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Introduction To Economics(Dpba 019) I Question Paper

Introduction To Economics(Dpba 019) I

Course:Business Administration

Institution: Kenya Methodist University question papers

Exam Year:2011

TIME : 2 HOURS
INSTRUCTIONS Answer ALL Questions from Section A and TWO Questions in Section B

SECTION A
Question 1
What are some of the features found in a mixed economy? Discuss (10marks)

Question 2
State the law of demand. What are the exceptions to the law of demand? Explain. (10marks)

Question 3
Illustrate the uses of National income statistics. (10marks)

SECTION B
Question 4
a) Using diagrams show the difference between a movement along a demand curve and a shift in demand. (10marks)
b) What factors influence demand? (10marks)

Question 5
a) Define the term inflation. What causes inflation in an economy? (10marks)
b) Explain the role of the Central Bank of Kenya in controlling inflation. (10marks)

Question 6
a) Briefly discuss the features of a perfectly competitive market. (10marks)
b) Using a diagram, illustrate the short run price and output for the competitive industry and firm. (10marks)

Question 7
Write short notes on:
a) Excess supply (5marks)
b) Factors of production (5marks)
c) Price discrimination (5marks)
d) Types of unemployment (5marks)

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