Loading...

CPA Economics – August 2025 Past Paper & Answers

Unit: Economics

20 Questions

Download Complete Period

Get all questions and answers for "August 2025" in a single PDF file

Join the community! 550+ students upgraded in the last 24 hours. Limited Discount Seats Available

Questions

Download CPA Economics August 2025 past paper with detailed answers and marking scheme. This paper is based on KASNEB examination standards and is ideal for revision and exam preparation.

Access the full paper online, download the PDF, or study offline. Each question includes step-by-step solutions to help you understand key concepts in Economics.

1
Introduction to economics Inflation and unemployment Money and banking
​​(a) Explain FOUR steps of the scientific method as applied in economic analysis.
 
(b) Explain SIX strategies that the government could implement to counter effects of climate change on agriculture.    
 
(c) (i)  Explain the term “central bank” of a country. 
 
(ii) State FOUR secondary functions of a central bank. 
 
(d) Highlight FOUR limitations of production possibility frontier curve.     
Want to join the discussion?

Log in to post comments and interact with tutors.

Login to Comment
2
Demand, supply and determination of equilibrium
​ ​​(a) Highlight FOUR causes of demand-pull inflation. 
 
(b) Outline FOUR determinants of elasticity of supply of labour.
 
(c) Discuss SIX roles of government in an economy. 
 
(d) Using a well labelled diagram, illustrate the price ceiling for a good or service. 
Want to join the discussion?

Log in to post comments and interact with tutors.

Login to Comment
3a
Demand, supply and determination of equilibrium
​​The demand and supply functions of a certain product are given as follows: 
Qd = 110 – 2P 
Qs = – 40 + 3P 
 
The government imposes a tax of Sh.5 per unit. 
  
Required: 
Determine: 
 
(i) Equilibrium price after tax.
 
(ii) Equilibrium quantity after tax. 
Want to join the discussion?

Log in to post comments and interact with tutors.

Login to Comment
3b
Demand, supply and determination of equilibrium
​​Explain THREE applications of the concept of cross elasticity of demand.
Want to join the discussion?

Log in to post comments and interact with tutors.

Login to Comment
3c
Economic growth, economic development and economic planning
​​Highlight FOUR ways a country can increase foreign reserves.
Want to join the discussion?

Log in to post comments and interact with tutors.

Login to Comment
3d
Inflation and unemployment
​​Explain FOUR causes of structural unemployment.
Want to join the discussion?

Log in to post comments and interact with tutors.

Login to Comment
4a
National income
​ ​ ​​The following information represents the national income statistics of a hypothetical economy in billions of shillings:

Gross national product at market price9,630
Depreciation allowance215
Net factor income from abroad-130
Indirect taxes48
Subsidies19

The population for this economy is 637 million. 

Required: 
(i) Net national product (NNP) at factor price. 

(ii) Net domestic product (NDP) at market price. 

(iii) Per capita income.  
Want to join the discussion?

Log in to post comments and interact with tutors.

Login to Comment
4b
Demand, supply and determination of equilibrium
​ ​​Using indifference curve analysis, explain the derivation of the demand curve for a normal good X.
Want to join the discussion?

Log in to post comments and interact with tutors.

Login to Comment
4c
Economic growth, economic development and economic planning
​​Examine FIVE merits of adopting import-substitution strategy in developing countries.
Want to join the discussion?

Log in to post comments and interact with tutors.

Login to Comment
5a
Demand, supply and determination of equilibrium
​​Outline FIVE factors that influence production function
Want to join the discussion?

Log in to post comments and interact with tutors.

Login to Comment
5b
Introduction to economics
​​Describe FOUR characteristics of human wants.
Want to join the discussion?

Log in to post comments and interact with tutors.

Login to Comment
5c
Demand, supply and determination of equilibrium
​ ​​(i) With the aid of a diagram, illustrate the cobweb model. 

(ii) Explain THREE limitations of the cobweb model.
Want to join the discussion?

Log in to post comments and interact with tutors.

Login to Comment
5d
Inflation and unemployment
​​The rate of inflation in country X dropped from 9.6% in the month of January 2025 to 2.8% in the month of March 2025.  
 
Required: 
Assess SIX reasons why the standard of living of an average citizen in country X might not have changed over the past one year.  
Want to join the discussion?

Log in to post comments and interact with tutors.

Login to Comment
6a
Inflation and unemployment
​ ​​With the aid of a diagram, explain the marginal efficiency of capital.
Want to join the discussion?

Log in to post comments and interact with tutors.

Login to Comment
6b
National income
​​Outline SIX implications of a deflationary gap in an economy.
Want to join the discussion?

Log in to post comments and interact with tutors.

Login to Comment
6c
Money and banking
​​Explain FOUR criticisms of the liquidity preference theory of money.
Want to join the discussion?

Log in to post comments and interact with tutors.

Login to Comment
7a
Demand, supply and determination of equilibrium
​​Explain SIX sources of monopoly power.
Want to join the discussion?

Log in to post comments and interact with tutors.

Login to Comment
7b
Money and banking
​​State FOUR limitations of monetary policies in developing countries.
Want to join the discussion?

Log in to post comments and interact with tutors.

Login to Comment
7c
Inflation and unemployment
​​Identify FOUR types of unemployment.
Want to join the discussion?

Log in to post comments and interact with tutors.

Login to Comment
7d
National income
​​Describe the THREE methods of measuring national income.
Want to join the discussion?

Log in to post comments and interact with tutors.

Login to Comment
Success!

Comment posted! We'll give you feedback soon.