Bus0160;Introduction To Economics Question Paper
Bus0160;Introduction To Economics
Course:Diploma In Agriculture
Institution: Meru University Of Science And Technology question papers
Exam Year:2012
QUESTION ONE – (30 MARKS)
(a) The price of product X rises from Sh2.00 to Sh.3.00 and as a consequence the quantity demanded of product X fall from 60 to 40 units per week. Find the elasticity of demand. (5 Marks) (b) Differentiate between opportunity cost and utility of a product. (5 Marks) (c) Describe five national income concepts used in measuring economic welfare of a country. (5 Marks) (d) Describe the vicious cycle of poverty. (5 Marks) (e) Distinguish between internal and external economies of scale giving relevant examples in each case. (5 Marks) (f) Highlight five functions of money. (5 Marks)
QUESTION TWO – (15 MARKS)
(a) Using relevant illustrations distinguish between extension and contraction of demand, and rise and fall in demand. (10 Marks) (b) The income of a consumer is Ksh.1000 and his demand for sugar is 5 units. If his income increases from Sh1000 to sh1,200 and demand for sugar increases from 5 to 7 units find the income elasticity. (5 Marks)
QUESTION THREE – (15 MARKS)
Clearly describe the methods available for measuring the national income of a country. Discuss any problems involved in measuring it and any inadequacies in the results obtained. (15 Marks)
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QUESTION FOUR – (15 MARKS)
Describe the stages of economic growth as outlined by the economist, Rostow. (15 Marks)
QUESTION FIVE – (15 MARKS)
Explain the economies and diseconomies of large-scale production. (15 Marks)
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