Economics Past Questions and Answers

One of the reasons why government may erect a trade barrier is to

Which of the following is not a function of the West African Development Bank?

The diagram below represents the cost and revenue situation of a firm. Use the information in the diagram to <br/>answer the questions that follow. <br/><br/>(a) Why would the firm not produce at (i) Q\(\_1\) (ii) Q\(\_3\) ? [6 marks]<br/>(b) How much profit does the firm make at P\(\_1\)? [4 marks]<br/>(c) If price falls to P\(\_1\) <br/>(i) What quantity would the firm produce? [2 marks]<br/>(ii) What type of profit does the firm make? [2 marks]<br/>(iii) Explain your answer in c(ii). [4 marks]<br/>(d) In which type of market s the firm operating?[2 marks]

The tables below show the expected revenues and projected expenditures from the budget of a hypothetical country in 1998. Use the information in the tables to answer the questions that follow. <b>EXPECTED REVENUE</b><br/><table class='tbn'><tbody><tr><td> <b>ITEM</b> </td><td> <b> AMOUNT ($ millions)</b> </td></tr><tr><td> Rents, royalties and profits </td><td> 75.00 </td></tr><tr><td> Company income tax </td><td> 150.00 </td></tr><tr><td> Customs and excise duties </td><td> 300.20 </td></tr><tr><td> Personal income tax </td><td> 80.00 </td></tr><tr><td> Fees specific charges </td><td> 60.80 </td></tr><tr><td> Value added tax </td><td> 100.00 </td></tr></tbody></table><br/><br/><br/><b>PROJECTED EXPENDITURE</b><br/><table class='tbn'><tbody><tr><td> <b> ITEM</b> </td><td> <b> AMOUNT ($ millions)</b> </td></tr><tr><td> General administration </td><td> 220.10 </td></tr><tr><td> Maintenance of foreign missions </td><td> 50.00 </td></tr><tr><td> Transfer payments </td><td> 65.00 </td></tr><tr><td> Building of schools and hospitals </td><td> 200.00 </td></tr><tr><td> Road construction </td><td> 180.90 </td></tr></tbody></table><br/><br/><br/>(a) Calculate the total revenue from<br/>(i) direct taxes [3 marks] <br/>(ii) indirect taxes [3 marks]<br/>(iii) non-tax sources [3 marks]<br/>(b) Determine the total<br/>(i) capital expenditure [3 marks]<br/>(ii) recurrent expenditure [3 marks]<br/>(c) Determine whether the budget is a surplus or deficit. [5 marks]

Explain how the following factors will affect the demand for a commodity X:<br/>(a) a decrease in the price of a implement Y; [5 marks]<br/>(b) an increase in consumers' disposable income; [5 marks]<br/>(c) a decrease in the apply of a substitute P; [5 marks]<br/>(d) an increase in income tax. [5 marks] )