INSTITUTE OF ACCOUNTANCY ARUSHA

ELEMENTS OF ECONOMICS
ODA & ODIRM GROUP ASSIGNMENT

General Instructions:

1. Font = Times New Roman

2. Font size = 12 on text, 14 on Headings

3. Line Spacing = 1.5

4. Text Alignment = Justified on text, Center on headings

5. Paper size = A4 Maximum of 10 pages

6. Margins = Normal

7. Referencing style = Harvard

Specific Instructions:

i. This is a Group assignment that is designed to encourage total (10) member

participation.
ii. Plagiarism, copy paste work, Wikipedia extracts, and the like will not be
tolerated.
iii. Be clear and specific in your work, there is no need to use many words unless
you are trying to hide something.
iv. Submit a hard copy of your work.
v. Prepare PowerPoint slide maximum of (20 slide) for presentation.
vi. The deadline of this assignment will be on 29thMAY 2023 at exactly 12:00 PM
vii. Assignments submitted later than the set deadline will not be marked no
received.
 Question one

Discuss the three approaches of measuring national income? Show that

these three approaches give identical result.

Question two

Evaluate the benefits and challenges of Tanzania's participation in regional trade

agreements, such as the East African Community (EAC) or the Southern African
Development Community (SADC). Assess how these agreements have influenced the
country's international trade patterns and economic development.

Question three

Suppose demand for good A is given by QdA  50010PA  2PB  0.70I where PA
is the price of good A, PB is the price of some other good B, and I is income.
Assume that PA is currently $10, PB is currently $5, and I is currently $100.

i. Calculate quantity demand for good A.

ii. What is the elasticity of demand for good A with respect to the price of good A
at the current situation? Include the interpretation of your answer.
iii. What is the cross-price elasticity of the demand for good A with respect to the
price of good B at the current situation?
iv. What is the income elasticity of demand for good A at the current situation?
Include the interpretation of your answer