Economics Past Questions and Answers

The table below shows the scale of preference of a student - Mr Smith whose disposable income is $7.00. Use the information in the table to answer the auestoins that follow. <br/> <br/><table class='tbn'><tbody><tr><td> <b>Items needed</b> </td><td> <b>Price ($)</b> </td></tr><tr><td> Textbook </td><td> 5.00 </td></tr><tr><td> Shirt </td><td> 2.00 </td></tr><tr><td> Shoes </td><td> 3.00 </td></tr><tr><td> Trousers </td><td> 3.00 </td></tr><tr><td> Notebook </td><td> 1.00 </td></tr><tr><td> School fees </td><td> 7.00 </td></tr><tr><td> Mattress </td><td> 10.00 </td></tr></tbody></table><br/><br/><br/>(a)(i) What will Mr. Smith spend his money on?<br/>(ii) Explain your answer in 2(a)(i).<br/>(b)(i) What is the opportunity cost of Mr. Smith's decision in 2(b)(i)?<br/>(ii) Explain your answer in 2(b)(i).<br/>(c)(i) If Mr. Smith's disposable income increases to $10.0, what will he spend it on?<br/>(ii) What is the opportunity cost of the decision in 2(c)(i)?<br/>(d) Define "scale of preference" and "opportunity cost".<br/>(e) What is the importance of a scale of preference?

(a) What is:<br/>(i) peasant farming? <br/>(ii) commercial farming?<br/>(b) Describe<b> five</b> ways in which agriculture contributes to the economic development of your country.

(a) Distinguish between small scale prodution and large scale production<br/>(b) Describe any <b>five</b> internal economies of large scale production.

(a) Explain any<b> four</b> benefits of industrial development in an economy<br/>(b) Outline any <b>four</b> measures that will encourage industrial growth in your country.

(a) Differentiate between direct and indirect taxation<br/>(b) Highlight any<b> five </b>advantages of indirect taxation to developing countries