Economics April 2023 past paper

TUESDAY: 25 April 2023. Afternoon Paper.                                                                    Time Allowed: 3 hours. Answer any FIVE questions. ALL questions carry equal marks. Do NOT write anything on this paper.

QUESTION ONE

1. Identify SIX conditions necessary for price discrimination under monopoly. (6 marks)
2. Enumerate FIVE benefits of studying (5 marks)
3. List FIVE measures that may be adopted to correct income inequalities in developing (5 marks)
4. Highlight FOUR assumptions of indifference curve (4 marks)

(Total: 20 marks)

QUESTION TWO

1.(i) Explain the term “Gini Coefficient” as used in (2 marks)

(ii)  Describe THREE principles of the Gini Coefficient.              (6 marks)

2. State SEVEN roles of the World Bank Group to a member (7 marks)

3. With the aid of a diagram, explain regressive supply (5 marks)

(Total: 20 marks)

QUESTION THREE

1. Describe FOUR factors that determine the supply of money in an (8 marks)

2. Identify FIVE tax measures that a government could adopt to spur growth in the agricultural (5 marks)

3. Outline SEVEN demerits of inflation (7 marks)

(Total: 20 marks)

QUESTION FOUR

The commodity and money markets for a certain economy is given by the following functions:

Required:

1. Derive the IS (3 marks)
2. Derive the LM (5 marks)
3. Determine the equilibrium rate of (2 marks)
4. Determine the equilibrium level of national (2 marks)

 

2. Explain the following types of multipliers as used in economics:

• Investment (2 marks)
• Government (2 marks)
• Export (2 marks)
• Consumption (2 marks)

(Total: 20 marks)

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QUESTION FIVE

1. Most developing countries are faced with a problem of high external

As an economist, outline EIGHT policy measures that the developing countries could put in place to minimise the problem of rising external debt.    (8 marks)

2. With the aid of a well labelled diagram, explain the law of diminishing marginal (6 marks)

3. Enumerate SIX factors that influence the cost behaviour of a manufacturing (6 marks)

(Total: 20 marks)

QUESTION SIX

1. The following information relates to the quantity demanded of commodity X at different prices and income levels of a consumer:

• Determine price elasticity of commodity X and interpret your (3 marks)
• Determine income elasticity of commodity X and interpret your (3 marks)

2. Identify SIX advantages of economic integration to the member (6 marks)

3. Explain FOUR negative effects of increased government spending on economic (8 marks)

(Total: 20 marks)

 

QUESTION SEVEN

1. (i) Differentiate between a “stable equilibrium” and an “unstable equilibrium”. (4 marks)

(ii)         With the aid of a well labelled diagram, illustrate an unstable equilibrium.              (4 marks)

2. Identify SIX criticisms of the marginal productivity theory of wage (6 marks)

3. List SIX reasons why mobility of factors of production is (6 marks)

(Total: 20 marks)