Economics Past Questions and Answers

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

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

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

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

The extract from a country’s balance of payments account is shown below.

Item	Import ($ million)	Export ($ million)
Agricultural products	------	200
Mineral products	-----	300
Consumer goods	250	----
Capital goods	400	----
Insurance	50	25
Banking	75	30
Transportation	85	25
Loans	150	60

Using the table above, calculate the:
(a) Balance of trade;
(b) Invisible trade balance;
(c) Balance on current account.