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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:2013

QUESTION ONE (30 MARKS)
a. Define the following terms and state an example where possible (10 Marks) i. Gross domestic product ii. Transfer payments iii. Capital goods iv. Monetary policy b. Describe the relationship between saving and investment (5 Marks) c. Using illustration describe the vicious circle of poverty (5 Marks) d. If there is an increase in demand for a good, discuss in what circumstances the price may be expected to: i. Rise ii. Remain constant iii. Fall (6 Marks) e. What is the difference between price elasticity of demand and income elasticity of demand for a product? (4 Marks)
QUESTION TWO (15 MARKS)
A county is said to be underdeveloped if the economic development of that country is in progress or incomplete. In light of this statement describe the problems associated with underdeveloped countries and suggest the possible remedies (15 Marks)
QUESTION THREE (15 MARKS)
Using relevant graphical illustrations explain the following costs (15 Marks)
i. Total costs
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ii. Variable costs iii. Fixed costs iv. Marginal costs v. Average costs
QUESTION FOUR (15 MARKS)
What are the determinants of national income? Discuss their relative importance (15 Marks)
QUESTION FIVE (15 MARKS)
Write short notes on:
i. Credit controlling tools used by the central bank (5 Marks) ii. Functions of commercial banks (5 Marks) iii. Functions of money (5 Marks)

Bus0160;Introduction To Economics Question Paper

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