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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: 2008/2009
STAGE IV EXAMINATION FOR DIPLOMA IN INFORMATION
TECHNOLOGY
DIT 404: GENERAL ECONOMICS
DATE: APRIL 2010 TIME: 1½HOURS
INSTRUCTIONS: Answer any THREE questions
Question One
(a) Distinguish between the movement along the demand curve and the shift of the demand curve.
(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 price of a complementary good.
ii) Increase in the income of the consumer.
iii) Future expectation of price increase. (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, outline three resource allocation
decisions made in an economy. (6 Marks)
b) Distinguish between a free market economy and the planned economy highlighting the
features on each economic system. (11 Marks)
c) Highlight three characteristics of economic resources. (3 Marks)
2
Question Three
a) Labour as a factor input in production has been facing immobility, outline at least five barriers to
mobility of labour and suggest some possible ways to improve the mobility of labour. (10 marks)
b) Agriculture as a major sector in our economy has been experiencing low prices for it 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 features of perfect competition market. (10 Marks)
b) Highlight five sources of a monopoly (10 Marks)
Question Five
(a) Highlight the advantages of international trade to an economy. (5 Marks)
(b) Distinguish between balance of trade and balance of payment. (5 Marks)
(c) Outline the features of developing countries. (10 Marks)
.

General Economics Question Paper

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