PRESIDENT’S OFFICE

REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT

FORM SIX PRE-MOCK JOINT EXAMINATIONS

CODE: 151/1 ECONOMICS 1

TIME:3Hrs ______________ THURSDAY; 27th SEPT.2018

INSTRUCTIONS

1. This paper consists of eight (8) questions in both sections A and B.

2. Answer five (5) questions choosing at least two (2) questions from each section.
3. Each question carries twenty (20) marks.
4. Non programmable calculator may be used.
5. Cellular phones are not allowed in the examination room.
6. Write your Examination Number on every page of your answer booklet(s) provided.

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 SECTION A
1. (a) outline five uses of production possibility curve
(b) Discuss five reforms made by Tanzania Government towards free market economy

2. (a) What is capital consumption? Determine four factors that may cause capital consumption.
(b) Discuss six factors which determine real wage of a worker.

3. (a) Account for the factors that affect prices of goods and services in the market ( 5 points)
(b) Discuss five (5) effects of oligopoly in any economy

4. (a) Discuss five (5) causes of exceptional demand curve

(b) The demand function of a good is Q=300 – 20P1P2 + 3P2Y where P1 = price of goods,
P2 = price of other goods Y= income if P1 = 10, P2 = 5, and Y = 500,
Calculate
(i) Own price elasticity of demand and comment your answer
(ii) Cross elasticity of demand

SECTION B
5. (a) Examine five success of privatization policy in Tanzania
(b) Explain five causes of unemployment

6. (a) Mention five factors influencing the size of the firm

(b) A firm faces an average revenue equation AR=100 – 0.01 Q while total cost function is
Tc=50Q +30,000
(i) At what level of output will a firm maximize profit?
(ii) Compute AR, AVC, AFC and profit
(iii) If the government decides to levy a direct tax 10% on the firm what will be the new
level of profit maximizing output AR, AVC, AFC and Profit?

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7. (a) Explain five monetary measures which are used to control inflation
(b) Given the following Table:-

1980 1982
Commodities
Price Tshs Quantity (kg) Price (Tshs) Quantity (kg)

Milk 8 12 10 15

Rice 5 10 8 12

Meat 10 25 12 25

Fish 15 15 20 20

Calculate (i) Price relative for meat

(ii) Volume relative for fish
(iii) Laspeyres price index
(iv) Paasches price index
8. (a) Explain five economic effects of overpopulation
(b) Mention and explain various theories of trade cycle (five points).

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