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Hrd 2103: General Economics Question Paper

Hrd 2103: General Economics

Course:Bachelor Of Science In Electrical And Electronic Engineering

Institution: Dedan Kimathi University Of Technology question papers

Exam Year:2012

HRD 2103
Page 1 of 2
KIMATHI UNIVERSITY COLLEGE OF TECHNOLOGY UNIVERSITY EXAMINATION 2010/2011 FIRST YEAR SECOND SEMESTER EXAMINATION FOR THE DEGREE OF BACHELOR OF SCIENCE IN ELECTRICAL & ELECTRONICS ENGINEERING HRD 2103: GENERAL ECONOMICS DATE: 7TH DECEMBER 2010 TIME: 2.00- 4.00PM INSTRUCTIONS: Answer Question ONE and any other TWO Questions Question One (Compulsory) 30 Marks
a) Highlight the salient features of the production possibility frontier (5 Marks)
b) Using appropriate diagram(s) illustrate the market demand. (5marks)
c) Haco Industries has acquired a modern pen-making machine that is more efficient in the production of ball-pens. Using an appropriate diagram, explain the effect of this technological innovation. (5 Marks)
d) Illustrate the relationship between price elasticity and total expenditure and revenue in case of inelastic demand (5 Marks)
e) Outline the Characteristics of a Perfectly Competitive Industry in the Long-Run
(5 Marks)
f) Outline the Characteristics of a Perfectly Competitive Industry in the Long-Run
(5marks)
g) Highlight the reasons why mixed economic systems would be the preferred resource allocation mechanism of any society (5 Marks)
HRD 2103
Page 2 of 2
Question Two
a) List and explain the factors that influence demand of any good or service (5 Marks)
b) Using well labeled diagrams, differentiate between change in supply and change in
quantity supplied (6 Marks)
c) With the aide of appropriate diagrams, distinguish between price floors and price
ceilings (9 Marks)
Question Three
a) Giving appropriate examples, discuss the main causes of monopoly power of a firm
(6 Marks)
b) A monopolist can practice price discrimination in different markets. Demand in the
domestic and foreign markets is given by:
1 1 Q ?1200 ?10P (Domestic Market) while 2 2 Q ? 800 ?10P
His total cost is given by 0.05 1000 2 TC ? Q ? . At price, it is assumed that the
foreign demand is more elastic than domestic demand.
a) Calculate marginal revenue functions in each market (3 Markets)
b) Using profit maximization conditions, calculate:
i. Price and Quantity sold in the domestic market (4marks)
ii. Quantity Sold in the foreign Market (2 Marks)
iii. The monopolist’s profit in both markets and his total profit (4 Marks)
iv. The monopolist’s overall profits (1 Mark)
Question Four
a) Critically examine the benefits of economic integration? (8marks)
b) Explain the policy measures that the central bank of Kenya employs to manage the
money market. (12marks)
Question Five
a) Giving appropriate examples, critically examine economies and diseconomies of
scale. (20marks)

Hrd 2103: General Economics Question Paper

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