QUESTIONS TO ECONOMICS

QUESTIONS TO ECONOMICS

  1. Highlight the issues that an entrepreneur should consider when making a decision on the allocation of resource in a new venture. (10mks) 2012.

 

  1. Describe the features of a mkt economic sys that can be adopted by a country. (8mks) Nov 2014

 

  1. State 3 reasons that make economies to be considered as a science.(3mks) Nov 2014

 

  1. Outline the disdv of mkt economic sys in allocating resources in a country. (8mks) July 2013

 

  1. Explain the adv of planned economic sys (10mks) July 2015

 

  1. There are certain features that define a free mkt economic sys. Highlight those features (10mks) Nov 2015

 

  1. State 3 secondary human wants (3mks).

 

  1. One of the features of a free mkt economy is price fluctuations. Explain the factors that may account 4 such fluctuations. (8mks)

 

TOPIC 2: DEMAND ANALYSIS

  1. One of the factors that can influence dd for a commodity positively is govt policy measures. Outline the type of such govt policy measures. (8mks) Nov 2012

 

  1. With the aid of a diagram, explain the effect of a +ve shift in demand curve 4 a commodity on equilibrium price output. (10mks) Nov 2012

 

  1. Highlight the factors that may lead to an increase in demand for a commodity x (10mks) Nov 2014

 

  1. The following data refers todd for a commodity x at different prices.
Price (ksh) 30 20 15 10 5
Dd 4 x units (millions) 2.5 5 8 15 25

Sketch the dd curve 4 commodity x using the information (4mks) Nov 2014.

 

 

 

  1. Highlight 6 factors that can cause a shift in dd curve of a commodity. (9mks) Nov 2014.

 

 

  1. The information below relates to demand for tea relative to changes in coffee.
Price of x (ksh) 80 100
Dd for Y (millions) 30 50

Calculate cross elasticity of dd 4 Y when price changes from 80-100. (12mks) July 2013

 

  1. State 3 types of dd for a product. (3mks) 2012

 

  1. The co-efficient of the price elasticity of dd for a product has changed from 0.5 to 1.5 in 2 months interval. Explain 6 factors that may have caused the increase of elasticity of commodity. (9mks)2012

 

  1. State 2 elements that contribute effective dd 4 a product. (2mks) july 2014

 

  1. Describe one different type of price and dd elasticity. (10mks) July 2015.

 

  1. Using a diagram describe effects of a +ve increase in dd on equilibrium price. (8mks) J-2015

 

  1. Inflation is one of the economic variables that causes disequilibrium in dd and ss of good or services .explain 5 factors causing an increase in dd . (10mks) J 2015

 

 

  1. Using a schedule, draw dd curve 4 some ……… (4mks) J-2015

 

  1. State four determinants that causes consumers purchases in response 2 price change. (4mks) J 2015

 

  1. Explain 4 reasons 4 trends observed in dd curves (8mks) J-2015

 

  1. Assume that the price of quail eggs is kshs 100 per unit and is 10 units. Suppose that the price risesfrm 100-200 per unit and as a result dd decreases frm 10 units to 8 units. Calculate the elasticity of dd 4 Quail eggs (2mks)

 

  1. Commodities X & Y are substitutes.draw a diagram 2 illustrate the r/ship between the 2 commodities. (4mks) J-2015.

 

  1. State 3 ways in which a gvt may influence prices of goods in the country. 3mks J-15

 

  1. Some type tend to have low price elasticity of dd. Outline 6 xtics of such gds (9mk

 

  1. The diagram below show a price elasticity of dd 4 prdct X. explain the factors that may account 4 this nature of elasticity. (12mks

 

  1. Explain factors that determine price elasticity of dd 4 a prdct. (10mks Nov 2015

 

  1. List 3 types of dd 4 gds by consumers (3mks) N-2015

 

  1. The diagram below shows a shift in dd curve 4 a commodity.

 

