Economics Past Questions and Answers

One of the physical measures that can be used to reduce the volume of imports is the

When a number of countries agree to remove all trade barriers among themselves and at the same time charge a common tariff against non member countries, it known as

Which of the following international organizations is concerned with the stabilization of the balance of payments? the

The following data shows the budget of hypothetical country in2006. Study data and answer the questions that follow: <br/> <br/><table class='tbn'><tbody><tr><td> <b> Revenue</b> </td><td> <b>[$ million]</b> </td></tr><tr><td> Company tax </td><td> 240 </td></tr><tr><td> Workers' income tax </td><td> 160 </td></tr><tr><td> Excise duties </td><td> 80 </td></tr><tr><td> Taxes on exports </td><td> 100 </td></tr><tr><td> Value added tax </td><td> 150 </td></tr><tr><td> Import duties </td><td> 90 </td></tr><tr><td> Non-tax revenue </td><td> 40 </td></tr></tbody></table><br/><br/><br/> <br/><table class='tbn'><tbody><tr><td> <b>Expenditure</b> </td><td> <b> [$ million]</b> </td></tr><tr><td> Construction of roads </td><td> 100 </td></tr><tr><td> Building of schools </td><td> 120 </td></tr><tr><td> Payment of workers' salaries </td><td> 150 </td></tr><tr><td> Government administration </td><td> 200 </td></tr><tr><td> Maintenance of health facilities </td><td> 220 </td></tr><tr><td> Extension of electricity to rural areas </td><td> 180 </td></tr><tr><td> Maintenance of official vechicles </td><td> 70 </td></tr></tbody></table><br/><br/><br/>(a) How many revenue was realised from:<br/>(i) direct taxes;(3 marks) ,(ii) indirect taxes (3 marks)<br/>(b)Calculate the total:<br/>(i) recurrent expenditure (3 marks) ,(ii) capital expenditure (3 marks)<br/>(c) What pencentage of total revenue was collected as indirect taxe? (3 marks)<br/>(d) State two examples of non-tax revenue (2 marks)<br/>(e) What was the budget surplus or deficit? Explain your answer. (3 marks). <br/> <br/>

The utility schedule of a consumer for a brand of ice cream is shown in the table below. Use the information to answer the questions that follow: <br/> <br/><table class='tbn'><tbody><tr><td> <b>Units Consumed (Q)</b> </td><td> <b>Total Utility (TU)</b> </td><td> <b>Marginal Utility (MU)</b> </td></tr><tr><td> 0 </td><td> 0 </td><td> - </td></tr><tr><td> 1 </td><td> 10 </td><td> 10 </td></tr><tr><td> 2 </td><td> 19 </td><td> R </td></tr><tr><td> 3 </td><td> P </td><td> 6 </td></tr><tr><td> 4 </td><td> 30 </td><td> 5 </td></tr><tr><td> 5 </td><td> 31 </td><td> S </td></tr><tr><td> 6 </td><td> Q </td><td> 0 </td></tr><tr><td> 7 </td><td> 29 </td><td> -2 </td></tr></tbody></table><br/><br/><br/>(a) Calculate the values of P,Q,and S. (8 marks).<br/>(b) Given that the jprice of ice cream is $ 1.00 per unit, at what level of consumption is the consumer in equilibrium? Explain your answer. (3 marks).<br/>(c) Use a graph sheet, draw the marginal utility curve.(3 marks).<br/>(d) State the law of diminishing marginal utility. (3 marks).<br/>