Economics Past Questions and Answers

The diagram above represents the equilibrium position of a firm in a perfectly competitive industry. Study it carefully and answer the questions that follow.
(a) i. At what level of output and prices is the firm in equilibrium?
ii. Calculate the firm's profit in equilibrium
iii. What type of profits is it?
(b) i. Why is the average revenue (AR) function horizontal?
(c) State any two ways in which marginal cost (MC) and average total cost (ATC) are related.

Question 1782:

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

Item	Imports ($ million)	Export ($)
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

Question 1783:

(a) i. Define distribution of goods.
ii. Illustrate the normal chain of distribution of goods.
b. Describe a consumers' cooperative society.
c. Outline any four roles performed by a consumers' cooperative society

Question 1784:

(a) What is an industry?
(b) Explain the following:
i. division of labor
ii. economies of scale
(c) Outline any four internal economies of scale.

Question 1785:

a. Define a joint venture.
b. identify any three merits of a private company over a partnership.
c. State any three sources of finance to a public enterprise