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ZIMBABWE SCHOOL EXAMINATIONS COUNCIL

General Certificate of Education Ordinary Level

ECONOMICS 228311
PAPER 1 Multiple Choice

NOYEMBER 2015 SESSION t hour 15 minutes

Additional materials:
Multiple choice answer sheet
Soft clean eraser
Soft pencil (type B or HB is recommended)

TIME t hour 15 minutes

INSTRUCTIONS TO CANDIDATES

Do not open this booklet until you are told to do so.

Write your name, Centre number and candidate number on the answer sheet in the spaces
provided unless this has already been done for you.

There are forfy questions in this paper. Answer all questions. For each question there are four
possible answers, A, B, C and D. Choose the one you consider corect and record your choice in
soft pencil on the separate answer sheet provided.

Read very carefully the instructions on the answer sheet.

INFORMATION FOR CANDIDATES

Each correct answer will score one mark. A mark will not be deducted for a wrong answer.
Any rough working should be done in this booklet.

This question paper consists of 12 printed pages.

Copyright: Zimbabwe School Examinations Council, N2015.

EZJ\lSEC N2015 [Turn over
 2

S-;:lr,:l:i::;ttsislimitedrelativetohumanneedsandwants'Whatnarneisgivento
i-a:-- ; :-.-;"!'J'

.\ si:r':i3Se of s'ants and needs

B erhausted resources
C scarcitl'ofresources
cost
; suppl1: involving no opportuniqv
a decision is
definition of opportunity cost, what is sacrificed when
1 ..\:c.]rding to the
!.:-\! r1 .

A next best alternative

B an identical alternative
C anY Possible alternative
D thi liast valuable altemative
possibility frontier'
The diagram shows a production

Good Y

oD

Good X

Which point, A, B, C or D is unattainable?

2283/l N2015
 3

4 What name is given to an economic system where the means of production are o\\ie.l
both private individuals and the state?

A command
B mixed
C socialism
D free market

) Land, labour, capital and enterprise are also known as

A raw materials.
B opportunity cost.
C economic resources.
D free goods.

The table below shows a firm in the short mn.

Factor Inout Output

1 100
) 300
3 600
4 900
5 1 100

6 120A

Between which factor inputs would increasing returns to scale be found?

A 5and6
B 4and6
C 3and4
D l and3

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 4

The table below shows hou'a ftrm's total cost rises with changes in output'

Output (units) Total cost (S)

- , ,:i'
0 30 000 ,, .,-''11'--
40 000 ,1: .. "
1000
50 000 .lf. f
"/ :'.j:
3000
5000 60 000

what is the average fixed cost (A.F.C.) of producing 5000 units?

A$4
B$s
c$6
D $10

8 Seasonal unemployment may result from

A introduction of new machinery.

B lack of information about the availability ofjobs'
C one choosing not to go to tl'ork.
D variations in climatic and u'eather conditions'

9 ln20l2, Zimbabwecarried out a population census. What was the reason for conducting
that exercise?

A to determine the production possibility cun'e

B to estimate future demand
C to establish the rate of production
D to alter the population sex distribution

10 Public corporations

A axe flm by elected boards ofdirectors.

B allocate dividends to shareholders.
C are formed by an act of parliament.
D raise capital through the sale of shares.

2283/1 N2015
 5

11 The table below shows quantities of a commodity demanded and supplied at the given
prices.

Ouantiw demanded Ouantitv supplied Prices $

13 20 10
t6 t6 8
18 l4 6
)) 12 4
-
What is the equilibrium price?

A $10
B$8
c$6
D$4
Which of the following graphs A, B, C or D shows a perfectly inelastic demand curve?

AB

Quantity

auantity auatrtity

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 6

13 What is income elasticity of demand?

A the responsiveness of price to change in lhe household's income

B the responsiveness of quantity demanded to a change in the household's income
C the responsiveness of quantity demanded to a change in the price
D the resionsiveness of quantity demanded to a change in the prices of related goods

14 In the diagram below, supply has shifted frorl So to Sr'

O Quanti
Quantity

What may have caused the movement?

A outdated technologies
B introduction of excise dutY
C introduction of subsidies
D increase in the cost of production

15 Who benefits most from the introduction of maximum price?

A the government
B firms
C consumers
D investors

16 What is the negative effect of setting a maximum price?

A more goods will be suPPlied

B cost of production will be reduced
C demand will be reduced
D emergence of black markets

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17 A profit * maximising firm will equate

A average cost to average revenue.

