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    Econ 1

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    Ochola Charles
    This document contains instructions for a 2 hour economics exam consisting of 4 questions. Section A contains 1 compulsory question with subsections on topics like laissez-faire economy, price control methods, transfer earnings, and needs vs wants. Section B contains 3 optional questions focusing on capital formation vs depreciation, measuring national income, and direct vs indirect production. Students are directed to attempt the compulsory Section A question and any 3 questions from Section B.

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    Econ 1

    Uploaded by

    Ochola Charles
    34 views1 page
    This document contains instructions for a 2 hour economics exam consisting of 4 questions. Section A contains 1 compulsory question with subsections on topics like laissez-faire economy, price control methods, transfer earnings, and needs vs wants. Section B contains 3 optional questions focusing on capital formation vs depreciation, measuring national income, and direct vs indirect production. Students are directed to attempt the compulsory Section A question and any 3 questions from Section B.

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    Paper 1

    Original Title

    Econ_1

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    This document contains instructions for a 2 hour economics exam consisting of 4 questions. Section A contains 1 compulsory question with subsections on topics like laissez-faire economy, price control methods, transfer earnings, and needs vs wants. Section B contains 3 optional questions focusing on capital formation vs depreciation, measuring national income, and direct vs indirect production. Students are directed to attempt the compulsory Section A question and any 3 questions from Section B.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    34 views1 page

    Econ 1

    Uploaded by

    Ochola Charles
    This document contains instructions for a 2 hour economics exam consisting of 4 questions. Section A contains 1 compulsory question with subsections on topics like laissez-faire economy, price control methods, transfer earnings, and needs vs wants. Section B contains 3 optional questions focusing on capital formation vs depreciation, measuring national income, and direct vs indirect production. Students are directed to attempt the compulsory Section A question and any 3 questions from Section B.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    BEGINNING OF TERM II 2018 EXAM

    S.5 ECONOMICS
    P220/1
    TIME : 2 HOURS
    INSTRUCTIONS
    - Attempt FOUR questions in all
    - Section A is compulsory
    - Attempt any three questions from section B.

    1. (a) (i) What is meant by a laissez – faire economy? (02 marks)


    (ii) State any two demerits of leissez – faire economy. (02 marks)
    (b) (i) Distinguish between resale price maintenance and a minimum price.
    (02 marks)
    (ii) Give any two methods of price control that can be used in an economy.
    (02 marks)
    (c) (i) Define the term transfer earning. (01 mark)
    (ii) Given that Mr. Okwalo receives transfer earning of shs. 150,000
    and his economic rent is twice the transfer earnings.
    Calculate Mr. Okwalo’s actual payment. (03 marks)
    (d) (i) What is meant by transfer payment? (01 mark)
    (ii) Give three examples of transfer payments. (03 marks)
    (e) (i) Distinguish between needs and wants. (02 marks)
    (ii) State any two characteristics of wants. (02 marks)

    SECTION B

    2. (a) Distinguish between capital formation and capital depreciation. (04 marks)
    (b) Examine the role of capital in development of an economy. (16 marks)

    3. (a) How is national income measured in an economy? (06 marks)


    (b) Explain the steps that should be taken to increase the size of national income
    in low developing countries. (14 marks)

    4. (a) Distinguish between direct production and indirect production. (04 marks)
    (b) Explain the disadvantages of having a large subsistence sector in an economy.
    (16 marks)

    5. (a) How are prices determined in an economy? (10 marks)


    (b) Explain the role of price in allocation of resources in a free enterprise
    economy. (10 marks)

    END

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