Economics Past Questions and Answers

(a) What is money?<br/>(b) Outline any three characteristics of money.<br/>(c) Explain an effect of inflation on each of the functions of money.

(a) What is unemployment of labour?.<br/>(b) With an example each, explain the following types of unemployment:<br/>(i) frictional unemployment;<br/>(ii) structural unemployment;<br/>(iii) seasonal unemployment.<br/>(c) Outline any four causes of unemployment in a country.

(a) Explain any four causes of demand-pull inflation.<br/>(b) Outline any four undesirable effects of inflation.

(a) What is economic integration?<br/>(b) Distinguish between a <i>free trade area</i> and a customs union.<br/>(c) Describe two advantages and two disadvantages of free trade area

The extract from a country’s balance of payments account is shown below.<br/><table class='tbn'><tbody><tr><td> Item </td><td> Import ($ million) </td><td> Export ($ million) </td></tr><tr><td> Agricultural products </td><td> ------ </td><td> 200 </td></tr><tr><td> Mineral products </td><td> ----- </td><td> 300 </td></tr><tr><td> Consumer goods </td><td> 250 </td><td> ---- </td></tr><tr><td> Capital goods </td><td> 400 </td><td> ---- </td></tr><tr><td> Insurance </td><td> 50 </td><td> 25 </td></tr><tr><td> Banking </td><td> 75 </td><td> 30 </td></tr><tr><td> Transportation </td><td> 85 </td><td> 25 </td></tr><tr><td> Loans </td><td> 150 </td><td> 60 </td></tr></tbody></table><br/><br/><br/>Using the table above, calculate the:<br/>(a) Balance of trade;<br/>(b) Invisible trade balance;<br/>(c) Balance on current account.