KASNEB Economics - Question 1a

Outline four assumptions underlying consumer equilibrium. ... [Click to view full question and step-by-step solution]

KASNEB Economics - Question 1b

With the aid of a diagram, explain the production possibility frontier. ... [Click to view full question and step-by-step solution]

KASNEB Economics - Question 2b

Highlight five disadvantages of the monopoly market structure. ... [Click to view full question and step-by-step solution]

KASNEB Economics - Question 2c

A certain market for commodity x contains 1,000 identical consumers, each having a demand function given as:Qdx = 12- 2px.The market contains 100 identic... [Click to view full question and step-by-step solution]

KASNEB Economics - Question 3c

Discuss five'causes of the U-shaped long-run average cost curves of a firm. ... [Click to view full question and step-by-step solution]

KASNEB Economics - Question 4a

Enumerate six barriers to occupational mobility of labour. ... [Click to view full question and step-by-step solution]

KASNEB Economics - Question 4b

Illustrate the close down price of a firm operating under perfect competition. ... [Click to view full question and step-by-step solution]

KASNEB Economics - Question 4c

Outline eight roles of commercial banks in boosting the economic development of a country. ... [Click to view full question and step-by-step solution]

KASNEB Economics - Question 5a

Explain five factors that determine the macroeconomic level of consumption in an economy. ... [Click to view full question and step-by-step solution]

KASNEB Economics - Question 6a

Explain the term 'balance of payments' as used in international trade. ... [Click to view full question and step-by-step solution]

KASNEB Economics - Question 6c

Examine six roles of non-banking financial institutions in an economy. ... [Click to view full question and step-by-step solution]

KASNEB Economics - Question 6d

Describe three ways in which a government could use fiscal policy to stimulate economic growth. ... [Click to view full question and step-by-step solution]

KASNEB Economics - Question 7a

Summarise five causes of inflation in developing countries. ... [Click to view full question and step-by-step solution]

KASNEB Economics - Question 7b

Highlight eight arguments in favour of international trade restrictions in a country. ... [Click to view full question and step-by-step solution]

KASNEB Economics - Question 7c

State seven economic goals of developing countries. ... [Click to view full question and step-by-step solution]

May 2016

1a

Demand, supply and determination of equilibrium

Outline four assumptions underlying consumer equilibrium.

1b

Introduction to economics

With the aid of a diagram, explain the production possibility frontier.

1c

Demand, supply and determination of equilibrium

Summarise five ways through which the government could influence the allocation of resources in a free market economy.

1d

Demand, supply and determination of equilibrium

Explain how the concept of elasticity of demand guides economic decision making in the following areas:

(i) Government tax policy on household consumption.

(ii) Devaluation policy.

(iii) Price discrimination by a monopolist.

2a

Inflation and unemployment

Differentiate between the following sets of terms as used in economics:

(i) "Structural unemployment" and "keynesian unemployment".

(ii) "Narrow money" and "broad money".

2b

Demand, supply and determination of equilibrium

Highlight five disadvantages of the monopoly market structure.

2c

Demand, supply and determination of equilibrium

A certain market for commodity x contains 1,000 identical consumers, each having a demand function given as:

Qdx = 12- 2px.

The market contains 100 identical producers of commodity x, each with a supply function given by Qsx = 20р..

Qdx is the quantity demanded of x.
Qsx is the quantity supplied of x.
Px is the price of x.

Required:

(i) The market demand and market supply functions of commodity х.

(ii) Using indifference curve analysis, illustrate the effect of a government subsidy on commodity x to low income

earners.

3a

Economic growth, economic development and economic planning

Discuss five policy measures that developing countries could adopt to reduce regional imbalances.

3b

Demand, supply and determination of equilibrium

Using a well labelled diagram, evaluate the effect of simultaneous increase in demand and decrease in supply on equilibrium price and quantity of a commodity.

3c

Demand, supply and determination of equilibrium

Discuss five'causes of the U-shaped long-run average cost curves of a firm.

4a

Demand, supply and determination of equilibrium

Enumerate six barriers to occupational mobility of labour.

4b

Demand, supply and determination of equilibrium

Illustrate the close down price of a firm operating under perfect competition.

4c

Money and banking

Outline eight roles of commercial banks in boosting the economic development of a country.

5a

National income

Explain five factors that determine the macroeconomic level of consumption in an economy.

5b

National income

The following data relate to the commodity and money markets of a hypothetical closed economy without government intervention, in millions of shillings:

C = 204 +0.7Y
1 = 300 - 100r
MDT = 0.25Y
MDS = 248-200r
Ms = 600

Where:

C is the consumption function.
Y is the national income.
I is the investments function.
r is the rate of interest.
MDT is the precautionary and transactionary demand for money.
Mps is the speculative demand for money.
Ms is the money supply.

Required:

(i) Equilibrium level of interest rate.

(ii) Equilibrium level of national income.

6a

National income

Explain the term "balance of payments" as used in international trade.

6b

Demand, supply and determination of equilibrium

With the aid of an appropriate diagram, explain the condition under which a firm operating under oligopoly market structure would make losses in the short-run.

6c

Money and banking

Examine six roles of non-banking financial institutions in an economy.

6d

National income

Describe three ways in which a government could use fiscal policy to stimulate economic growth.

7a

Inflation and unemployment

Summarise five causes of inflation in developing countries.

7b

National income

Highlight eight arguments in favour of international trade restrictions in a country.

7c

Economic growth, economic development and economic planning

State seven economic goals of developing countries.

May 2016

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