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Q.Explain the following terms:-e) Balance of Payment. (4 marks)(4 marks, 2011 Q8e)What do you understand by “Balance of Payment”?A.Balance of Payment (BoP) of a country is defined as, “Systematic record of all […]

Q.Explain the following terms:-a) Gross Domestic Productb) Direct Taxc) Indirect Taxd) Consumer Price Indexe) Balance of Payment(20 marks, 2011 Q8)What are direct and indirect taxes?  List out their […]

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 Domestic Product – GDP is […]

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 marks)

(20 marks, 2011 […]

Q.How to measure National Income? What are the common measurements of National Income?A.National income is the total income of a nation. It can be interpreted as Output, Expenditure or Income. For example, if a […]

Q.Discuss the problems encountered in calculating the National Income.A.The main difficulties which are involved in the measurement of national income are following: In the fewer developing countries, the accurate […]

Q.What are the uses of National Income figures?A.Uses of National Income Statistics:-1:National Income as a measure of economic growth – Estimates of national income at constant prices indicate economic growth of […]

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 income. (15 […]

Q.
b) Discuss the meaning of inflation and the measures implemented by the government to control inflation.

(12 marks, 2011 Q5b)

A.
In economics, inflation is a sustained increase in the general price lev […]

Q.What is the meaning of money?A.Money is used to equate to ‘wealth’, like Bill Gates has so much money that he can buy almost everything.However, in economic terms, Money is “the set of assets in the economy that […]

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.

(12 marks, 2011 […]

Q.a) Explain the meaning of “economics of scale” and distinguish between internal and external economies. (10 marks)(20 marks, 2011 Q4a)A.The differences between internal and external economies:​Internal e […]

Q.What are the common curves that are plotted in the study of costs? What are the two axis? In your own language, explain why in real life, marginal cost may initially reduce and gradually rise in an increasing […]

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. Show in […]

Q.What is ‘kinked’ demand in a oligopoly?A.Oligopoly is characterized by a market structure with a few large sellers, where any price movement would have effects on the preference of buyers to switch sellers as […]

Q.
a) Discuss the characteristics of the following market structure. Support your answer with examples.

i) Perfect competition (5 marks)
ii) Monopolistic competition (5 marks)

b) Monopoly is defined as a […]

Q.Define market structure of a monopoly and illustrate the equilibrium position in a short-run and in the long-run.A.Monopoly is defined as *being sole seller of a product without any close substitute.* Mankiw, N […]

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) Monopoly (8 marks)

b) […]

Q.Explain the concept of Production Possibility Curve and support your answer with examples and diagrams.A.Resource of diagram are […]

Q.What do you understand by an “indifferent curve”. Illustrate your point with a diagram.A.An indifference curve is a graph showing different bundles of goods between which a consumer is indifferent. That is, at […]