Economics Past Questions and Answers

Free trade is one in which ____________

The exploitation of mineral resources constitutes which form of production?

The table below shows the workers engaged by an agricultural firm over a period of time. Study it and answer the questions that follow;<br/><table class='tbn'><tbody><tr><td> Number of workers </td><td> Total product </td><td> Marginal product </td><td> Average product </td> </tr><tr><td> 0 </td><td> 0 </td><td> 0 </td><td> 0 </td></tr><tr><td> 1 </td><td> 20 </td><td> 20 </td><td> 20 </td></tr><tr><td> 2 </td><td> 50 </td><td> 30 </td><td> z </td></tr><tr><td> 3 </td><td> 70 </td><td> 20 </td><td> 23.3 </td></tr><tr><td> 4 </td><td> 80 </td><td> y </td><td> 20 </td></tr><tr><td> 5 </td><td> 80 </td><td> 0 </td><td> 16 </td></tr><tr><td> 6 </td><td> x </td><td> -9.8 </td><td> 11.7 </td></tr></tbody></table><br/><br/><br/>(a) Calculate the values of X, Y, and Z.<br/>(b) At what level of employment of labour does the firm experience:<br/>i. increasing returns <br/>ii. decreasing returns <br/>ii. negative returns<br/>(c) State the law of diminishing returns<br/>(d) i. On a graph sheet, draw the total product and marginal product curves.<br/>ii. State any two relationships between the two curves in (d)(i) above

The figure represents the possibility curve of a nation, Use it to answer the questions that follow<br/><br/>(a) What is the opportunity cost of:<br/>i. producing 30 units of cocoa;<br/>ii. increasing textile production from 30 to 40 bales?<br/>(b) interpret the following points as found in the graph:<br/>i. point Y<br/>ii. point G<br/>iii. point X<br/>(c) List three conditions that can enable the nation to produce at point X.<br/>(d) State two basic economic concepts illustrated in the diagram above.<br/>(e) i. Define production possibility curve<br/>ii. What does the slope of the production possibility curve Indicate?

(a) Define consumer goods.<br/>(b) Explain the following forms of capital with an example each:<br/>i. fixed capital<br/>ii. social capital<br/>iii. circulating capital<br/>(c) Outline three reasons for the low level of savings in a country