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General Economics Question Paper

General Economics

Course:Bachelor Of Science In Information Technology

Institution: Masinde Muliro University Of Science And Technology question papers

Exam Year:2011

EXAMINATION FOR THE DEGREE OF BACHELOR OF
SCIENCE IN BUSINESS MANAGEMENT
BIT 1308: GENERAL ECONOMICS
DATE: APRIL 2010 TIME: 2 HOURS
INSTRUCTIONS: Answer question ONE and any other TWO questions
QUESTION ONE
(a) Argue for and against a free economic system in a country. (12 Marks)
(b) Explain six factors that determine market demand of a product. (6 Marks)
(c) Distinguish between occupational and geographical mobility labour. (2 Marks)
(d) Explain 5 types of unemployment stating clearly how they can
be alleviated. (10 Marks)
QUESTION TWO
(a) Using a diagram, explain the three stages associated with the law of diminishing returns.
(8 Marks)
(b) Argue for and against economic integration by a country. (12 Marks)
QUESTION THREE
(a) Clearly highlight the advantages and disadvantage of foreign aid to a country. (10 Marks)
(b) The total cost equation in the production of shoe polish at some industry is given as follows:
TC = 1000 + 100Q – 15Q2 + Q3
Where TC = Cost in shillings
Q = Quantity in kilograms
i) Compute the Variable and average costs at the output level of 10 and 11
kilogrammes. (6 Marks)
ii) What is the marginal cost of the 12th kilogramme? (4 Marks)
QUESTION FOUR
(a) Using a diagram, explain a monopolistic market structure making supernormal profits clearly showing the MC, AC, AR and MR curves. (6 Marks)
(b) Explain the factors responsible for wage differentials between occupations. (8 Marks)
(c) Highlight six principles of taxation according to Adam Smith. (6 Marks)
QUESTION FIVE
(a) Explain factors that have led to underdevelopment in most countries in the world. (10 Marks)
(b) Explain the effects of inflation in an economy. (10 Marks)`

General Economics Question Paper

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