KIKAAYA COLLEGE SCHOOL

END OF TERM 1 EXAMS 2008

ECONOMICS P220/1
PAPER ONE S.5
TIME: 3 HOURS

INSTRUCTIONS:
Answer four questions in all
Section A is compulsory; Answers to this section should be concise and
precise
Answer three questions form section B

SECTION A 40 marks)

1 (a) (i) Distinguish between public goods and economic goods. (2mks)
(ii) Outline any two characteristics of public goods in your country. (2mks)

(b) (i) Distinguish between price leadership and resalepricementainance.(2mks)

(ii) Outline two merits of resale-price mentainance in your country. (2mks)

(c) (i) What is meant by joint supply? (1mk)

(ii) Mention any three commodities with joint supply. (3 mks)

(d) (i) What is meant by excess capacity production. ( 1 mk)

(ii) Outline any three causes of excess capacity in production. (3mrks)

(e) (i) What is meant by product differentiation. (1mk)

(ii) Give any three ways of product differentiation in your country.(3mks)

(f) (i) Distinguish between G.D.Pand G.NP (2mrks)

(ii) Give any two reasons for low G.D.P in your country. (2mks)

(g) Outline any four social indicators of under development in your country.
(4mks)
(h) Outline any four causes of under employment in your country. (4mks)
(i) (i) What is meant by the term multiplier? (1mk)
(ii) Given initial government expenditure of 200,000= and mpc as 80%,
calculate the final level of income. (3mks)

(j) Outline any four causes of cost inflation in your country.

 SECTION B. (40 mks)

2. (a) Account for price fluctuation of Agricultural products in

your country.(10mks)

(b) Explain the problems faced during plan formulation in your country. (10mks)

6.(a) Distinguish between labour supply and labour demand. (4 mks)

(b) Explain the factors influencing labour supply in your country. (16mks)

END