WEDNESDAY: 6 December 2023. Afternoon Paper. Time Allowed: 3 hours.
This paper has seven (7) questions. Answer any FIVE questions. ALL questions carry equal marks. Do NOT write anything on this paper.
QUESTION ONE
1. State FOUR challenges encountered in developing countries during economic planning. (4 marks)
2. Outline FOUR assumptions of the circular flow of income for a closed economy without a government. (4 marks)
3. Explain the term “point price elasticity of demand”. (2 marks)
Describe TWO ways in which price elasticity of demand could be applied in business decision
making. (4 marks)
4. Explain THREE negative effects of inflation in a country. (6 marks)
(Total: 20 marks)
QUESTION TWO
1. List FOUR political factors that could affect business growth adversely. (4 marks)
2. State FIVE objectives of monetary policies. (5 marks)
3. Most developing countries experience deficits in their balance of payments.
Summarise THREE methods that developing countries could use to correct deficits in their balance
of payments. (3 marks)
4. Explain FOUR conditions that favour the use of price discrimination in an economy. (8 marks)
(Total: 20 marks)
QUESTION THREE
1. Outline FOUR benefits of studying the business environment. (4 marks)
2. Discuss THREE areas of conflict between corporate management and stakeholders. (6 marks)
3. Explain FIVE factors that could influence currency exchange rates in a country. (10 marks)
(Total: 20 marks)
QUESTION FOUR
1. Outline SIX roles of the marketing department in an organisation. (6 marks)
2. Summarise FOUR factors that have contributed to the growth of multinational corporations. (8 marks)
3. Analyse THREE strategies used by businesses to deal with cultural differences in foreign countries. (6 marks)
(Total: 20 marks)
QUESTION FIVE
1. With reference to company analysis, enumerate EIGHT elements of a company profile. (8 marks)
2. Outline SIX reasons why the government control prices of commodities. (6 marks)
3. Summarise THREE functions of commercial banks. (6 marks)
(Total: 20 marks)
QUESTION SIX
1. State FIVE characteristics of a free market economy. (5 marks)
2. Differentiate between “economic growth” and “economic development” in a country. (4 marks)
Describe SIX factors that could hinder economic development in developing countries. (6 marks)
3. Outline FIVE limitations of the theory of comparative advantage. (5 marks)
(Total: 20 marks)
QUESTION SEVEN
1. Explain the following types of inflation:
Imported inflation. (2 marks)
Full employment inflation. (2 marks)
Administered inflation. (2 marks)
2. Summarise FOUR positive effects of inflation. (4 marks)
3.Summarise FOUR reasons why it is important to estimate the national income of a country. (4 marks)
Discuss THREE challenges encountered when estimating national income in developing countries.
(6 marks)
(Total: 20 marks)
