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ZIMBABWE SCHOOL EXAMINATIONS COUNCIL

General Certificate of Education Ordinary Level

ECONOMICS 228312
PAPER 2

NOVEMBER 2009 Sf,SSION 2 hours

Additional materials:
Answer PaPer

TIME 2 hours

INSTRUCTIONS TO CANDIDATES

Write your name, Centre number and candidate number in the spaces provided on the answer
paper/answer booklet.

Answer any four questions.

z7
Write your answers on the separate answer paper provided'
Ifyou use ntore than one shcet ofpaper, fasten the sheets together.

INFORN{ATIO]\'i FOR CANDIDATES

The number of marks is given in brackets [ ] at the end of each question or part question.
You are permitted to drar,v on material tiom your own country'

Thtt qr..tion paper consists of 3 printed pages and 1 blank page'

Copyright: Zimbabwe School Exarninations Cor"rncil, N2009'
OZIMSEC N2OO9 [Turn over
 -,

)
Answer anY four questions.

I (a) Explain the link befween scarcity and choice' tlQl

(b) what are the advantages and disadvantages of a free market economy

in the allocation of resources? [15]

(a) Explain the following terms, using examples from the economy
of
Zimbabwe:

(r) primary industries; t3l

(ii) secondary industries; I3l

(iii) ftrtiary industries. t3l

(b) \l.hat are the possible benehts of integration to a firm? t16]

(a) what are the main features of a private lirnited company? t10l

may raise
(b) Explain the various ways by w'hich a public limited company
.upitut for its business op"iatio,s' [15]

(a) Explain the following tenns:

(i) collective bargaining; [4]

(ii) minimum wage. [8]

(b) Identify and explain clearly the actions that rnembers of a trade union
may adopt in the event of collective bargaining failing' [13]

(a) Define the tbllowing terms:

(i) normal good;

(ii) substitute good;

(iir) cotnplement good.

Lr2l

(b) Explain the factors that determine the demand fo, u no.ri1al good. [13]

2283r2 N2009

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 !

6 (a) Distinguish between perfect and monopoly.

"ornpltitio, Iel
(b) why is a monopoly capabre of earning long-run super normar profits?
[16]

7 (a) What is a country's gross domestic product (GDp)? I5l

(b) what difficulties are encounterecl in measuring the
country such as Zimbabwe? - GDp of a developing
t2O)
(a) with the aid of clearly labelled diagrams, explain the difference
between
demand-pull and cost-push inflation.
t10]
(b) How does a high rate of inflation affect the functions
of money? t15l
e (a) Explain the following terms:

(i) free trade area;

(ii) common market-

u2l
(b) what advantages may a country be seeking by joining
an economic
grouping?
i13l
10 (a) What, is balance of trade?
t5]
(b) What is a current balance?
t5]
(c) Explain the measures a country may take in order
to increase its foreign
exchange eamings.
t15]

2283/2 N2009