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Hrd2103: General Economics Question Paper

Hrd2103: General Economics

Course:Bachelor Of Science In Electrical & Electronics Engineering

Institution: Dedan Kimathi University Of Technology question papers

Exam Year:2012

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KIMATHI UNIVERSITY COLLEGE OF TECHNOLOGY UNIVERSITY EXAMINATION 2010/2011 THIRD YEAR FIRST SEMESTER EXAMINATION FOR THE DEGREE IN BACHELOR OF SCIENCE IN COMPUTER SCIENCE HRD2103: GENERAL ECONOMICS DATE: 14TH APRIL 2011 TIME: 11.00AM – 1.00PM INSTRUCTIONS: Answer question ONE and any other TWO questions Question one (Compulsory)
a) Distinguish between the following terms
i) Supply schedule and demand schedule
ii) Cardinal and Ordinal utility
iii) Oligopoly and monopolistic market
iv) Leakages and injections
v) Marginal propensity to consume and marginal propensity to invest
vi) Giffen goods and goods of ostentation
vii) Isoquant and indifference curve
viii) Induced consumption and autonomous consumption
ix) Depreciation and devaluation
x) Monetary policy and fiscal policy.
(20 marks)
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b) The demand curve and supply curves of commodity x in the market are defined by the following functions :
Where is the quantity demanded
is the quantity supplied and P is the price . Determine the equilibrium price and quantity of X in the market. (5marks)
c) Highlight the role of Central Bank in your country ( 5marks)
Question Two a)i) What is arc elasticity of Demand? (3marks) ii) What is point elasticity of demand ( 3marks) iii) The demand for a commodity is five units when the price is KShs.1000 per unit When the price per unit fall to KShs.600 the demand rises to six units. Compute arc and point elasticity. (6 marks) b) Holding other things constant, explain the effects of simultaneous increase in price of a substitute of good X and an increase in the cost of producing X if the market was in equilibrium. (8marks) Question Three a) Write short note on the following i) Absolute income hypothesis (4 marks) ii) Life cycle income hypothesis (4marks) b) Briefly explain the three motives why people demand hold money under Keynesian approach. ( 9marks)
c) What is credit creation. (3marks)
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Question Four
a) With aid of relevant diagrams explain the distinction among the 3 types of production curves (10 marks)
b) Use well labeled diagrams to explain short run equilibrium ,long run equilibrium and shut down point of perfectly competitive market ( 10 marks)
Question Five
a) Briefly explain your arguments against free trade . (8 marks)
b) Clearly distinguish between the following two concepts: Comparative advantage and absolute advantage. (6 marks)
c) Highlight the importance of national income accounting. (6marks)

Hrd2103: General Economics Question Paper

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