Diploma 1 In Business Administration Economics Past Paper Question Paper
Diploma 1 In Business Administration Economics Past Paper
Course:Diploma In Business Administration
Institution: Machakos University question papers
Exam Year:2009
Time: 2 1/2 Hours
Attempt any five questions
1 (a) How does price mechanism solve the problem of allocating scarce resources to alternative uses in a free market economy? (8 Marks)
(b) What is meant by optimum size of a firm
What economic factors promote or limit the expansion of a firm. (12 Marks)
2.Explain the different concepts of elasticity of demand.
What is the practical importance of the measure of elasticity of demand and what major factors determine such elasticity. (20 Marks)
3.Distinguish between the law of diminishing returns to scale and economies of scale with the help of relevant products curves, illustrate and explain the three stages in the operations of the law of diminishing returns. (20 Marks)
4. Discuss the reasons for the concentration of industries in the urban centres of Kenya. Why would you recommend policies for promoting a more favourable geographical distribution of industries in Kenya. (20 Marks)
5.Discuss the meaning of mobility of factors of production.
To what extent are these factors mobile and what's the significance of mobility in production. (20 Marks)
6. Why's unemployment an issue of concern in development planning.
What are the main causes of this problem? Explain the measures that may be taken in a developing country to reduce the consequences of the problem. (20 Marks)
7 (a) Distinguish between supply, demand and equilibrium price. (5 Marks)
(b) Explain the meaning of elasticity of supply and list the factors that determine the supply of a good in the market. (10 Marks)
7 (a) The table below shows the demand and supply supply schedules for a product.
Price(sh per kg) Demand (kg) Supply(kg)
10 100 20
20 85 36
30 70 53
40 55 70
50 40 87
60 25 103
70 10 120
Draw the demand and supply curves and derive the equilibrium price and quantity. (5 Marks)
8 (a) "A perfect market does not exist" Discuss this contention. (10 Marks)
(b) Write short notes on the following.
(i) Monopolistic competition
(ii) Ordinary monopoly
(iii) Oligopoly
(iv) Monophsony
(v) composite supply (10 Marks)
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