Outline 6 factors that may account 4 the shift in dd curve. (9mks N-201

 

  1. Distinguish btwn the price elasticity of dd& income elasticity of dd (4mks

 

  1. Define dd (2mks)

 

TOPIC 3: SUPPLY ANALYSIS

 

1)Explain the factors that may account 4 the shift in ss curve (12mks) Nov 2012

 

  1. Explain the factors that could lead 2 a drop in qty of a commodity supplied in mkt. (12Mks)

 

  1. State 4 factors may affect the elastic of ss of a commodity. (8mks) Nov 14.

 

  1. Explain the factors that may affect the theelasticicy of ss of a commodity (8mks) Nov 14.

 

  1. One of the factor that determine ss of a commodity is govt policy outline such govt policy that may affect the supply (8mks) J-13

 

  1. Shift in ss curve. (8mks) J-14

 

  1. Explain the factors that could influence ss of a commodity in a given country. 12mks J-15

 

  1. The ss of a certain commodity in the country has gone down drastically. Highlight 6 factors that may account 4 this situation 9mks J-15

 

  1. Outline the circumstances that may lead 2 a shift to the left of ss curve of a commodity 8mks

 

  1. Using a diagram describe a +ve change in ss of a commodity. (8mks N-15

 

  1. One of the factors that affect ss of a commodity is govt policies. State such policies 3mks N-15

 

  1. Describe 4 types of elasticity of ss that a product may experience 8mks N-15

 

  1. With the aid of a diagram, explain the effect of a +ve shift in ss curve with no change in dd curve on price Y qty decisions (9mks N-15

 

  1. The table below shows ss schedule 4 commodity
Price ksh Qty units
2 40
5 200
  1. Calculate price elasticity of ss

 

  1. State the implications of the value of elasticity of above

 

  1. Define the term ss 2mks N-15

 

  1. Table II shows a farmersss of cabbages in an urban mkt.

 

Year Qty of cabbages (tones)
2001 20,000
2002 15,000
2003 10,000

Assuming the price remained constant, explain possible reasons 4 the trend in ss of cabbages. 10mks N-15

 

  1. The diagram below shows the elasticity of ss of a certain product.

 

Explain the factors that may account 4 this nature of elasticity. 10mks

 

TOPIC 4: THE CONCEPT OF EQUILIBRIUM IN ECONOMICS/PRICE DETERMINATION.

  • Explain the factors that could influence a firm 2 change a high price 4 its prdct. (10MKSJ-14

 

  • With the aid of a diagram explain the consequences of fixing govt control price below mkt equilibrium. (12mks)

 

  • State the factors that an enterprenuer should consider when setting price of a commodity. (3mks N-2014

 

  • With the aid of a diagram explain ways in which price is determined by forces of dd& ss. 12mks J-13

 

  • State 3 reasons that may make the price of a product 2 remain at mkt equilibrium (3mks) J-14

 

  • With the aid of a diagram explain the effect of fixing the price of a commodity below equilibrium level. (12mks dhrm N-2014.

 

  • Zangu ltd produces a wide range of household electronic prdcts. Explain the factors that would influence price charged on prdcts. 12mks N-2015.

 

  • Identify 2 ways of determining prices of a commodity other than price mechanism.

 

  • The table below shows a dd&ss schedule
Price ksh Qtydded Qtyss
450 10 70
400 20 60
350 30 50
250 40 40
150 50 30
50 60 20
10 70 10
  1. Use the dd&ss schedule 2 draw dd and ss curves. 2mks

 

  1. Equilibrium qty ,price and equilibrium point. 3mks

 

  • Excess dd&ss 3mks

 

  • With the aid of a diagram , explain the effect of a +ve shift in dd curve 4 a commodity on equilibrium price & output. 10mks N-12

 

  • Using a diagram, describe the effects of a +ve increase in dd on equilibrium price. 8mks J-15

 

