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General Economics Question Paper

General Economics

Course:Bachelor Of Science In Information Technology

Institution: Masinde Muliro University Of Science And Technology question papers

Exam Year:2009

EXAMINATION FOR THE DEGREE OF BACHELOR OF
SCIENCE IN BUSINESS MANAGEMENT
BIT 1308: GENERAL ECONOMICS
DATE: DECEMBER 2009 TIME: 2 HOURS
INSTRUCTIONS: Answer question ONE and any other TWO questions
QUESTION ONE
a) Argue for and against economic integration among countries (8 Marks)
b) Write brief notes on the following
i. Production possibility curve ( 2 Marks)
ii. Market supply ( 2 Marks)
iii. Command economic system ( 2 Marks)
iv. Fiscal policy ( 2 Marks)
v. Economies of scale ( 2 Marks)
c) Inflation has been a key economic problem to developing countries. Highlight monetary and fiscal policies that can be adopted to control the problem. (6 Marks)
d) Explain factors that cause shifts in the supply curve ( 6 Marks)
QUESTION TWO
a) Highlight the major causes of unemployment in developing countries and suggest measures that can be adopted to alleviate the problem (10 Marks)
b) Explain the causes of balance of payment deficits and the measures that can be adopted to control the deficit (10 Marks)
QUESTION THREE
a) Use supply and demand analysis to explain the effect of each of the following on equilibrium price and quantity traded of tea. Consider each event separately.
i. An increase in supply of tea (4 Marks)
ii. An increased in supply of coffee (6 Marks)
iii. Publication of a report linking consumption of tea with good health (4 Marks)
b) Highlight factors determining demand for factors of production (6 Marks)
QUESTION FOUR
a) The following table represents a production function of a hypothetical firm in the short-run
Output (units) Total cost (Sh)
0 150
10 210
20 260
30 410
40 455
50 560
60 680
70 750
80 920
i. Define marginal cost and give an estimate of the marginal cost of producing the 20th unit of
output ( 4 Marks)
ii. Find the average fixed cost and average variable cost when the firm produces 50 units of output. (4 Marks)
b) Highlight factors that limit consumer sovereignty (8 Marks)
c) Write brief notes on
i. Derived demand (2 Marks)
ii. Joint demand (2 Marks)
QUESTION FIVE
a) Highlight the main functions played by IMF (8 Marks)
b) Explain the sources of monopoly power (6 Marks)
c) Explain the characteristics of a perfect market structure (6 Marks)

General Economics Question Paper

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