Economics Past Questions and Answers

Given the demand function for commodity X Qd = 12 - 2P where Qd is the quantity demanded and P the price of the commodity.<br/><table class='tbn'><tbody><tr><td> P </td><td> 6 </td><td> 5 </td><td> 4 </td><td> 3 </td><td> 2 </td><td> 1 </td><td> 0 </td></tr><tr><td> Qd </td><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td></tr></tbody></table><br/><br/><br/>Use the demand function to complete the table <br/>(b) Draw the individual's demand curve (use of graph paper is essential<br/>(c) What is the maximum quantity the individual can buy of commodity X per unit of time?<br/>(d) What is the relationship between quantity demanded and price in the function Qd = f(P)?

The table below relates to the application of fertilizer to a fixed area of land and the production of maize. Use the table to answer the questions that follow.<br/><table class='tbn'><tbody><tr><td> <b>Tones of fertilizer Applied</b> </td><td> <b>Total production in Bags</b> </td><td> <b>Marginal product</b> </td></tr><tr><td> 0 </td><td> 1,000 </td><td> - </td></tr><tr><td> 1 </td><td> 1,100 </td><td> 100 </td></tr><tr><td> 2 </td><td> 1,250 </td><td> 150 </td></tr><tr><td> 3 </td><td> 1,500 </td><td> 250 </td></tr><tr><td> 4 </td><td> - </td><td> 400 </td></tr><tr><td> 5 </td><td> - </td><td> 250 </td></tr><tr><td> 6 </td><td> - </td><td> 125 </td></tr><tr><td> 7 </td><td> 2,350 </td><td> - </td></tr><tr><td> 8 </td><td> 2,380 </td><td> - </td></tr><tr><td> 9 </td><td> 2,330 </td><td> - </td></tr></tbody></table><br/><br/><br/>(a) What will be the total output of maize when no fertilizer is applied to the land?<br/>(b) Calculate the total product after the application of the following quantities of fertilizer:<br/>(i) 4 tonnes;<br/>(ii) 5 tonnes;<br/>(iii) 6 tonnes.<br/>(c) Calculate the marginal product after the application of the following quantities of fertilizer:<br/>(i) 7 tonnes;<br/>(ii) 8 tonnes;<br/>(iii) 9 tonnes.<br/>(d) (i) After what level of the application of fertilizer does diminishing marginal returns occur?<br/>(ii) After what level of fertilizer application will the total output decrease?

What would be the economic consequences if prices were fixed by the government? <br/>

Explain the advantages and disadvantages of a joint stock company as a form of business organization. <br/>

What are the positive and negative effects of inflation on the economy? <br/>