Category: 2011 D03 Eco

Q. Explain the following terms:- a) Gross Domestic Product. b) Direct tax. c) Indirect tax. d) Consumer Price Index. e) Balance of Payment. (20 marks, 2011 Q8) A. a) Gross Read More …

Q. a) With an aid of a diagram, explain circular flow of income in a two-sector economy. (10 marks) b) Differentiate the functions of commercial bank and central bank. (10 Read More …

Q. a) Define National Income and discuss its uses. (5 marks) b) Explain any two (2) methods of calculating national income and discuss the problems encountered in calculating the national Read More …

Q. a) Elaborate the four (4) functions of money in an economy. (8 marks) b) Discuss the meaning of inflation and the measures implemented by the government to control inflation. Read More …

Q. a) Explain the meaning of ‘economies of scale’ and distinguish between internal and external economics. (10 marks) b) Explain the relation of short-run average costs to long-run average cost. Read More …

Q. a) Define the following market structures and illustrate the equilibrium position of a firm or industry in the short-run and in the long-run. i) Perfect Competition (8 marks) ii) Read More …

Q. a) Explain the following terms: i) Elasticity of demand and supply. (5 marks) ii) Indifference Curve. (5 marks) b) Explain the concept of production possibility curve and support your Read More …

Q. a) Economics is traditionally divided into two main areas i.e. Micro economics and Macro economics. Explain. b) Elaborate the meaning of opportunity cost with examples. c) Illustrate in diagrammatic Read More …