B marginal cost to marginal revenue.
C ayerage cost to marginal revenue.
D total costto total revenue.

18 The diagrams below show different market structures in different situations.

o o
o o
o
!C) k
o
>o
o o
U C)
\,:*

Output

o o
3
c
o
tr
o
6) o
L
k
rh
o (.)
Q

Which diagram A, B, C or D shorvs a monopolistic competition in the long run?

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 8
The following are charaoteristics of good money except
t9
A scarcitY.
B durabilitY.
C stable in value.
D store of wealth.

20 Barter tade does not involve

A of goods'
easY transPortation
B problemofstorageofgoods'
C adouble coincidenoe of wants'
D some goods which are indivisible'

a country, calculated atthe end of each

2l The table below shows the retail price index in
yeat,

Year Retail Price Iqdex

2010 100
201 1 110
2012 115
2013 120

Which year had the highest rate of inflation?

A 2010
B 2011
c 2012
D 2013

disposable income?
22 which type of inflation may be caused by an increase in a household's
A structural
B cost-Push
C demand-Pull
D imPorted

23 National income can be calculated using

A export and imPortvolumes'

B elastioitY of demand.
C the national income accounting method'
D the exPendinre method.

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 9
24 The table below shows three living standard indicators.

Country Life expectancy at birth G.N.P per Adult literacy

head %
A 45 109 65
B 45 90 35
C 50 29s 40
D 55 340 40

Which country A, B, C or D is likely to havc the lowest standard of living?

25 The following factors cause inequalities in wages between and within occupations except

A skills required by the job.

B educational qualifications.
C experience.
D religious beliefs.

26 What is the function of the Cenhal Bank of a country?

A printing and issuing notes and coins

B offering Automated Teller Machines (A.T.Ms)
C giving mortgaged loans to the public
D giving standing order facilities to the public

27 Resources in a command economy are allocated by

A the Central Planning Board.

B the market forces of demand and supply.
C political affiliation.
D the profit motive.

28 What is the advantage of privatisation to the consumer?

A High quality goods are produced.

B Low quality goods are produced.
C It creates monopoly power.
D More money will be allocated by the government to the company.

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 t0
29 A public good
A is a good whose production cost is zero'
B is non-exclusionary in consumption'
C has no aPPortunitY cost.
D can oniY be enjoYed bY the Poor'

30 The function of a naarketing board is to

A charge taxes on producers' output'

B fix excise dutY.
C dete:iuii-ie exchange rates.
D fix producerPrices.

3l Below is a ta'nle of the taxation system of a country'

Ta:i Bancl (income $) Tax"/o

5001 + 20

4001 - 5000 25

3C01 - 4000 30

2001 - 3000 35

1*ryl * 2000 40

Below- 1000 45

The toiatiot: s'i i'.cltt is

A regressivc.
B progresslve.
C propcliional.
D indirect.

32 A good tax systcur shculd

A lead totrrcme incqualities.

B raise gi;lerruneut fe\renue.
C bi cr,l,i;;iicttt.
D be castil'to administer'

2283trN2015
 11

of a developing country?
33 From the following, which is a characteristic

A high literacy rate

B high spending in entertainment
C a small average familY size
D a small percentage of very old people
had
the table below. It is asstrmecl in 2003, Zimbabwe
Questions 34 and 35 are based on
the following foreign trade figures'

z$ Bitrii,;n

Goods sold to other countries !(

ZUUU

1600
G"ods b"ught from other countries i",
ffie rj i000

Tourists from Zimbabwe !/

4Ll0

800
B."k rg *rvices provided to companies
in Zimbabwe 6|
600
Transport seryices to foreigners

34 What was the balance of trade?

A $400 billion
B $2 200 billion
C $1 200 billion
i) -$ 400 billion
35 What was the balance of PaYments?

A $1 400 billion
B $4 400 billion
C $3 800 billion
D $3 000 billion

What is the advantage of international trade to a country

like Zimbabrve?
36

A shortage ofgoods and services

B raises the standard of living
C reduces dumPing of goods
D adoPtion of foreign cultures

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 12

37 A limit on the number of goods to be imported into a country is called

A an embargo.
B a sanction.
C aquota.
D an import duty.

