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General Economics Question Paper

General Economics

Course:Diploma In Information Technology

Institution: Kca University question papers

Exam Year:2010

UNIVERSITY EXAMINATIONS: 2009/2010
STAGE IV EXAMINATION FOR DIPLOMA IN INFORMATION
TECHNOLOGY
DIT 404: GENERAL ECONOMICS
DATE: AUGUST 2010 TIME: 1½ Hours
INSTRUCTIONS: Answer any THREE questions
QUESTION ONE
a) Distinguish between the movement along the supply curve and the shift of the supply curve.(Use
an illustration) (6 Marks)
b) State the effect of the following factors on demand of a commodity and illustrate the direction of
the shift
i) Increase in the level of advertisement of the commodity
ii) Increase in the income of the consumer.
iii) Fall in price of a substitute. (9 Marks)
c) Distinguish between an indifference curve and production possibility frontier. (5 Marks)
QUESTION TWO
a) Economics is concerned with the allocation of resources; by answering the three fundamental
economic problems discuss the three economic questions in an economy. (6Marks)
b) Highlight six (6) features of a free market economy. (6 Marks)
c) Give six (6) advantages of command economy (6 Marks)
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d) Highlight any two characteristics of economic resources. (2 Marks)
QUESTION THREE
a) Highlight the obstacles that Kenya may be facing such that development by 2030 may not be
possible and suggest possible solutions to deal with these obstacles. (10 Marks)
b) Agriculture as a major sector in our economy has been experiencing low prices for its products
and income from it has been low. Give the reasons why this has been happening and suggest
possible ways that could be implemented in this sector to assure farmers income from agriculture.
(10 Marks)
QUESTION FOUR
a) Highlight five effects of price controls in an economy. (5 Marks)
b) Highlight five effects of inflation in an economy (5 Marks)
c) Suggest possible ways of solving inflation in an economy. (10 Marks)
QUESTION FIVE
a) Give five features of perfect competition market. (5 Marks)
b) Highlight five sources of a monopoly (5 Marks)
c) Highlight the advantages of international trade to an economy. (5 Marks)
d) Developing countries face unfavourable balance of payment highlight causes of this. (5Marks)

General Economics Question Paper

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