Economics Past Questions and Answers

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

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

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

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

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