P220/2

ECONOMICS
Paper 2
APRIL/MAY, 2023
3hours

QUESTLYFT EXAMINATIONS

Uganda Advanced Certificate of Education

ECONOMICS

Paper 2

3 hours

INSTRUCTIONS:
Answer Five Questions in All.
Section A is Compulsory. Answers to questions in this Section Should be concise.
Answer four questions in section B.
All questions in section B carry equal marks
Credit will be given for the use of relevant diagrams and illustrations.

SECTION A: (20 MARKS)

1. a (i) Define effective demand. (1mark)
(ii) Mention any three determinants of effective demand in your country (3marks)
b (i) Distinguish between horizontal and vertical integration of firms (2marks)
(ii) Mention any two reasons for horizontal merging of firms in your country (2marks)
c Mention any four features of your country’s economy (4marks)
d (i) What is population explosion? (1mark)

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(ii) Give any three causes of population explosion in Uganda (3marks)

e State four major development goals in your country (4marks)

SECTION B: (80 MARKS)

2. a) Distinguish between industrial inertia and localization of industries (4marks)
b) Assess the impact of localization of industries in your country (16marks)
3. a) Why does your country compile national income statistics? (10marks)
b) Examine the problems encountered by your country in collecting national
income data. (10 marks)
4. a) Explain the Malthusian population theory ? (6marks)
b) How relevant is the Malthusian theory to the economy of your country (14marks)
5. a) Examine the causes of inflation in your country (8marks)
b) Discuss the impact of inflation to the economy of your country (12marks)
6. a) Examine the prerequisites for successful economic planning (10 marks)
b) Discuss the limitations to successful economic planning in your country (10marks)
7. a) Explain why your country imposes taxes. (10marks)
b) Examine the problems faced by tax authorities in Uganda. (10marks)

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