ZIMBABWE SCHOOL EXAMINATIONS COUNCIL

General Certificate of Education Ordinary Level

ECONOMICS 2283/2
PAPER 2 Essays

Morning 2 hours
Friday 14 NOVEMBER 2003
Additional materials:
Answer paper
00002573

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.

Write your answers on the separate answer paper provided.

If you use more than one sheet of paper, fasten the sheets together.

INFORMATION FOR CANDIDATES

The number of marks is given in brackets [ ]at the end of each question or part question.
You are permitted to draw on material from your own country.

and 1 blank page.

Ihis question paper consists of 3 printed pages
Examinations Council, N2003.
Copyright: Zimbabwe School
 2

(a) Explain the basic economic problem. [10

(b) Describe how the questions on 'what, for who and how to
are answered in a mixed
produce
economy. [15
2 (a) Explain the following types of mergers:

) vertical integration, 6]
(i) horizontal integration. 31
(b) Explain the possible benefits of horizontal integration to consumers.

(C) Why may government seek to control mergers? [7

3 (a) With reference to the theory of the firm, explain the relationship between

marginal cost and average cost, [6)

i) total cost and fixed cost. [61
(b) With the aid of diagrams, compare the long-run equilibrium position of a
firm in perfect competition and that of a fim in monopoly. [13]
4 (a) What are the functions of

) trade unions, [61

(i) employers' associations? [41
(b) What may cause differences in wages? [15]

5 (a) Describe any four functions of money. [81

(b) How does inflation affect each of the functions of money stated in (a)? [17]

Privatisation of public corporations gathered momentum in the early 1990s in

Southern Africa and Eastern Europe.

(a) Describe the features of a public corporation.

(b) What is privatisation?

(c) Discuss the economic benefits governments hope to achieve by privatising

public corporations. [17]
2283/2 N2003
 3

(a) With reference to population structure, what is

) age distribution,

i) geographical distribution,
(ii) occupational distribution?

(b) Identify and explain the economic problems associated with the population
structure of developing countries.
[16]
8 (a) In terms of government price controls, explain the following;
() minimum prices,

(i) maximum prices.

[8]
(b) With the aid of diagrams, explain the likely effects of government imposing
a maximum price on goods and services,

(i) a minimum wage on the labour market.

17
9 (a) With reference to National Income Data, define the
following terms
Gross Domestic Product,

i) Gross National Product,

(ii) Net National Product. (91
()What are the problems ofusing National Income Statistics, such as GNP,
to
compare living standards? 16
10 (a) Explain the following terms as used in intermational trade:
) fixed exchange rates,
(i) floating exchange rates. [8]
(b) Why and how may a government restrict imports?
[17]

81nIn003