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Hrd2103: General Economics Question Paper

Hrd2103: General Economics

Course:Bachelor Of Computer Science

Institution: Dedan Kimathi University Of Technology question papers

Exam Year:2012

KIMATHI UNIVERSITY COLLEGE OF TECHNOLOGY
UNIVERSITY EXAMINATIONS 2011/2011
SPECIAL/SUPPLEMENTARY EXAMINATION FOR:
FIRST YEAR DEGREE IN BACHELOR OF SCIENCE IN TELECOMMUNICATION AND
INFORMATION ENGINEERING, ELECTRICAL & ELECTRONICS ENGINEERING
AND
SECOND YEAR DEGREE IN BACHELOR OF SCIENCE IN CIVIL ENGINEERING
AND
THIRD YEAR DEGREE IN BACHELOR OF COMPUTER SCIENCE
HRD2103: GENERAL ECONOMICS
DATE: 1ST MARCH 2012 TIME: 2.00PM – 4.00PM
INSTRUCTIONS: Answer question ONE and any other TWO questions
Question one (Compulsory)
a) Distinguish between the following terms (20 marks)
i)Supply schedule and demand schedule
ii) Price floor and Price ceiling
iii) monopoly and monopolistic market
iv) Leakages and injections
v) Marginal propensity to tax and marginal propensity to invest
vi) Inferior goods and goods of ostentation
vii) Isoquant and indifference curve
viii) Induced investment and autonomous consumption
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ix) Depreciation and devaluation of currency
x) Monetary policy and fiscal policy.
b) The demand curve and supply curves of commodity x in the market are defined by the
following functions :
Where is the quantity demanded
is the quantity supplied and P is the price .
Determine the equilibrium price and quantity of X in the market. (5marks)
c) Highlight the functions of money ( 5marks)
Question Two
a) i) What is cross elasticity of Demand? (3marks)
ii) What is point elasticity of demand ( 3marks)
iii) The demand for a commodity is five units when the price is KShs.1000 per unit When the
price per unit fall to KShs.600 the demand rises to six units. Compute arc and point
elasticity. (6 marks)
b) Holding other things constant, explain the effects of simultaneous increase in price of a
substitute of good X and an increase in the cost of producing X if the market was in
equilibrium. (8marks)
Question Three
a) Write short note on the following
i) Absolute income hypothesis (4 marks)
ii) Life cycle income hypothesis (4marks)
b) Describe the reasons why people hold money as far as keynes is concerned. ( 9marks)
c) What is money (3marks)
Question Four
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a) With aid of relevant diagrams explain the distinction among the 3 types of production
curves (10 marks)
b) Use well labeled diagrams to explain short run equilibrium ,long run equilibrium and shut
down point of perfectly competitive market ( 5marks)
Question Five
a) Briefly explain your arguments for free trade . (8 marks)
b) Clearly distinguish between the following two concepts: Comparative advantage and
absolute advantage. (6 marks)
c) Highlight the usesof national income accounting. (6marks)
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Hrd2103: General Economics Question Paper

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