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Introduction To Economics Question Paper

Introduction To Economics

Course:Bachelor Of Science In Hospitality And Tourism Management

Institution: Kenyatta University question papers

Exam Year:2009

KENYATTA UNIVERSITY
UNIVERSITY EXAMINATIONS 2008/2009
SECOND SEMESTER EXAMINATIONS FOR THE DEGREE OF BACHELOR
OF SCIENCE IN HOTEL AND TOURISM MANAGEMENT

HTM 208:
INTRODUCTION TO ECONOMICS

DATE: WEDNESDAY 19TH AUGUST 2009 TIME: 11.00 A.M. – 1.00 P.M.

INSTRUCTIONS
SECTION 1
• Answer ALL Questions

1.
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
Margin
fixed cost
variable cost cost
fixed
variable
total cost al costs
cost
costs
0
5 0
1
5 4
2
5 7.5
3
5 10.8
4
5 13.8
5
5 17
6
5 20.5
7
5 24.3
8
5 28..6
9
5 33.5
10
5 39
2.
a)
Define the following:
i)
Quantity demanded. (3 marks)
ii)
Quantity supplied (3 marks)
iii)
Price Elasticity of demand (3 marks)
b)
i)
List the factors that influence market demand. (3 marks)
ii)
List the main factors that influence individual demand. (3 marks)
c)
i)
What are Gitten goods. (2 marks)
ii)
What is price elasticity of supply? (3 marks)

SECTION TWO:
• Answer One question
3.
a)
What is market supply. (3 marks)
b)
Explain the bfollowing Demand and Supply functions.

Dx = f(Px, O Pg Pf ? O) (6 marks)
c)
Sx = f(Px, Pr , . Pf T EZ) (6 marks)
4.
a)
Explain the distinct time periods in production. (6 marks)
b)
Name and explain the three stages of production. (9 marks)