 10C
ANSWERS TO 2015
1B 2C 3B 4A 5A 6A 7D 8C 9 10B
11C 12D 13B 14 15 16 17 18 19D 20B
21D 22A 23B 24B 25C 26A 27C 28D 29C 30A
31D 32D 33D 34B 35B 36A 37C 38B 39B 40B
MINOR 2015
1A 2C 3D 4A 5C 6D 7D 8A 9C 10A
11A 12D 13B 14C 15A 16C 17A 18A 19A 20A
21D 22B 23B 24B 25.
72
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BAMBILI (ECONOMICS)
ANSWERS TO 2014 SESSION
1. From the question, the exchange rate between Euros and pounds is 2 Euros =
1 pound, the exchange rate between dollars and pounds is $1 = 2 pounds. We
can adjust the exchange rate between dollars and pounds by expressing dollars
1
as a unit of pounds; i.e.2 pounds = $1→1 pound = $. But 1 pound = 2
2
1
Euros→ $ = 2 Euros. Thus, $1 = 4 Euros. (A).
2
% ∆ in qty
2. P.E.D = .We are told that P.E.D = 0.8 and % ∆ in qty = 16
% ∆ in price
16 16
→0.8 = →% ∆ in price = →% ∆ in price =20. Thus, a 16%
% ∆ 𝑖𝑛 𝑝𝑟𝑖𝑐𝑒 0.8
increase in sales (qty) will imply a 20% decrease in price; this is because qty
demanded is inversely related to price. (D).
3. The supply function is P = 2 + 0.2Q and the demand function is P = 10 –
8
0.2Q. At equilibrium, Qs = Qdd→2 + 0.2Q = 10 – 0.2Q→0.4Q = 8→Q =
0.4
= 20. (B)
4. From the relations in 3, P = 2+0.2Q and Q = 20→P = 2+0.2(20) →P = 2+4
=6. (C)
1 1
5. This is a 2 sector economy and K = but mps = 0.2→K = = 5. We
𝑚𝑝𝑠 0.2
know that ∆𝑌 =K. ∆𝐺→ ∆𝑌 = 5 x 2 billions = 10 billions. (D).
6. Rice and fish are complements; a decrease in the price of rice will mean an
increase in consumer’s real income. That is, with the same income, the
consumer will be able to buy more fish and rice. Thus, the income effects. (B).
7. For a linear demand curve, the elasticity of demand is unity at every point on
the curve. It takes the form of a rectangular hyperbola. (B).
8. Y
XA
X B
X C
I X
73
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BAMBILI (ECONOMICS)
Along indifference curve like the one above, the consumer derives the same amount
of satisfaction. Therefore, it does not matter to him whether e consumes
combinations A, B or C. this is because Total Utility is the same. (C).
9. This firm will minimize losses by producing in the short run, because MC =
AVC. (C).
10. Cost/Rev
MC
AC
AR
MR Output
From the figure above, allocative efficiency is achieved when AR = MC. But average
revenue is the price line. This implies AR = P. Thus, P = MC. (B).
11. Cost/Rev
ED>1
ED = 1
ED<1 AR
AR qty
MR
From the above diagram, we can deduce that when MR = 0, demand is unity.
This means that any point to the left demand is elastic. Thus, MR is positive
when demand is elastic. (D).
74
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BAMBILI (ECONOMICS)
12.
Y
X
𝑃𝑌
The gradient of the budget line above is M = , this gradient is constant along the
𝑃𝑋
line; therefore consumer’s willingness to substitute between the two products is fixed.
(D).
𝑃𝑌
13. From 12 above, we have seen that the gradient of the budget line, M = this
𝑃𝑋
relation therefore represent the price ratio. (B).
14. Investment is the purchase of machines, buildings and other produced means
of production. During this process, resources are devoted to increasing future
output. (B).
15. Using the expenditure method, the value of GDP corresponds to the value of
the final product. That is GDP = value of kids dresses→GDP = 1200frs. (A).
Alternatively, using the output method, GDP corresponds to the sum of the
value added.
Stages Input Output Value added
Che 0 100 100frs
Ayuk 100 300 200frs
Camile 300 700 400frs
Donita 700 1200 500frs
1200frs. (A)
16. GDP = C +I +G + X – M. In this question, net export has been given as 2
→X – M= 2 and GDP = C + I + G + (X – M) = 70 +18 + 20 +2 =110. (C).
17. Yd = C+S but C = 70 and S = 5 →Yd = 70 + 5 = 75. (C).
18. We know that NDP = NPIA = NI but NDP = 105 and NI = 100 →NPIA =
NI – NDP
→NPIA = 100 – 105 = 5 millions. (A).
75
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BAMBILI (ECONOMICS)
19.
Real GDP Peak trend From the figure above, the phase
where real
GDP begins to
decline is called a recession
Expansion (C).
Recession Trough
Time
20. Expenditure
C<Y (APC<1 APC<100%)
Y=C Consumption
APC=1
C>Y→APC>1 and
APC>100% 450
Ῡ y
From the diagram above, any point to the left of the equilibrium income
C >Y and APC>1 hence APC>100%. (A).
21. Still considering the diagram in question 20, we can see that at the point of
intersection Y = C and hence, APC = 1 = 1.00. (B).
22. The reserves of commercial banks consist of deposits at the central bank and
vault cash. (B).
23. Reserve requirement = 25%; checkable deposit = 80,000.
25
Therefore, actual reserves = x 80,000 = 20,000. (D).
100
24. A group of firms producing identical product is called an industry e.g
CAMSUCO, NOSUCA and SOSUCA and all firms in the sugar industry.
76
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BAMBILI (ECONOMICS)
Again Guiness Cameroon, Les brasserie du Cameroun and U.C.B are all firms
in the brewery industry. (A).
25.
Year Income Tax rate Tax amount
1 20,000 20% 4,000 (
20
x 20,000)
100
2 30,000 25% 7,500 (
25
x 30,000)
100
𝑐ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑡𝑎𝑥 7,500−4000 3,500
MTR = x 100 = x 100 = x 1000 = 35%.
𝑐ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑖𝑛𝑐𝑜𝑚𝑒 30,000−20,000 1,000
(C).
SECTION II: MATEMATICS.
ANSWERS TO 2013 SESSION (HTTTC)
1.A 2.B 3.D 4.B 5.B 6.B 7.D 8.C 9.A 10.D
11.B 12.C 13.D 14.D 15.A 16.A 17.A 18.D 19.C 20.B
21. 22. 23. 24. 25. 26. 27. 28. 29. 30.
31. 32. 33. 34. 35. 36. 37. 38. 39. 40.
ANSWERS TO 2013 SESSION (HTTC)

