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What are the main problems associated with National Income Accounting in developing countries?
Date posted:
February 7, 2019
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The Economic Advisory Department of Exam land has estimated that its country‟s marginal propensity to consume equals 0.6, investment in millions of shillings equals 2,000, Government spending 8,000, autonomous consumption 10,000 and net exports 1,000.
If the currency of Exam land depreciated, what would likely happen to the National Income? Why?
Date posted:
February 7, 2019
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The Economic Advisory Department of Exam land has estimated that its country‟s marginal propensity to consume equals 0.6, investment in millions of shillings equals 2,000, Government spending 8,000, autonomous consumption 10,000 and net exports 1,000
Calculate the level of equilibrium of National Income for this economy
Date posted:
February 7, 2019
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Using separate diagrams, illustrate and explain the substitution and income effects of a price fall for both inferior and giffen goods
Date posted:
February 7, 2019
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Differentiate between inferior and giffen goods.
Date posted:
February 7, 2019
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Assume a consumer spends all his income in the purchase of two goods X and Y whose prices are Sh. 30 and Sh. 20 per unit respectively. The consumer‟s monthly income is Sh. 12,000. He is satisfied with various combinations of X and Y but prefers to spend his income in equal proportions on the two commodities, that is, at a ratio of 1:1 to maintain his level of satisfaction.
What is the effect of an increase in the consumers income from Sh. 12,000 to sh. 24,000 per
month?
Date posted:
February 7, 2019
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Assume a consumer spends all his income in the purchase of two goods X and Y whose prices are Sh. 30 and Sh. 20 per unit respectively. The consumer‟s monthly income is Sh. 12,000. He is satisfied with various combinations of X and Y but prefers to spend his income in equal proportions on the two commodities, that is, at a ratio of 1:1 to maintain his level of satisfaction.
Using clearly labeled diagram; Show the relevant budget line and indifference curves indicating the equilibrium position of
the consumer.
Date posted:
February 7, 2019
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If money supply in a given economy equals 500 while the velocity and price equal 8 and 2 respectively, determine the level of real and nominal output.
Date posted:
February 7, 2019
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Suppose in a two commodity market model the supply and demand functions are given as:
Using the functions provided, calculate the equilibrium values of prices and quantities
Date posted:
February 7, 2019
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Suppose in a two commodity market model the supply and demand functions are given as:
Explain the relationship between the two commodities giving valid economic reasons
Date posted:
February 7, 2019
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PQR Ltd is the sole supplier of electricity in your country. It supplies electricity to two separate consumers, namely (i) industrial and commercial users and (ii) domestic users. The company is able to charge different prices or tariffs to these two consumers. Suppose the PQR Ltd‟s total cost of producing electricity is given by the following cost function:
Determine The price elasticities of demand for the two markets (at equilibrium price and quantity).
Date posted:
February 7, 2019
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PQR Ltd is the sole supplier of electricity in your country. It supplies electricity to two separate consumers, namely (i) industrial and commercial users and (ii) domestic users. The company is able to charge different prices or tariffs to these two consumers. Suppose the PQR Ltd‟s total cost of producing electricity is given by the following cost function:
Determine At what price will the outputs in each market be sold?
Date posted:
February 7, 2019
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PQR Ltd is the sole supplier of electricity in your country. It supplies electricity to two separate consumers, namely (i) industrial and commercial users and (ii) domestic users. The company is able to charge different prices or tariffs to these two consumers. Suppose the PQR Ltd‟s total cost of producing electricity is given by the following cost function:
Determine The output produced and how much of this output will be sold in each market if PQR Ltd is to maximize profits?
Date posted:
February 7, 2019
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What economic advantages are created by the existence of:
(i) Primary markets.
(ii) Secondary markets
(iii) Portfolio management firms
Date posted:
February 7, 2019
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Bring out the salient features of a monopolistic competition market model
Date posted:
February 7, 2019
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Explain how the Capital Authority can ensure:
(i) faster growth and development of the Nairobi Stock Exchange or Stock Exchange in your country.
(ii) development of other stock exchanges in Kenya or in your country
Date posted:
February 7, 2019
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Using a well labeled diagram, show and explain why in a perfectly competitive market structure, when the marginal revenue equals marginal cost, this is only a necessary but not sufficient condition for profit maximization.
Date posted:
February 7, 2019
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Under what circumstances might it be possible and profitable for a monopolist to charge different prices for his product in different markets?
Date posted:
February 7, 2019
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Mwinzi, a holder of shares in Hewa Airways Company Limited deposited his share certificate with a broker, Otieno. Otieno forged Mwinzi's signature on the share certificate and transferred the shares to Kuria. When the share certificate and the transfer document were presented to the company for registration, the secretary wrote to Mwinzi advising him of the transfer. Mwinzi did not reply to this letter and Kuria was registered as the new shareholder. Kuria then transferred the shares to Wafula who was registered as the shareholder and a new certificate was issued.
Explain the effect of the forgery.
Date posted:
February 7, 2019
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The table below represents estimated national income values for hypothetical economy X in millions of shillings:
Gross National Product (at market prices) = 389.2
Depreciation allowance = 47.0
Indirect taxes less subsidies = 42.4
Business taxes = 11.4
Personal income taxes = 66.3
Government transfers = 59.3
Retained profits = 13.0
Based on the information provided, calculate the Net National Product at market price, the Net National Income (at factor cost), Personal Income and the disposable income for this economy
Date posted:
February 7, 2019
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Explain to a new shareholder of a central depository account the circumstances in which a central depository securities account may be suspended.
Date posted:
February 7, 2019
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Distinguish between Gross National and Gross Domestic products and account for the lower values of the former in developing economies.
Date posted:
February 7, 2019
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Outline the reasons that may lead to suspension of promoters by a company.
Date posted:
February 7, 2019
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Explain the preliminaries incidental to promotion of a company.
Date posted:
February 7, 2019
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Suggest economic measures to curb inflation
Date posted:
February 7, 2019
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What are the determinants of demand for labor?
Date posted:
February 7, 2019
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By use of diagrams, illustrate and explain the resultant changes on the equilibrium price and quantity from a simultaneous fall in price of a substitute and an increase in the cost of raw materials for a specific commodity.
Date posted:
February 7, 2019
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A monopolistic firm with a linear demand curve finds that it can sell two units at Sh.12 or twelve units at Sh.2. Its fixed cost is Sh. 20 and its marginal cost is constant at Sh. 3 per unit. Derive and plot the following:
Marginal cost, average total cost, marginal revenue and demand curves for this firm.
Date posted:
February 7, 2019
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Explain the effect of the failure by the company to register a charge of a debenture.
Date posted:
February 7, 2019
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Explain the circumstances when a dividend may become payable and enforceable as a debt against the company.
Date posted:
February 7, 2019