TOPIC 5 : PRODUCTION THEORY

  1. Explain the ways in which an entrepreneur may increase the productivity of a land as a factor of prdctn. 10MKS J-14

 

  1. Outline the assumptions underlying the law of diminishing returns. 8mks N-12

 

 

  1. Describe the conditions necessary 4 operationsof the law of diminishing returns 2 apply in prdctn. 8mks N-14

 

 

  1. With the aid of a diagram, describe the optimum level of operations 4 a firm in long- run. 10mks N-2014

 

 

  1. Outline 4 conditions that are necessary for the law of diminishing returns 2 apply in prdctn. 8mks N-14

 

  1. Highlight the assumptions underlying diminishing returns 2 scale. 8mks J-13

 

  1. One of the categories of costs incurred in prodctn process are the margin costs. Describe the nature of these costs. 8mks J-13

 

 

  1. Profit is the reward 2 an entrepreneur as a factor of prodctn. Give three reasons why the reward 4 different entrepreneur may not be the same. 3mks

 

 

  1. Explain 6 problems of subsistence prdctn in an economy. 9mks J-12

 

  1. List 3 types of natural resources that maybe available 4 prdctninm a country. 3mks J -14.

 

  1. State 4 features of labour as a factor of prdctn 4mks J-2014

 

 

  1. The efficiency of labour in a country depends on a no. of factors. Highlight such factors (10mks N-2014

 

  1. State the ……………used in determination of average revenue 4 a prdct 2mks

 

=total product

No. of variable units

Marginal = change in total product

Change in qty (labor)

 

  1. Highlight 3 levels of production 3mks J-15

 

 

  1. State 4 factors that may determine the choice of method of prodn 2 be used by a firm. 4mks J-15

 

 

  1. Explain factors that may cause a shortage of labour supply 4 firms in a particular industry. 8mks J-15

 

 

  1. With the aid of a diagram explain the r/ship btwnfixed, variable & total costs of a firm. 12mks N-12

 

 

  1. Highlight the factors that determine efficiency of labor as a factor of prdctn. 8mks N-12

 

 

  1. Factors that determine ss of labour in a country 12mks N-12

 

  1. There are certain assumption necessary 4 the operation of law of diminishing utility. Highlight these assumptions. 10mks N-15

 

  1. The price of land in a certain region of country X has been rising rapidly. Explain the reasons that may account 4 such increase in price. 10mks N-15

 

 

  1. Explain factors that may determine ss of labour as a factor of prodn in a country. 12mks N-15

 

 

  1. Outline the conditions necessary 4 operation of law of diminishing returns. 8mks N-15

 

  1. State 3 features of capital as a factor of prodn. 3mks N-15

 

 

  1. One of the levels of prodn is tertiary level. Highlight 6 types of bs enterprises that would be involved in this level. 9mks N-15

 

 

  1. There are certain decisions that a producer needs 2 make due 2 scarcity of resources. Highlight such decisions.12mks

 

 

  1. There are certain factors that influence dd 4 labour by a firm. Highlight such factors. 10mks

 

  1. Explain the conditions that may influence the productivity of an entrepreneur as a factor of prodn. 10mks

 

  1. Explain the conditions that may laed to increase in ss of labor to a firm. 10mks

 

 

  1. With the aid of a diagram, explain the relationship of short-run average cost curves of a firm. 10mks

 

  1. Explain the meaning of the following tools of unionism, collective bargaining, mediation, arbitration strike. 8mks

 

  1. In recent past kenya has bn embracing the policy of …………Industrialization. Highlight 5 adv of such a move. 10mks

 

 

TOPIC 6 : THEORY OF THE FIRM.

