W1-2-60-1-6
JOMO KENYATTA UNIVERSITY
OF
AGRICULTURE AND TECHNOLOGY
University Examinations 2014/2015
SECOND YEAR FIRST SEMESTER EXAMINATION FOR THE DEGREE OF BACHELOR OF SCIENCE IN MATHEMATICS AND COMPUTER SCIENCE AND FIRST YEAR SECOND SEMESTER BACHELOR OF PURCHASING AND SUPPLIES MANAGEMENT
HRD 2103: GENERAL ECONOMICS
DATE: AUGUST 2014 TIME: 2 HOURS
INSTRUCTIONS: ANSWER QUESTION ONE (COMPULSORY) AND ANY OTHER TWO QUESTIONS
Question One (30 Marks)
a (i) What is demand? (2 Marks)
(ii) State the law of demand (2 Marks)
b) Briefly explain the following economic concepts:
(i) Scarcity (3 Marks)
(ii) Choice (3 Marks)
(iii) Scale of preference (3 Marks)
(iv) Opportunity cost (3 Marks)
c) Distinguish between complimentary demand and derived demand. (4 Marks)
d (i) What is production? (2 Marks)
(ii) Briefly explain each of the three types of production by giving relevant examples where necessary. (6 Marks)
(iii) Define price elasticity of demand. (2 Marks)
Question Two (20 Marks)
a) What is money? (2 Marks)
b) State and explain the functions of money in an economy. (10 Marks)
c) What characteristics should money posses? (8 Marks)
Question Three (20 Marks)
Discuss the cases for and against tariffs as used in international trade. (20 Marks)
Question Four (20 Marks)
a) What is tax? (2 Marks)
b) Explain why the government will always levy taxes on its citizens. (6 Marks)
c) What are the characteristics of a good tax system? (12 Marks)
Question Five (20 Marks)
a) What is foreign aid? (2 Marks)
b) Explain the role of foreign aid in a developing country like Kenya. (10 Marks)
c) What is the case for and against foreign aid? (8 Marks)
