Get premium membership and access revision papers, questions with answers as well as video lessons.

Buss 111: Micro Economics Question Paper

Buss 111: Micro Economics

Course:Business Administration

Institution: Kenya Methodist University question papers

Exam Year:2009

KENYA METHODIST UNIVERSITY

END OF THIRD TRIMESTER 2009 EXAMINATIONS

FACULTY : BUSINESS AND MANAGEMENT STUDIES
DEPARTMENT : BUSINESS ADMINISTRATION
COURSE CODE : BUSS 111
COURSE TITLE : MICRO ECONOMICS
TIME : 2 HOURS

INSTRUCTIONS
• Answer ANY THREE Questions

Question 1
a) State the Law of Marginal Utility (3 marks)
b) List THREE factors determining the elasticity of supply (4.5marks)
c) List THREE properties of indifference curves (4.5marks)
d) Differentiate between durable goods and non-durable goods (3marks)
e) List FIVE responses to price elasticity of demand ( 5marks)

Question 2
a) What is a production Possibility Frontier? (3marks)
b) Using a diagram, explain how economic growth and changes in resource availability will cause a shift in a Production Possibility Curve. (8marks)
c) Stat THREE circumstances in which Abnormal demand curve occur (3marks)
d) Distinguish between the substitution and income effects due to price change (5marks)

Question 3
a) Define the following terms (6marks)
(i) Economics
(ii) Opportunity cost
(iii) Price ceiling
b) List THREE fundamental principles that lead to the study of economics (4marks)
c) Using a diagram, explain how demand and supply determine the price of a commodity and the quantity demanded (4marks)
d) List TWO factors that influence supply and demand of a product (6marks)

Question 4
a) State THREE differences between micro economics and macroeconomics (6marks)
b) Define a Market economy and discuss two strengths and weaknesses of a market economy (8 marks)
c) Differentiate between Total Costs, Average Costs and Marginal Costs ( 6 marks)
Question 5
a) Define the term Production and discuss FOUR factors of production (8 marks)
b) If the price of sugar decreases from Ksh. 5 to Ksh. 4 and the quantity demanded increases from 60 kilograms to 70 kilograms; calculate the price elasticity caused by the price change (5 marks)
c) Differentiate between economies and diseconomies of Scale (4 marks)
d) Differentiate between Demand and Supply (3 marks)

Buss 111: Micro Economics Question Paper

More Question Papers

Popular Exams