Admission Number: Class: map fh Economics Jf SRELANKAN “e Grade 8 INTERNATIONAL SCHOOL RIYADH, a SEMIDE serion | Second Semester Beamina 20Keabi; ote Monday 29th May 2017 \ Question | Marks ) Instructions to Candidates 1 © « Fill in the boxes at the top of this page with your admission number and class, |_? + This paper contains 0S questions on 17 pages. = 4 + Encirele the number of each question answered. : + Do not use paper clips, highlighter, glue or correction fluid. 2 + Copying will result in zero marks, 7 8 Information for Candidates > + The total mark for this paper is 100 10 + The marks for each question are shown in brackets (). 7 2 Advice to Candidates 13 14 + Read each question carefully before you start to answer it. 7 «+ Keep an eye on the time, 16 + Check your answers if you have time at the end, 7 + Write your answers neatly and in good English. 18 9 ; 20 Examiner’s use only 7 ‘Name Marks | Signature 22 Matked by 2 = 24 ‘Checked by ce -rotat Department of Commerce, Sri Lankan International School Riyadh - KSAOy‘Answer all the questions. Write your answers in the space provided. Some questions must be answered with a cross in a box [X] .If you change your] mind about an answer, put a line through the box Jand then mark your new} answer with a cross [5<] system? A. Ithas both industrial and service sector. B. Ithas both large and small firms. C. Ithas both public and private sector. (b)Define the term opportunity cost. to improve her qualification. B, The cost of leaving school. 01. (a) What is a feature of a mixed economic system but not a planned economic (c)A student leaves school and decides to spend the next two year ata college What is the opportunity cost to the student of taking this decision? A. The cost of the course fees at the college. C. The money eamed if she had worked for the two years. (01 marks) (02marks) (marks) Department of commerce 1 Economics G8(@) What is meant by production possibility frontier (PPF)? (02 marks) 200) Zz 150 Machinery 0 75 100 (2) What is the opportunity cost of choosing Y instead of X? (marks) (ii)Explain how can the economy attain point Z? (03 marks) Department of commerce 2 Economics 68(B Using the diagram below, draw the effects of improvement in technology used in making of electronic equipments on the price of electronic equipments, Label the new curve, the new equilibrium price and quantity. Price Q Quantity (03 marks) (g) Draw the effect of a fall in subsidies provided by the government on price of electronic equipments on the diagram given below. Label the new curve, the new equilibrium price and quantity. Price Quantity (03 marks) a Department of commerce 3 Economics G8(i) Explain what is meant by a ‘proportionate relationship’ between price and (02 marks) quantity supplied. (i) Identify two factors affecting price elasticity of supply of a product (@2marks) (Total 20 marks) HEGRE assasasseeeroneeoeesustdseeesteeeeesnststzceeeeteeeeestsstinceeeteeeensstsstis-eeeteeeel Department of commerce Economics G8supplied per day. 02. The table shows the quantity of coffee demanded per day and the quantity price per kilo of rice is £112 ‘The excess supply will be 05 kilos rice ‘The excess supply will be 03 kilos rice Sap (©)Define price elasticity of supply The excess demand will be 05 kilos rice The excess demand will be 03 kilos rice. Price (E) per Kilo | Demand (Kilos) | Supply (Kilos) it "| 18 Sle rreeeea3. 10 20 20 09 22 HEEL, (a) What is the equilibrium price of rice? A £11 B £10 c £09 (Otmarks) (b) With reference to above data. What is the excess demand or supply when (OLmarks) (02marks) Department of commerce 5 Economics G8(d) Manufactured goods has a price elasticity of supply which is greater than 1. Explain what is meant by the above statement. _ (03 marks) (e) State the formula for Income elasticity of demand. (01 mark) (f) Change in average income 3% and change in demand for rice is 9%. Calculate the income elasticity of demand. You are advised to show your working. (02marks) Department of commerce 6 Economics G8Q (i) What evidence is there in the above table to suggest that Margarine is an inferior good? TEP Holiday package abroad | +1.80 “Margarine -0.37 Residential electricity 40.75 (02 marks) Department of commerce Economics G8(®)Discuss why market failures could occur in an economy. (04 marks) (Total 20 mark) 03. (a) (i) What is meant by ‘division of labour’? (02 marks) (ii) What might be a direct benefit to the individual worker of a specialised job? A Specialisation can enable the worker to become more skilled. B Specialisation enables a better quality product to be produced. C Specialisation enables the firm to introduce mere machinery. D Specialisation makes better use of resources. (Oimarks) Department of commerce 8 Economics 68(b) What is meant when an industry is said to become more capital-intensive rather than labour-intensive? (03 marks) (©) @ Show the effect on the wage rate when the proportion of women employed 5) }ima country increases. ‘Wage rate Supply for labour wr Demand for labour 0 Q Quantity (03 marks) Department of commerce 9 Economics G8(ii)Show the effect of a minimum wage on wage rate on the demand and supply diagram. Wage rate SL ~ DL Quantity (03 marks) (d) Outline two reasons why a government would impose a minimum wage rate. (02 marks) Department of commerce 10 Economics G8oO (©) Explain two effects that minimum wage controls may have on the labour market, (04 marks) (f) List down two reasons for wage differences between an accountant and cleaning staff in an organization, (O2marks) (Total 20 marks) Department of commerce a Economics 6804, (a) (i) What is meant by efficiency? (02 marks) (ii) Explain the term public goods and give an example. (03marks) (b) () What is meant by a trade union? (02 marks) (ii) What is a function of a trade union? od) | A, To negotiate workers’ contracts B. To promote workers to more responsible jobs C. To appoint workers for firms D. To supervise the workers in the firm. (marks) Department of commerce 12 Economics 68: griculture is the most important sector of the economy, employing over 80% of the work force. Agricultural products are also Uganda's main exports. Tertiary sector is the least important sector in its economy. (©) Explain why Uganda is considered as one of the less developed countries. (04 marks) (a) What is meant by secondary sector? (02 marks) (©) @ Define the term ‘de-industrialization’. (02 marks) Department of commerce 2B Economics 68(ii) Discuss two main causes of de-industrialization, 05. Alan Wong is a taxi driver. Like many other taxi drivers in his city he owns his taxi. His monthly costs and the total of customers per month are given below. Cost January | February Petrol Loan repayment Insurance License fee Advertising Telephone charge January Februa: Number of customers 250 300 Department of commerce 14 (04 marks) (Total 20 marks) Economics G8(a) Using examples from the above table explain the difference between fixed cost and variable cost. (06 marks) (©) @ Calculate the average cost. Show workings, (02 marks) Department of commerce 45 Economics G8Gi) Draw the average cost curve below. (02 marks) Average cost Output (ii) What is meant by economics of scale? (02 marks) @ Explain how the use of efficient machinery can bring economics of scale toa firm. (04 marks) Department of commerce 16 Economics G8range of products? A Buying B Financial C Risk Bearing D Technical (01 mark) i \ (©) @ Which type of economy of scale result from a firm producing a diverse | | (ii) Which change must occur when a firm starts to experience | diseconomies of scale? | | | | | A Average costs begin to rise B Employees are made redundant C Profits turn into losses D Variable costs become fixed. (on (Total 20 marks) i TOTAL MARK= 100 MARKS Department of commerce v Economics 68Economics G8 18 Department of commerce