1.
The table below shows the cost of production and output of maize. The price of maize is fixed at $20.00. Use the information to answer the questions that follow:
| Maize (bags) | Total Variables ($) | Total Cost ($) | Total Revenue ($) |
|---|---|---|---|
| 0 | 0 | 10 | 0 |
| 1 | 8 | w | 20 |
| 2 | 10 | x | 40 |
| 3 | u | 25 | y |
| 4 | v | 32 | z |
| 5 | 28 | 38 | 100 |
(a) What is the value of the total cost? Give a reason for your answer.
(b) Calculate the values of uuu, vvv, www, xxx, yyy, and zzz.
(c) Calculate the profit levels for 1 and 4 bags of maize.
(d) In what market structure is the firm operating? Give a reason for your answer.
The table below shows the percentage age distribution of the population of Country Y in 2010. The population was 200,000. Use the information to answer the questions that follow:
| Age Group (years) | 0 - 18 | 19 - 40 | 41 - 60 | 60 and above |
|---|---|---|---|---|
| Percentage of Population | 30% | 35% | 25% | 10% |
(a) Calculate the size of the:
(i) Working population.
(ii) Dependent population.
(b) If the population of the 0-18 age group increases by 2% and 0.5% of the 61+ age group dies, what is the natural increase in the population?
(c) Describe the age distribution of the population. Give a reason for your answer.
(a) State Professor Robbins’ definition of Economics.
(b) Explain the following concepts:
(i) Opportunity cost.
(ii) Scale of preference.
(iii) Production possibility curve.
(c) Outline three reasons for the study of Economics as a subject.
(a) Define labour force.
(b) Explain the following concepts with an example each:
(i) Occupational mobility of labour.
(ii) Geographical mobility of labour.
(c) Outline four factors that can influence the size of the labour force in a country.
(a) What is money?
(b) Outline any three characteristics of money.
(c) Explain one 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 a 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.