Economics Past Questions and Answers

(a) Distinguish between the following pairs of terms:<br/>i. capital expenditure and recurrent expenditure:<br/>ii. fiscal policy and monetary policy.<br/>b. Explain four reasons why the government of a country imposes taxes.

(a) Define tariff.<br/>(b) State the following laws:<br/>i. The law of absolute cost advantage:<br/>ii. The law of comparative cost advantage.<br/>(c) Outline any four assumptions behind the law of comparative cost advantage

a. What is money?<br/>b. Explain the following concepts:<br/>i. value of money:<br/>ii. demand for money,<br/>(c) ldentify any four determinants of transaction demand for money

(a) Distinguish between competitive demand and joint demand.<br/>(b) Using diagrams, explain how the following factors will affect the equilibrium price and quantity of commodity R in the market<br/>i. an increase in the price of the Complement of commodity R:<br/>ii. an increase in the price of a substitute of commodity R<br/>iii. imposition of an indirect tax on commodity

(a) Differentiate between subsistence farming and commercial farming.<br/>(b) State four features of subsistence farming.<br/>(c) Outlines two positive and two negative effects of mining on the economy of West African countries