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Dbit 201 Micro Economics Question Paper

Dbit 201 Micro Economics

Course:Diploma In Business Information Technology

Institution: Kca University question papers

Exam Year:2012

1
UNIVERSITY EXAMINATIONS: 2011/2012
EXAMINATION FOR THE DIPLOMA IN BUSINESS INFORMATION
TECHNOLOGY
DBIT 201 MICRO ECONOMICS
DATE: MARCH, 2012 TIME: 1½ HOURS
INSTRUCTIONS: Answer Any Three Questions
QUESTION ONE
a) Define the terms scarcity, choice and opportunity cost as used in economics and show how they
are connected. (5 Marks)
b) Define the term human wants, outlining how they are classified and their features. (5 Marks)
c) Distinguish between the free market system and the planned economy by giving the at least 5
features on each. (10 Marks)
QUESTION TWO
a) Discuss any five factors affecting individual’s demand for a commodity. (10 Marks)
b) Outline 4 characteristics of economic resources in an economy (4 Marks)
c) Using an illustration, distinguish between the movement along the demand curve and shift of the
demand curve. (6 Marks)
QUESTION THREE
a) Discuss the five types of price elasticity of supply. (10 Marks)
b) Discuss 5 factors affecting price elasticity of supply. (10 Marks)
2
QUESTION FOUR
a) Discuss any 4 features of perfect competition market (8 Marks)
b) Discuss any 4 sources of monopolies in an economy (8 Marks)
c) Discuss any 4 disadvantages of monopolies in an economy (3Marks)
QUESTION FIVE
a) Discuss 7 advantages of price controls in an economy. (6 Marks)
b) Kenyan farmers have been experiencing low incomes from agriculture, give at least 7 reasons
why this has been the case and suggest possible measures to solve this problem. (14 Marks)

Dbit 201 Micro Economics Question Paper

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