1.B 2.B 3.D 4.A 5.C 6.C 7.B 8.B 9.D 10.C
11.D 12.A 13.D 14.A 15.B 16.B 17.C 18.B 19.D 20.C
21.B 22.C 23.D 24. 25.B 26. 27. 28. 29. 30.
31. 32. 33. 34. 35. 36. 37. 38. 39. 40.
41. 42. 43. 44. 45. 46. 47. 48. 49. 50.
ANSWERS TO 2012 SESSION (HTTTC)
1. Below is a table showing TP, AP and MP
No of farmers(Q) 10 20 30 40 50 60 70 80 90 100
Total product(TP) 10 15 27 40 65 850 100 112 120 115
0 0 0 0 0 0 0 0 0
Average 10 7.5 9 10 13 14.1 14.2 14 13.3 11.5
product(AP);TP/Q 7 8 3 0
Marginal 10 5 12 13 25 20 15 12 8 -5
product(MP); ∆TP
/∆𝑄
2. Increasing MP, decreasing MP and negative MP.
3. Stage 1, because of the underutilization of the fixed factor.
77
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BAMBILI (ECONOMICS)
4. When MP is increasing, TP increases at an increasing rate; when MP is
decreasing, TP increases at a decreasing rate; and when MP is negative, TP
starts falling.
5. The marginal increase in TP eventually decreases when additional units of a
variable factor are applied to a given quantity of a fixed factor.
6. Short run.
7. Explicit cost refers to the direct or recorded cost of the business as considered
by accountants, whole implicit cost refers to indirect cost (opportunity cost)
not recorded by accountants as considered by economists.
8.A 9.D 10. 11. 12.B 13.C 14. 15.C 16. 17. 18. 19. 20
A A A D A D D .
21. 22. 23. 24. 25. 26. 27.C 28. 29.C 30.C 31. 32.A 33
C A A A A A D D .
33. Qd = 100(2Px – 4) = 200Px – 400
34. Qs = 100Px
35. At equilibrium, Qs = Qd; hence, Pe = 4 and Qe = 400
36. Sortage, rationing, black marketing…
37. Mathematics, Prose and Geometry.
38. D
39. C
40.
1. A 2. A 3. C 4. B 5. B 6. A 7. C 8. B 9. D
10. D 11. A 12. A 13. C 14. C 15. C 16. A 17. C
18. Consumption that does not depend on current income or consumption at
zero income level.
19. Technical rate of substitution
20. Market supply or aggregate supply
21. Total domestic income
22. Capital goods
23. False 24.False 25.False 26.True
100
27. Yield = Dividend x
1
Yield = market value
20
(1000) 100
Yield = 100
x → Yield = 1.25%
1600 1
78
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BAMBILI (ECONOMICS)
𝑐ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑛𝑜𝑚𝑖𝑛𝑎𝑙 𝑚𝑜𝑛𝑒𝑦 𝑠𝑢𝑝𝑝𝑙𝑦 100
28. Growth rate of nominal money supply = x
𝑖𝑛𝑖𝑡𝑖𝑎𝑙 𝑛𝑜𝑚𝑖𝑛𝑎𝑙 𝑚𝑜𝑛𝑒𝑦 𝑠𝑢𝑝𝑝𝑙𝑦 1
200 100
= x = 10%
2000 1
𝑀𝑣 8000
29. Given that Mv = Py we see that in year 1, P = = =2
𝑌 4000
𝑀𝑣 2200(4) 8800
30. In year 2, it is similarly calculated that P = 2.16 ⇒ P = = =
𝑌 4065 4𝑂𝑂𝑂
2.16 100 0.16 100
Inflation rate = x = x = 8%
2 1 2 1
31. Real interest rate = nominal interest rate – inflation rate = 9% - 8% = 1%
1. Because of the law of diminishing marginal utility and the revealed preference
theory (income and substitution effects)
2. Normative economics
3. Excess supply over demand
4. A fall in consumer income, a fall in population, etc
5. Monopoly
6. I = 143 – 100 = 45 and C0 = 100
7. True
8. Laissez faire economics (capitalist or free or market economy)
9. 1) Time, 2) Space (geographical location)
10. Geometric progression (1, 2, 4, 8, 16, 32...)
11. To stabilize prices of agricultural products
12. Capital consumption
13. Entrepreneur
14. General Agreement on Tariff and Trade (GATT)
15. Taxes and expenditure
16. A is progressive tax; B is proportional tax; C is regressive tax
17. AFC is TFC divided by output and ATC is AFC plus AVC
18. The paradox of thrift
19. An administered reduction in the value of a currency against other currencies
under a fixed exchange rate system
20. Nationalization.
21.C 22.B 23.C 24.B 25.C 26.C 27.A 28.D 29.C 30.B
31.A 32.B 33.B 34.A 35.A 36.A 37.B 38.A 39.B 40.C
79
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BAMBILI (ECONOMICS)