  1. Most manufacturers are opting 2 locate their plants in the outskirts of the main urban centres away from the already established industrial areas. Explain the reasons for such a move. 10mks J-14

 

 

  1. Explain the economies of scale that a firm can enjoy frm its own growth. 12mks N-2012

 

 

  1. List 3 types of service industries that may be found in a country. 2mks

 

 

  1. Highlight 6 types of internal economies of scale that a firm can derive frm large scale operations. 9mks n-14

 

 

  1. The availability of certain services in an area tend 2 attract industries into the area. Give such services. 4mks 2012

 

 

  1. Roles played by the private sector in kenya economy 4mks J-15

 

 

  1. Outline 6 factors that may determine distribution of industries in an economy. 9mks J-15

 

 

  1. There are certain features that tend 2 describe a firm. State 3 such features. 3mks

 

 

  1. The mgt of x ltd, a newly established firm, have decided 2 locate the firm near other similar firms. Explain the external diseconomies that the firm may experience frm this choice of location. 8mks

 

  1. Explain the external economies of scale that a firm may derive frm the expansion of the industry in which it operates. 10mks.

 

 

TOPIC SEVEN : MARKET STRUCTURES

  1. With the aid of a diagram, explain hw a firm under perfect competation operates at optimal capacity in long run. 12mks J-14

 

  1. Explain ways in which a monopoly firm may be of benefit to consumers. 10mks J-14

 

 

  1. Highlight the conditions necessary 4 amkt 2 exist. 8mks N-14

 

 

  1. There are certain critism that are leveled against monopoly firms. Explain these critism. 10mks N-14

 

 

  1. State 4 xtics of a monopoly market. 8mks N-14

 

 

  1. Describe 4 features of an iligopoly market. 8mks N-14

 

 

  1. Exlain conditions necessary 4 perfect competition in industry. 12mks J-13

 

 

  1. State 3 features found in both the pure monopoly and in monopolistic competition. 3mks J-12

 

  1. There are certain factors that may cause a market 2 be imperfect. Highlight4 such factors 8mks J-12

 

  1. Highlight features of a perfect market structure in a country. 10mks J-15

 

  1. Puwa Ltd, a multinational corporation operates as a monopoly. Outline theforcesfrm where thy might have derived its monopolistic powers frm 8mks

 

 

  1. State 3 circumstances under which a firm operating under perfect completion conditions may operate at shut down point. 3mks

 

 

  1. Explain 4 disv of monopolistic competition 2 an economy. 9mks J-15

 

 

  1. With the aid of a diagram, explain the ways in which equilibrium level of a firm operating as a monopolistic is determined. 8mks J-15

 

 

  1. Outline the sources frm which a firm cld derive its monopoly power. 8mks n-12

 

 

  1. With the aid of a diagram, explain the concept of the kinked dd curve as it applies in an oligopolistic mkt structure. 12mks N-12 DHR

 

 

  1. Highlight conditions necessary 4 operation of a perfect competitive structure. 12mks N-15

 

 

  1. With the aid of a diagram, explain ways in which a firm may incur losses in short run. 12mks N-15

 

  1. Explain the features of the oligopoly form of market situation. 10mks N-15

 

 

  1. State 4 xtics of monopolistic competition mkt situation. 4mks N-15

 

  1. Highlight 6 conditions necessary 4 a perfect competition mkt structure. 9mks

 

  1. Explain the circumstances under which it may be necessary 2 have a firm operate as a monopoly in an industry. 10mks N-15.

 

 

  1. John Kinyua, a student of economics persuing CPA is concerned that oil producing co. in his country are quick to adjust their selling prices upwards when prodn _cost increases& slow 2 re-adjust selling prices downwards when prodn cost falls. Required
  2. State 5 salient features of oil mkt in John country. 5mks

 

 

  1. With the aid of a well labeled diagram discuss the behavior of oil producing co. in this country. 5mks

 

 

TOPIC 8: NATIONAL INCOME

  1. Although country x has been experiencing a high growth rate in its Gross National Product the poverty levels in the country have been increasing. Explain the factors that may account 4 this anomally. 10mks J-14

 

 

