Economics Past Questions and Answers

(a) What is production possibility curve? (3marks)<br/>(b) Draw a production possibility curve and indicate any:<br/>(i) Point P, where resources are fully utilized;<br/>(ii) Point U, where resources are under utilized;<br/>(iii) Point X, where production is not feasible. (8 marks)<br/>(c) Explain any <b>two </b>factors that can make production at Point X feasible. (6marks).<br/>(d) Why is the production possibility curve negatively sloped? (3marks)

(a) What is:<br/>(i) peasant farming? (2marks)<br/>(ii) Co-operative farming?(3marks)<br/>(b) Identify any five ways through which government can assist peasant farmers. (15 marks).

(a) What is price elasticity of supply?(2marks)<br/>(b) Differentiate between joint supply and cometitive supply.(6marks)<br/>(c) Explain any four determinants of elasticity of supply. (12marks)

(a) Define:<br/>(i) Building Society (2marks);<br/>(ii) Central Bank. (3marks)<br/>(b) Highlight any five instruments of the Central Bank in regulating the supply of money. (15marks).

(a) Who is a discriminating monopolist. (2 marks)<br/>(b) Explain any four conditions necessary for a monopolist to practise price discrimination. (12 marks).<br/>(c) Explain any two benefits enjoyed by a discriminating monopolist. (6 marks)