Economics Past Questions and Answers

The table below relates to the application of fertilizer to a fixed area of land and the production of maize. Use the table to answer the questions that follow.

Tones of fertilizer Applied	Total production in Bags	Marginal product
0	1,000	-
1	1,100	100
2	1,250	150
3	1,500	250
4	-	400
5	-	250
6	-	125
7	2,350	-
8	2,380	-
9	2,330	-

(a) What will be the total output of maize when no fertilizer is applied to the land?
(b) Calculate the total product after the application of the following quantities of fertilizer:
(i) 4 tonnes;
(ii) 5 tonnes;
(iii) 6 tonnes.
(c) Calculate the marginal product after the application of the following quantities of fertilizer:
(i) 7 tonnes;
(ii) 8 tonnes;
(iii) 9 tonnes.
(d) (i) After what level of the application of fertilizer does diminishing marginal returns occur?
(ii) After what level of fertilizer application will the total output decrease?

What would be the economic consequences if prices were fixed by the government?

Explain the advantages and disadvantages of a joint stock company as a form of business organization.

What are the positive and negative effects of inflation on the economy?

Distinguish between:
(a) Economic resources and non-economic resources.
(b) Want and Demand.
(c) Money Cost and Real Cost.