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Trial Paper Question Paper

Trial Paper

Course:Secondary Level

Exam Year:2004

Business studies
Paper 2
Time: 21/2 hours
1a) Explain four ways in which a policy to use local appropriate technology will assist in reducing unemployment. 8 marks
b) Explain 6 factors that may influence the choice of a distribution channel for products. 12 marks
2a) explain 3 ways in which each of the following internal economies of scale may lead to falling average costs of production in the long run:
i. Technical economies
ii. Marketing economies 12 marks
b) The following information relates to Marafiki traders for the year 2005
• Turnover sh 5400000
• Expenses sh 800000
• Margin 40%
• Stock turnover is 6 times
Calculate:
i. Gross profit
ii. Cost of sales
iii. Net profit
iv. Average stock. 8 marks

3a) Explain the benefits a country in a common market block is likely to get. 10marks
b) Explain how measures which can be used to control inflation can lead to unemployment in a country. 10 marks
4a) the following table shows the growth rate of GDP of country Z for 4 years:
Year GDP
2001 10.1%
2002 8.2%
2003 6.3%
2004 3.3%
Highlight 5 circumstances under which the standards of living of the citizens of the country referred to above may not necessarily have been lower in 2004 than in 2001. 10 marks
b) Explain 5 disadvantages of excessive internal borrowing to finance government recurrent expenditure. 10 marks
5a) discuss the factors that would influence the amount of money an individual may hold for a transaction motive. 10 marks
b) Discuss 5 factors which may influence a country to adopt a protectionism policy in international trade. 10 marks
6a) discuss 5 problems facing developing countries in formulating their development plans. 10 marks
b) With the aid of diagram, explain the effect of a positive shift in the supply curve for a commodity on equilibrium price and output. 10 marks

Trial Paper Question Paper

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