  1. With the aid of a diagram, explain the circular flow of income in a 2 sector economy   8mks N-12

 

 

  1. You have bn provided with the Net National Prdct at factor cost for a certsin country. Outline the adjustments that you may be rqrd 2 make 2 get the gross Domestic Product at mkt prices 4 the country. 8mks N-

 

  1. There are certain aspects of expenditure that are considered when measuring National Income of a country through expenditure approach. Outline the aspects of expenditure. 12mks J-13

 

 

  1. State 3 factors that may influence the level of business savings. 3mks J-12

 

  1. Identify 4 factors that would determine the size of national income of a country 4mks J-14

 

  1. Country Y is in process of compiling the national income figures. Explain the uses of such figures. 12mks J-15

 

  1. Explain the reasons that limit the value of no. as a basis of comparison over long periods of time 10mks  J-15

 

 

  1. Explain 4 benefits that may accrue 2 a developing country in measurement of national income 8mks J-15

 

  1. Country x operates as an open economy. Describe 4 types of injection that may enter into economy. 8mks. J-15

 

  1. In economy x, 10% of popconrol 80% of national income of country. State 3 posiible benefits of income distributin to country. 3mks J-15

 

  1. One of the mtds of measuring N.I of a country is expenditure approach. Describe the items of expenditure that shld be included in this approach. 8mks. N-12 DHRM3

 

 

  1. Outline the reasons that make it necessary 4 a country 2 measure its national income. 10mks N-12

 

  1. The size of a nations national income depends on various factors. Explain those factors. 10mks N-15

 

  1. Most countries are increasingly adopting use of national income accounts (or social accounts) in measuring I. explain reasons that may account 4 this trend. 10mks N-15

 

  1. Explain the weaknesses of using per capita income as amtd of measuring stds of living of people in a country. 8mks

 

TOPIC9 :MONEY AND BANKING.

  1. There is ltd use of credit cards in rural areas of kenya. Explain the factors that may account 4 the limited use. 8mks J-14

 

  1. Describe the fuctions of money in an economy. 8mks J-14

 

  1. Debit cards have bcome a popular form of money in most parts of the world. Outline the reasons that may account 4 this popularity. 12mks N-12

 

 

  1. Highlight the functions of commercial banks in an economy. 12mks N-14

 

 

  1. One of the functions of central bank is 2 control money ss in country. Highlight 6 ways in which the bank may carry out this function. 9mks N-14

 

  1. Describe xtics necessary 4 commodity 2 serve as money. 12mks J-13

 

  1. State 3 ways in which central bank performs its functions of controlling money ss in an economy. 3mks J-12

 

  1. State 4 weaknesses of paper money as a medium of exchange. 4mks 12

 

  1. Highlight 6 reasons why most people in rural areas in Kenya do not operate bank accounts. 9mks J-12

 

  1. One of early forms of money was commodity money. Identify 3 factors that ltd effectiveness of this form of money as a medium of exchange. 3mks J-14

 

  1. Identify 3 types of NBFI that may be found in Kenya. 3mks J-14

 

  1. One of the functions of money is 2 serve as a unit of a/c. state 3 qualities that money shld have 4 it 2 perform this function. 3mks J-15
  2. Outline 6 measures that a central bank may take 2 reduce cr creation ability of commercial banks. 9mks J-15

 

  1. Highlight the services offered by merchants banks 2 corporate customers apart frm taking deposits & giving loans. 12mks J-15

 

  1. Describe the stages through which money was evolved upto [present form. 12mks N-12

Commodity- metallic- paper- credit/plastic

 

  1. Co-operative societies have bcam popular form of bs org’ in Kenya. Highlight factors that may account 4 this popularity. 10mks N-12

 

 

  1. For an item to perform effectively as money,it must possess certain xtics. Highlight this xtics. 10mks N-15

 

  1. Identify 4 NBFIs that operates in Kenya 4 mks N-15

 

