SECTION A (32 marks)
Answer ALL the questions in this section.
1. State two implications of scarcity of resources in a country. (2 marks)
2. State three reasons that may account for the low elasticity of supply for agricultural products. (3 marks)
3. State four reasons that could contribute to a rise in demand for private cars in a country. (4 marks)
4. Suggest three messages that a high price on a product could communicate. (3 marks)
5. List four factors of production. (4 marks)
6. Identify four features that may define a market. (4 marks)
7. State three methods that a country may use to measure its national income. (3 marks)
8. State four functions of money as a medium of exchange. (4 marks)
9. State three ways in which a government could raise funds to finance its activities. (3 marks)
10. List two types of inflation that a country may experience. (2 marks)
SECTION B (68 marks)
Answer any FOUR questions from this section.
11. (a) Describe four characteristics of human wants. (8 marks)
(b) The elasticity of demand for a commodity may be influenced by certain factors.
Outline six such factors. (9 marks)
12. (a) Outline four components of recurrent expenditure of a government. (8 marks)
(b) There are certain limitations of barter trade as a medium of exchange. Explain six such limitations. (9 marks)
13. (a) Country X intends to institute import restrictions to protect its infant industries. Describe four such restrictions. (8 marks)
(b) There are certain factors that could influence the location of an industry. Highlight six such factors. (9 marks)
14. (a) Describe four different types of market structures that may be found in an industry. (8 marks)
(b) Explain six ways in which the national income figures of a country may be useful to the country. (9 marks)
15. (a) Explain four ways in which a government may promote the growth of the private sector in the country. (8 marks)
(b) There are certain factors that may contribute to wage differences among workers within the same occupation. Highlight six such factors.