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Introduction To Economics Question Paper

Introduction To Economics

Course:Bachelor Of Science In Tourism Management

Institution: Kenyatta University question papers

Exam Year:2009

KENYATTA UNIVERSITY
UNIVERSITY EXAMINATIONS 2008/2009
SECOND SEMESTER EXAMINATION FOR THE DEGREE OF BACHELOR
OF SCIENCE (TOURISM MANAGEMENT)

HTM 208:
INTRODUCTION TO ECONOMICS

DATE: Monday, 14th September, 2009

TIME: 8.00 a.m. – 10.00 a.m.
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INSTRUCTIONS:
1. Answer
ALL questions.
2.
All calculations must be shown on the answer sheet

1.
a)
What is economics (2 marks)
b)
Name and explain three elements of economic activity (9 marks)
c)
What do you understand by the giffen and Veblen goods? (6 marks)
2.
The table below shows the cost of production of bread for Hotel ABC in the short run. Calculate and fill the table. (25 marks)

Bread Total Total
Total Average Average Average Marginal
Fixed Variable Cost
Fixed
Variable Total
costs
Cost
cost
cost
costs
cost
0 10
0

1 10
4

2 10
7.5

3 10
10.8

4 10
13.8

5 10
17

6 10
20.5

7 10
24.3

8 10
28.6

9 10
33.5

10 10 39
3.
Define the following
a)
Price Elasticity of demand (2 marks)
b)
Income elasticity of demand (2 marks)
c)
Cross Elasticity of Demand (2 marks)
d)
List the main factors that influence individual supply. (4 marks)

Section Two
Answer ONE question.
4.
A market consists of three men; Kawira, Martin and Ochiengs whose individual demand equations are as follows:-
Kawira; P = 35 – 0,5Q
Martin: P = 50 – 0.25Q
Ochieng: P = 40 – 2Q
Where p represents price and Q represents quantity demanded.
a)
Calculate the market demand equation (6 marks)
b)
Calculate the quantity demanded by each if the price of the commodity is 40 (6 marks)
c)
What will be the market demand for the same commodity at that price (6 marks)

Introduction To Economics Question Paper

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