  1. Outline 4 services that a commercial bank may provide 2 bus’enterprise. 8mks N-15

 

 

  1. Country Y has afiled 2 control its money ss thro’ the interventions by its central bank. Explain the reasons that may account for failure by the Central Bank. 10mks N-15

 

  1. State n explain 5 monetary measures adopted by the centrasl bank of any country 2 control ss of money in circulation. 10mks N-11

 

  1. State n explain 4 functions of money. 8mks N-11

 

  1. One of the main function of central bank is 2 act as the “commercial bank’s bank. Eaxplain 5 main function it perform in such amove. 10mks N-14

 

  1. Features of a fixed deposit a/c. 10mks J-14

 

  1. Explain the meaning of monetary policy. 2mks J-12

TOPIC 10 : PUBLIC FINANCE

  1. The director of the revenue authorities in country X recommended an increase in rate of taxation in the country. Explain the reasons that may have influenced the director 2 make the recommendations. 10mks J-14

 

  1. Expain the factors that a govtshld consider in allocating finances 2 its various areas of expenditure. 10mks. N-14.

 

  1. Outline the purposes 4 which a govt can impose taxes as a way of raising revenue. 10mks N-14

 

  1. List 3 sources of govt revenue other than taxes n borrowing 3mks Nov-14

 

  1. Outline 4 sources frm which a govt can borrow money. 8mks N-14

 

 

  1. Explain the factors that a govtshd consider when choosing btwn internal & external borrowing as a way of raising finance. 8mks J-13

 

  1. One of the ways 2 improving regional income distribution is by dispensing industrial dvpt to rural areas. Outline measures the govt may take 2 achieve this objective. 9mks J-12

 

  1. Highlight 4 uses of of national budget 2 an economy 8mks j-12

 

  1. List 4 types of indirect taxes levied on gds in Kenya 4mks J-14

 

  1. There are certain limitations of levying heavy direct taxation on consumers. Explain those limitations 10mks J-15

 

  1. Summarize 5 functions of budgeting 2 the govt Kenya 10mks J-15

 

  1. Discuss 5 causes of income inequalities in Kenya. 10mks J-15

 

  1. Describe 5 typesof taxes imposed on income in E.A. 10mks J-15

 

  1. State four factors that have led to widening gap in income distribution in Kenya. 4mks

 

  1. Define fiscal policy. 2mks j-15

 

  1. Explain 5 effects of devolution on Kenyan economic fiscal policies. 10mks j-15

 

  1. Explain 4 justification of taxation in Kenya. 8mks

 

  1. State 3 demerits of using V.A.T as a ways of raising govt revenue 3mks j-15

 

  1. Highlight the types of non-recurrent expenditure that may b incurred by a govt. 8mks n-12

 

  1. Explain reasons that make indirect taxes 2 be considered as productive 2 some govt. 10mks N-12

 

  1. Taxation is meant 2 enable govt undertake certain activities explain those 10mks N-15

 

  1. One way of facilitating the rate of a country economic growth is through external borrowing. Explain the adv. Of such borrowing. 8mks N-15

 

  1. State 4 measures that may be taken by govt 2 reduce income inequalities 4mks N-15

 

  1. Explain 4 basic principles that a good taxsys must fulfill. 12mks n-15

 

  1. Describe 6 methods of public debt redemption by govt of Kenya. 12mks N-15.

 

  1. Explain 5 reasons for the increase in public expenditure in most African countries. 10mks N-15.

 

  1. Highlight the adv of indirect taxes as a mtd of raising govt revenue.12 mks

 

  1. There has been continuous rise in incomes of rural communities in country. Highlight the reasons that may account 4 this rise. 12mks

 

  1. State and explain 5 causes of inequality in distribution of national income. 10mks

 

  1. Distinguish btwn direct n indirect tax. 4mks

 

  1. State n explain 3 advantages of direct tax. 6mks

 

