MAY 2012

U/ID 1596/ RZK/TZK

Maximum : 100 marks

Time : Three hours

SECTION A (10 2 = 20 marks) Answer ALL questions. All questions carry equal marks. Each answer should not exceed 50 words. 1. State the wealth definition of economics.

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2. Define the law of demand.

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3. What is cardinal utility?

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4. What are factors production?

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5. What is break-even point?

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6.

Define marginal productivity.

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7. What do you mean by quasi- rent?

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8. Define inflation.

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9. What is international trade?

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10. Define tax.

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SECTION B (5 8 = 40 marks) Answer any FIVE questions. All questions carry equal marks. Each answer should not exceed 300 words. 11. Explain the various kinds of demand.

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12. What are the factors determining elasticity demand?

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U/ID 1596/ RZK/TZK

13.

Economics is a science of choice Explain. Gx uukzu A USP. State the features of monopolistic competition.

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Explain the marginal productivity theory of distribution.

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16. 17.

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What are the features of tax?

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Explain the causes for inflation.

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SECTION C (2 20 = 40 marks) Answer BOTH questions. All questions carry equal marks. Each answer should not exceed 1200 words. (a) Explain the method of measuring national income . What are the difficulties to measure it?

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Or (b) Criticise the theory of quasi rent.

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U/ID 1596/ RZK/TZK

19.

(a)

How is price determined under monopoly?

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Or (b)

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Analyses the uses and limitations of breakevent-analysis.

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U/ID 1596/ RZK/TZK