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Ben 2111: Introduction To Micro Economics Question Paper

Ben 2111: Introduction To Micro Economics

Course:Diploma In Business Administration

Institution: Jaramogi Oginga Odinga University Of Science And Technology question papers

Exam Year:2013

JARAMOGI OGINGA ODINGA UNIVERSITY OF SCIENCE AND TECHNOLOGY SCHOOL OF BUSINESS AND ECONOMICS
UNIVERSITY EXAMINATION FOR THE DIPLOMA IN BUSINESS ADMINISTRATION
1ST YEAR 1ST SEMESTER 2013/2014 ACADEMIC YEAR

MAIN
COURSE CODE:BEN 2111
COURSE TITLE: INTRODUCTION TO MICRO ECONOMICS
EXAM VENUE: STREAM: DIP. BA
DATE: 19/12/2013 EXAM SESSION: 2.00-3.30PM
TIME: 1.30 HOURS

Instructions:
1. Answer question 1 (Compulsory and ANY other 2 questions

2. Candidates are advised not to write on the question paper.
3. Candidates must hand in their answer booklets to the invigilator while in the examination room.

QUESTION ONE
a) Clearly explain the distinction between supply, demand and equilibrium price. (6 marks)
b) State and briefly explain any four main factors that may cause a fall in the supply of a good in the market. (8 marks)
c) If there is an increase in demand for a good, discuss in what circumstances the price may be expected:
(i) to rise
(ii) to remain constant
(iii) to fall (9 marks)

c) The table below shows the demand and supply schedules for a product.

Price (Sh. Per Kg.) Demand (Kg) Supply (Kg.)
10 100 20
20 85 36
30 70 53
40 55 70
50 40 87
60 25 103
70 10 120

Required:
Plot the demand and supply curves and determine the equilibrium price and quantity. (7 marks)
(Total: 30 marks)
QUESTION TWO
(a) Discuss the main factors of production (4 marks)
(b) Define the term ‘production function’ (3 marks)
(c) What determines the supply and demand of the factors of production that you have identified in (a) above? (8 marks)
(Total: 15 marks)
QUESTION THREE
a) Scarcity leads to choice, discuss this assertion giving relevant examples (5 marks)
b) i). Give the meaning of the term ‘Price Control’ (2 marks)
ii). Explain the circumstances under which price control is considered necessary. (8 marks)
(Total: 15marks)

QUESTION FOUR
a) Using relevant examples distinguish between a firm and an industry (5marks)
b) What factors determine the location of industries? Give examples where such factors have influenced the location of industries in Kenya. (10marks)
(Total: 15 marks)
QUESTION FIVE
What is meant by Joint Stock Company? Distinguish between Joint Stock Company and partnership in respect of the following:
i) Membership
ii) Liability
iii) Legal formalities (Total: 15 marks)

Ben 2111: Introduction To Micro Economics Question Paper

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