  1. State n explain 6 sources of govt 12mks

 

  1. Explain the meaning of income distribution. 2mks.

 

  1. State n explain 4 arguments in favour of distribution of income. 8mks.

 

  1. Describe 5 principles a govt must take into consideration when arranging 4 its expenditure. 10mks

 

  1. Explain 6 factors that influence taxable capacity of a country. 10mks

 

  1. Describe 5 causes of an increase in public debt in a country. 12mks

 

  1. Explain 5 benefits that accrue 2 a country that adopts equitable distribution of nationalincome. 10mks

 

  1. Differentiate direct & indirect tax, progressive and regressive taxes. 8mks
  2. Describe 4 causes of economic inequality. 8mks

 

 

TOPIC 11 : INFLATION

  1. Country x has been experiencing a high rate of inflation. Outline the non-monetary measures the country can take 2 reduce inflation. 10mks J-14
  2. The level of inflation in any x has risen to very high levels. Explain the negative impact of inflation on the economy of the country. 10mks N-12
  3. A certain country has experienced high level of inflation in recent past. Outline –ve consequences of such inlation. 10mks. N-14
  4. Country x has bn experiencing a relatively high rate of inflation 4 past 1 yr. explain possible adverse effects of such inflation on economy of the country. 8mks. J-13
  5. Explain the factors that coul;d contribute 2 cost push inflation in a country. 10mks J-15
  6. Country M has been experiencing a double digit rate of inflation. Analyse 6 effects of inflation on prodn in economy. 12mks J-15
  7. Explain the meaning of creeping, walking, running, galloping inflation. 4mks J-15
  8. Explain the following inflation control measures, bank rate policy 4mks J-15
  9. Define inflation. 8mks. J-14
  10. Explain 4 consequences of inflation. 8mks J-14
  11. State 3 factors that may lead 2 cost push inflation in a country. 3mks J-15
  12. Describe the monetary measures that amy be used to control inflation in a country. 8mks N-14
  13. Explain the –ve consequences of high rate inflation in a country. 10mks N-15
  14. State 3 indicatory of inflation in a country. 3mks  N-15
  15. Explain 4 effects of inflation on functions of money. 8mks  N-15
  16. Discuss 4 major anti-inflatory fiscal measures used by various countries. 8mks  N-15
  17. Explain the positive effects that inflation may have on an economy. 8mks
  18. Explain the meaning of cost push inflation. 10mk
  19. Highlight 4 types of inflation tendencies that may affect economy of a country. 8mks
  20. Explain a) anticipated inflation, demand pull inflation n costpush inflation. 6mks

 

 

TOPIC 12  :   INTERNATIONAL TRADE.

  1. Explain ways in which a country would benefit frm engagingin free international trade.12mks J-14
  2. Country Y would like 2 restrict imports as a way of correcting persistent deficit in B.O.P. outline ways in which the country can restrict the imports. 12mks N-12
  3. Country X has experienced unfavourable B.O.T with a trading partner   . explain the measures that the country could take to rectify the situation.  8mks  N-14
  4. State 3 conditions that are necessary 4 international trade to take place. 3mks N-14
  5. Highlight 6 reasons that make a country 2 impose trade restrictions in international trade. 9mks N-1
  6. Highlight the assumption underlying in international trade . 12mks J-13
  7. List 3 items commonly found in capital A/c of B.O.P A/C. 3mks   2012
  8. State 2 reasons that may make ADB 2 adequately finance dvpt projects in its member countries. 2mk
  9. Country A has experienced a rapid increase in consumption of improved prdcts in economy. Outline 4 possible causes of increase in import substitution. 8mks
  10. Explain 4 benefits Kenya small scale industries would receive frm formation of E,A.C . 5mks   J-12
  11. The theory of comparative adv. Has certain assumptions. Outline those assumptions. 10mks J-15
  12. Country Z intends to be a member of COMESA ( Common Market for External & Southern African). Evaluate 5 benefits that the country may derive such a move .   J-15
  13. Explain 5 approaches that can be used 2 restrict enry of foreigh gds in Kenya.   J-15
  14. Outline 3 disdvantage of using as a mtd of restricting imports into the country. 3mks J-14
  15. Country X has bn experiencing deficit in B.O.T . explain 4 measures the country shld take 2 reducesuch deficit. 8mks J-15.
  16. The most common means of restricting international trade is through import restriction. Explain the main forms of such restriction. 10mks N-15
  17. Explain the term B.O.P 2MKS n-15
  18. Argue the case against free trade protection and international trade. 10mks N-15
  19. Explain 5 main objections of IMF. 10mks
  20. Distinguish btwn balance of trade & B.O.T payments. 6mks
  21. Explain 5 factors that influence a country to adopt a protectionist policy in international trade. 10mksJ-12