38 Which international institution specialises in funding long-term projects?

A Intemational Monetary Fund

B European Union
C African Union
D World Bank

39 Which set of countries are members of the Southem Africa Development Community
(SADCX

A Angola, Zimbabwe and Lesotho

B Angola, Zimbabwe and Libya
C Malawi, Angola and China
D Malawi, Swaziland and Ivory Coast

40 What name is given to a situation where a country is allowed more years to repay its
national debt?

A debt allowance.
B debt crisis.
C debt accumulation.
D debtrelief.

2283fiN2015
 ZIMBABWE SCHOOL EXAMINATIONS COUNCIL
GeneralCertificateofEducationAdvancedLevel

ECONOMICS 4050/1
PAPER 1 MultiPle Choice

NOVEMBER 2018 SESSION t hour 30 minutes

Additional materials:
Multiple Choice answer shcet
Soft eraser
Soft pencit (type B or HB is recommended)

TIME I hour 30 minutes

INSTRUCTIONS TO CANDIDATES

Do not open this booklet until you are told to do so'

sheet in the spaces provided
Write your name, Centre number and candidate number on the answel
unless this has already been done for you'

There are forty questions in this paper. Answer all questions.

For each question there are four
and record your choice in
possible answers, A, B, C anct D. ihoor" the one you consider comect
soft pencil on the separate answer sheet'

Read very carefully the instructions on the answer sheet'

INFORMATION FOR CANDIDATES

will score one mark. A mark wili not be deducted for a wrong answer'
Each correct answer

Any rough working should be done in this booklet'

Printed Pages and 3 blank Pages'

Copyright: Zimbabwe School Examinations Council' N2018'

[Turn over
 2

In the study of economics, resources are also known as

A raw materials.
B profit returns.
C factors of production.
D workers and machines.

The opporlunity cost of a good is

A what it can be sold for.

B the cost of the good.
C how much it is worth to its ormer.
D the next best alternative foregone when a choice is made.

T'he basic economic problem faced by all economies is

A rising prices.
B unemployment.
C scarcity ofresources.
D low economic growth.
4 The diagram below shows a Production Possibility curve (ppc) of a nation.

Good X

Which point A, B, C or D may this economy produce at as a result of improved technology?

The effects of AIDS include a depleted young and middle-aged population.

What effect does this have on any economy?

A Increased birth rate.

B Increased fertility rate.
C Increased per capita income.
D Increased dependence ratio.
 3
6 countries encourage the establishment of growth points so as to

A decentralise industry.
B centralise industry.
C establish ancillary industries.
D increase geographical mobility of labour.

7 what type of pr:oduction has the folrowing characteristics?

For sale
Highly specialised
Highly productive

A direct
B indirect
C primary
D tertiary

8 Which of the following is an advantage to a country of hosting a multinational

company?

A They may exploit cheap labour.

B They may switch profits between countries.
C They may have advanced technical knowledge.
D They may force other firms out of business.

9 which of the following best describes a public Limited company?

A A company owned by its workers.

B A company owned by the government.
C A company that is listed on the stock exchange.
D A company that has factories and offices all over the world.

10 The table below shows the interaction between quantity demanded and quantity
supplied for
a given market.

Price $ Quantity demanded Quantity supplied

ke ke
5 110 240
4 120 200
J 150 150
2 200 90

What is the equilibrium price in this market?

A2
B3
C4
D5

4050/t Nrn r r
 4
price elasticity
to $ 1,10 caused supply
to extend by Z7o/o,then the
11 Ifa risein price fiom $ 1,00
of supplY would be equal to

A 0.27.
B 0.31.
c 2.70.
D 3.70.
greatest excess of demand?
the diagram below will be the
12 At which point A, B, C or D in

Llu'
o
for bread'
'l'he diagratn belo.n shows the demanrl arrd suppiy curves
13
Price

What could have caused the shift

in supply from Sr to Sz?

A Introduction of an indirect tax'

r,- nf nhtainins the floUr.
 5

14 The diagram below shows a firm in long-run equilibriurn.

Price

o output
The firm is operating in a market structure called

A monopoly'.
B oligopoly.
C perfect competition.
D monopolistic competition.

15 Which characteristic of money.upholds the value of money?

A dii,isibility
B durability
C ponability
D scarcity

t6 What indicates that a country has inflation?

