Economics Past Questions and Answers

(a) State and explain the law of comparative cost advantage. [12 marks]<br/>(b) Give<b> two</b> limitations of the law as a theory of international trade. [8 marks]

(a) Define money. [2 marks]<br/>(b) State the three motives for holding money. [6 marks]<br/>(c) Mention<b> two</b> determinants each of the motives for holding money. [12 marks

(a) Distinguish between economic activities and an economic system. [5 marks]<br/>(b) Explain the following terms:<br/>(i) production; [5 marks]<br/>(ii) distribution; [5 marks]<br/>(iii) consumption15 marks]

(a) Define:<br/>(i) elasticity of demand; [2 marks]<br/>(ii) price elasticity of demand. [2 marks]<br/>(b) State any <b>four</b> determinants price elasticity of demand. [12 marks]<br/>(c) Draw curves illustrating<br/>(i) fairly elastic demand; [2 marks]<br/>(ii) perfectly inelastic demand. [2 marks]

(a) Define market in economics. [2 marks]<br/>(b) State any three features of a monopoly. [9 marks]<br/>(c) Outline any ee sources of monopoly power. [9 marks]