1. Scarcity, choice and opportunity cost.
2. It requires that MC = AC and MC = P.
3. The alternative combinations of inputs that can be used to produce a given
quantity of output.
4. If we assume that each good cost 1000frs and the consumer income is 3000frs,
then the maximum combination of the 2 goods will be 2Bs and 1A that is the
first 1000frs will be spent on good B, the second on A and the third 1000frs on
good B.
𝑀𝑢𝐴
5. Look at the marginal price ratio of the two and apply this condition. =
𝑝𝐴
𝑀𝑢𝐵
𝑝𝐵
Mu of 0.008 0.0006 0.004 0.0025 0.001 0.0005
A/PA
Mu of 0.020 0.016 0.010 0.006 0.004 0
B/PB
Price of A = 2000frs and price of B = 1000frs.Frome the above condition, we

have two cases where the condition holds. That is 2A and 4B, 3A and 5B. The
consumer will obtain optimum combination when all his/her income is spent
That is QA.PA + QB.PB = 8000frs
In case i, 2(2000) + 4(1000) = 8000frs. Then, 4000 + 4000 = 8000frs
In case ii, 3(1000) + 5(1000) = 8000frs. Then 3000 + 5000 = 8000frs
The optimum combination is 2A and 4B which is the first case. The second
case is on the higher indifference curve and te consumer’s income can not
permit him/her to obtain this combination.
6. When depreciation exceeds capital accumulation.
7. Through price mechanism (through markets).
8. (i) First come first serve (ii) use of ration tickets.
9. False.
10. False.
11. True.
12. False.
80
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LB-Econmomics - 1st Cycle - HTTC

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ENTRANCE EXAMINATION INTO FIRST YEAR OF FIRST CYCLE 1 OF HTTC

SESSION: 2017 .................................................................................................................................................................................................................. 1

CYCLE: 1st CYCLE SESSION: 2017/2018

Question 4 and 5 are based on the table below

9 A firm experiences increasing returns to variable factor when:

10 An individual’s income increases from 100000 to 120000 FCFA.As a result his

11 The word preventive checks as used by Malthus are those:

14 When a consumer is consuming two goods X and Y,he will be at equilibrium

A) MUX/MUY=PX/PY B) MUX/PX=MUY/MUX C) PX=PY D) MU=price

A) Deflation B) Devaluation C) Revaluation D) lowering interest rates

18 The following table carries information about Cameroon and Nigeria.

C=2000MFCFA + 0.5Y I=500MFCFA G=100MFCFA and T=0.3Y

A) 2000MFCFA B)5200MFCFA C)7000MFCFA D)9000MFCFA

A) 2000MFCFA B)5500MFCFA C)4600MFCFA D)9000MFCFA

A) 500MFCFA B)833.3MFCFA C)8.50MFCFA D)1000MFCFA

24 Laissez faire economy is defined as a system in which is:

Questions 25 and 26 are based on the table below:

27 The determinants of the multiplier in a closed economy without government are:

31 Anything which serves as a medium of exchange and not as a store of value is :

33 What type of unemployment exists when workers marginal product is zero?

C) Any amount of money standing in commercial bank or any financial institution in

D) Any form of article used in form of money

SECTION FOUR: STRUCTURED ESSAY (20%)

SECTION B: MINOR PAPER-GEOGRAPHY

SECTION B: MINOR PAPER-MATHEMATICS

18. Which is the most profitable asset to commercial bank?

MINORS MATH/GEO 2017

GENERAL KNOWLEDGE 2017

ANSWERS TO 2013 SESSION (HTTC)

ANSWERS TO 2008 SESSION

Price of A = 2000frs and price of B = 1000frs.Frome the above condition, we

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