A rise in

A retail price index

B real value ofgoods
C real value of income
D general standard of living

l7 Which of the following could be classified as an invisible export to Zimbabwe?

A Tanker of fuel from Angola

B Loan of money to China
C Bottles of wine from Chile
D Japanese tourist's spending
 6

18 A country's gross domestic product figures for a year are shown belorv.

$ million
Gross domestic product at market prices = 500
Gross domestic product at factor cost = 450
Gross national product at market prices = 300
Gross national product at factorcost = 250
Net national product = 220

What is the country's depreciation value?

A $30 million
B $50 million
C $100 million
D $200 million

19 Which of the following is a reward for organisation?

A Rent
B Interest
C Wage
D Profit

20 How can a country like Zimbabwe reduce its balance of payment deficit?

A abolish the policy of protectionism

B awarding export incentive to its local firms
C encourage consumption of foreign products by local consumers
D increase rate of purchasing raw materials outside its borders

2l ldentif.v'a fixed cost belou,.

A wages
B water charges
C interest on loan
D charges on electricity consumption

22 Which of the following makes Gross National Product (GNP) a poor measure of comparing
the standard ofliving between countries?

A It can show output of the country's citizens.

B It can show per capita output.
C It can be adjusted for inflation level.
D It does not show income distribution among citizens.
 7
23 The point where the forces of demand
and supply are at barance, is termed

A excess demand point.

B excess supply point.
C equilibrium point.
D demand-deficient point.

24 A country can reduce its inflation rate by

increasing the importation of raw materials.

1 imposing minimum wages for all its workers.
I increasing taxation o, *rg., and salaries.
I
D encouraging trade unions io bargain for higher
wages.

25 Buying and selling of goods and services

among rocar peopre is cailed

A domestic trade.
B bilateral trade.
C regional trade.
D balance of trade.

26 Problems likely to be caused by a Monopory

courd be reduced through

A purting patent right.

tighteningcompanyregistrationrequirements.
I gazetting laws protecting sole p.ouid.,
9
D subsidising nerv firms in the iniustry.
of a good/service.

27 Highly developed nations are characterised

by

A low literacv rate.

B low death iate.
C low infrastructural development.
D low employment rate.

28 Goods whose demand decreases with an

increase in consumer income are

A normal goods.
B inferior goods.
C public goods.
D merit goods.

29 Countries reduce unemployment rate through

A increasing interest rates.

B^ enforcing community ownership.
reducing import duties on goods and serv.ices.
ID imposing high company taies.
 8

30 Which activity is found in primary production?

A baking
B fishing
C hairdressing
D shipbuilding

31 Which of the follou,ing solves worker absenteeism?

A reducing wages and salaries

B assigning more duties to workers
C workers working beyond their normal time
D aw'arding non-financial and financial benefits

32 Why might a government impose tariffs?

A to encourage importation
B to improve bilateral relationships
C to protect their manufacturing industries
D to attract more investment from abroad

33 Banning the trading of materials such as hard drugs and pomography is a typical feature of
A tariffs.
B embargo.
C quotas.
D exchange controls.

34 An industrial action where workers refuse to rvork more than their normal time of work is
called

A work to rule.
B go slow.
C sit in.
D picketing.

35 which of the following reduces problems of planned economy?

A Rationing
B Privatisation.
C Nationalisation.
D Centralisation.

36 After an introduction of a new machinery at a certain firm, 100 workers lost their jobs. This
is an example of

A technological unemployment.
B seasonal unemployment.
C regional unemployment.
D frictional unernployment.
 9

wearing away?
37 Which feature of money enables it to last long before

A DurabilitY.
B PortabilitY.
C DivisibilitY.
D AccePtabilitY.

3g which move is an adjustment of market prices for inflation?

A G.D'P deflator'
B G.D'P Per caPita'
C Terms of trade'
D Consumer Price Index'

39 Invisible export - invisible import = X'

X rePresents

A current balance.
B caPital balance'
C invisible trade'
D visible trade.

40ThetablebelowshowsvaiueofConsumerPricelndex,

Base year 19E0: 100'

Year CPI
1981 t20
t982 140
1983 160
1984 180

What is the rate of inflation from 1980 to 1981?

A 20%
B 40%
c 60%
D 120%

t^-^/i rran 1 0