(a) What is incidence of taxes? [4 marks]
(b) Explain any four principles of taxation [16 marks]
(a) What is a commercial bank? [4 marks]
(b) Describe any four ways by which the Central Bank controls the amount of credit given by the commercial bank [16 marks]
(a) Explain the function of money as a (i) measure of value [5 marks] (ii) store of value. [5 marks]
(b)Show how inflation affects these two functions of money [10 marks]
(a) Distinguish between location of industries and localization of industries [5 marks]
(b) Describe any three advantages and any two disadvantages of locating industries in rural areas [15 marks]
(a) What is privatization? [4 marks]
(b) Give four reasons for government participation in economic activities in your country [16 marks]
(a) What is a partnership? [4 marks)
(b) State any two advantages and any two disadvantages of a partnership [16 marks]
(a) Explain with examples the following types of production (i) Primary [4 marks] (ii) Secondary [4 marks] (iii) Tertiary [4 mark]
(b) Give two reasons why primary production pre-dominates in developing countries [8 marks]
(a) What is the equilibrium of a consumer? [5 marks]
(b) Explain how a consumer attains equilibrium in spending his income. [15 marks]
(a) Define increase in supply. [4 marks]
(b) With the aid of diagrams, explain the effect of an increase in the supply of fish on the price of beef [16 marks]
With an appropriate illustration, explain the circumstance in which an increase in output of a producer would
(a) decrease his sales revenue [10 marks]
(b) increase his sales revenue [10 marks}
The table below represents the cost function of a poultry farm. The price of a crate of egg is $21. Use the information contained in the table to answer the questions that follow.
| Quantity of eggs (in crates) | Total cost (in $) |
| 0 | 50 |
| 1 | 55 |
| 2 | 62 |
| 3 | 75 |
| 4 | 96 |
| 5 | 125 |
| 6 | 162 |
| 7 | 203 |
| 8 | 248 |
(a) What Is the fixed cost of the farm? (2 marks]
(b)(i) Calculate the marginal cost at each level of output. [9 marks]
(ii) What is the profit maximizing output of the farm? [3 marks]
(c) Draw the demand curve for the farm. [6 marks].
The table below represents a travellers’s consumption of bottles of Coca-Cola. Study the table carefully and answer the questions that follow.
| No. of Bottles | Total Utility | Marginal Utility |
| 1 | 15 | 15 |
| 2 | 29 | F |
| 3 | 42 | 13 |
| 4 | D | 12 |
| 5 | 65 | G |
| 6 | 75 | H |
| 7 | E | 0 |
(a) Complete the missing figures D, E, F, G and H (5 marks)
(b) Draw the demand curve for the traveler’s consumption of Coca-Cola. (The use of a graph sheet is essential) [10 marks]
(c) Explain the law of diminishing marginal utility as the basis for the slope of the traveler’s demand curve. [5 marks]
Which of the following is not an international economic organization?
- A. Economic Commission for Africa (ECA)
- B. African Development Bank (ADB)
- C. World Health Organization (WHO)
- D. International Monetary Fund (IMF)
Which of the following is not a member of the Economic Community of West African State (ECOWAS)?
- A. Cape Verde
- B. Senegal
- C. Cameroon
- D. Niger
In order to stabilize oil price in the world market, there is the need for OPEC members to
- A. always have budget deficit
- B. encourage competition among themselves
- C. adhere to production quotas
- D. fix the price of non-oil products
A country’s balance of payment is deficit when
- A. a country's payment for imports of visible goods are greater than her receipts from exports of visible goods
- B. the total receipts from her exports of visible and invisible goods are greater than her payments for visible and invisible imports
- C. it can record a surplus on current account of her balance of payment accounts
- D. the total payment for visible and invisible imports are greater than the total receipts from her exports of visible and invisible goods
Which of the following group of accounts make up the balance of payments?
- A. the current account multiple account and capital account
- B. Monetary movement account;company account and international account
- C. cash acount; double entry account and current account
- D. Capital account; current account and monetary movement account
Dumping means the selling of a good in a foreign market at a price that is
- A. below the home market price
- B. above the home market price
- C. equal to the home market price
- D. able to clear the home market price
When the demand for a good is fairly inelastic, the burden of an indirect tax falls
- A. more on the consumers of the goods
- B. more on the sellers of the goods
- C. on sellers and consumers equally
- D. completely on the capital
A component of the national debt of a country is
- A. taxation
- B. bank saving
- C. the budget
- D. treasury bills
Excise duty is levied on
- A. the total population
- B. local products
- C. luxury goods
- D. the working population