Describe the terms below.

I Quota

Ii Exchange control system

iii. import deposit sch

  1. trade agreements
  2. subsidies

 

TOPIC 13:  POPULATION & UNEMPLOYMENT

  1. Highlight the condition under which a country may encourage an increase in growth of its pop. 10mks  j-14
  2. Outline the measures that the govt of a country can take 2 alleviate the problem of open – urban unemployment. 8mks N-14
  3. Explain the types of employment situations that can be experienced in a country. 10mks N-14
  4. List 3 ways in which the pop of a country can be structured. 3mks
  5. The level of unemployment in country x is alarming2 our govt. explain 6 measures that hjte govt cld take to minimize the problem. 9mks N-1
  6. A ceratin country has been over-burdened by an ageing population
  7. Outline 6 factors that may weaken bargaining power of a trade union. 9mks J-12
  8. One of the causes of high pop growth in Kenya is high birth rate. Give 3 possible causes of such high birth rates. 3mks J-14.
  9. Explain the common causes of unemployment in developing countries. 10mks  J-15
  10. Explain open,under,disguised, structural, educational unemployment.
  11. Explain 3 causes of employment in Kenya. 3mks J-15
  12. State 3 factors that may cause structural unemploymeny in a country. 3mks J-15
  13. Explain 4 factors that may determine the level of employment in a country. 8mks J-15
  14. Explain the different forms of unemployment that amy be experienced in a country. 10mks DHRM3
  15. Expalin the possible adverse economic effects of an ageing pop 12mk
  16. Country X has bn experiencing a high rate of unemployment in its economy. Explain the measures that it could take to control this. 12mks N-15
  17. State 4 factors that may account 4 high birth rate in a country 4mks N-15
  18. Discuss 5 policy measures country X can take to curb unemployment. 10mks N-15
  19. Explain 4 ways in which over-pop in a country ia an impediment 2 economic growth. 8mks N-15
  20. State & explain 6 types of soctual unemployment. 12mks
  21. Explain the meaning of the following typs of unemployment
  22. Structural
  • Frictional
  • Seasonal
  • cyclical

 

  1. explain 5 adv of pop increase 2 a country’s economy. 10mks
  2. state an dexplain 7 mtd that can be applied 2 control unemployment.  14mks
  3. explain the meaning of terms below,

I demorgraphy

Ii demographic

Iii transition theory

Iv ageing pop

V declining pop

 

TOPIC 15 : BUSINESS ORGANISATION

 

  1. State 4 limitation of running business as a sole partnership. 4mks J-12
  2. Explain 4 reasons that would make it necessary 4 govt 2 sell its stake in a public corporation. 8mks J-12
  3. State 3 xticcs of a co-operative society as a bus org. J-12
  4. High 6 disadv of public ltd as a form of bus org. J-14
  5. Co-opeartive societies have become a popular form of bus org in Kenya. Highlight factors that amy account 4 this popularity. 10 mks N-12
  6. Benefit of saving in a SACCO

 

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