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General Economics Question Paper

General Economics

Course:Bachelor Of Science In Information Technology

Institution: Kca University question papers

Exam Year:2011

UNIVERSITY EXAMINATIONS: 2010/2011
FIRST YEAR STAGE EXAMINATION FOR THE DEGREE OF BACHELOR
OF SCIENCE IN INFORMATION TECHNOLOGY
BIT 1308: GENERAL ECONOMICS
DATE: APRIL 2011 TIME: 2 HOURS
INSTRUCTIONS: Answer question ONE and any other TWO questions
QUESTION ONE
a) Distinguish between movement along the supply curve and shifts in the supply curve.
(4 Marks)
b) Clearly state the exceptions of the law of demand. (4 Marks)
c) Explain the importance of studying economics to any citizen of a county. (6 Marks)
d) Economic growth and development are drivers to stimulating economic activities in a country.
Explain why developing countries have lagged behind in achieving economic growth and
development. (10 Marks)
e) Using a diagram, explain the concept of market equilibrium and illustrate the effect of increase in
taxes on the demand and price of a commodity. (8 Marks)
QUESTION TWO
a) Explain the importance of occupational mobility of factors of production in a country.
(8 Marks)
b) As a newly employed I.T graduate, you are to present a paper to the ministry in charge of
technology on how I.T can boost economic growth. Write the report in response to the assignment.
(12 Marks)
2
QUESTION THREE
a) Given the cost function below:
TC = 60 + 20Q – 14Q2 + 4Q3
Determine
i) The Average Cost Function (AC) (2 Marks)
ii) The Average Variable Cost Function(AVC) (2 Marks)
iii) The average Fixed Cost Function. (2 Marks)
iv) The Marginal Cost Function. (2 Marks)
v) If the level of output is given as I0 what will be the total marginal cost?
(2 Marks)
b) Using diagrams, explain a monopoly market structure making supernormal profits clearly stating
its characteristics. (10 Marks)
QUESTION FOUR
a) Argue for and against foreign aid to developing countries. (10 Marks)
b) Explain the sources of monopoly powers that make monopoly markets hinder new entrants.
(10 Marks)
QUESTION FIVE
a) Using examples, write brief notes on:
i) Market demand. (2 Marks)
ii) Competitive demand. (2 Marks)
iii) Production possibility curve. (2 Marks)
iv) Economic integration. (2 Marks)
v) Trade protection. (2 Marks)
b) Inflation is a necessary evil to economic growth and employment creation. Discuss. (10 Marks)

General Economics Question Paper

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