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S6 Economics

S6 Mock Economics Paper 1 July/August 2017

SECTION A : (20marks)

Answer ALL parts in this question

  1. (a) (i) Distinguish between price elasticity of demand and income elasticity of demand. (02mks)

ii) Mention two factors that influence price elasticity of demand. (02mks)

b) (i) Distinguish between labour mobility and efficiency of labour.(02mks)

ii) State any two factors which influence the efficiency of labour in an economy.(02mks)

c) (i) What is meant by a development goal.(01mk)

ii) Mention any three development goals in an economy.(03mks)

d) (i) Distinguish between trade creation and trade diversion.(02mks)

ii) State any two effects of trade diversion. (02mks)

e) (i) State Irving fishers’ equation of exchange.(01mk)

ii) How is the value of money determined in fishers’ equation of exchange?

 

 

SECTION B (80marks)

Answer any four questions from this section

  1. (a) Explain the role of price mechanism in the allocation of resources in an economy. (10mks)

b) Discuss the implications of relying on price mechanism in the allocation of resources in an economy.(10mks)

  1. (a) How does a firm in a monopolistic competitive market determine output, price and profits in the long run?  (04mks)

b) Explain the merits and demerits of monopolistic competition.(16mks)

  1. (a)  Differentiate between gross domestic product and Net national product. (04mks)

b) Explain the factors that influence the level of National Income in an economy.(16mks)

  1. (a) Differentiate between capital saving techniques of production and labour saving techniques of production. (04mks)

     b) “Developing countries should adopt capital saving techniques of production if they are to achieve faster rates of economic growth”.

  1. (a) Explain the Malthusian population theory.                             

      b) To what extent is this theory relevant in developing countries?

  1. (a) What is meant by the term “collective bargaining”.  (04mks)

      b) When are employees justified to demand for wages increase?(16mks)

 

END

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