151/1-Mock Examination 2022

PRESIDENT’S OFFICE
REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT
ADVANCED CERTIFICATE OF SECONDARY EDUCATION EXAMINATION
MOCK EXAMINATION SOUTHERN ZONE
(MTWARA AND LINDI)

151/1 ECONOMICS 1
(For Both School and Private Candidates)

Time: 3 Hours Monday, 31st January, 2022 a.m.

Instructions

1. This paper consists of Sections A, B and C with a total of Eight (8) questions.
2. Answer all questions in section A and two (2) questions from each of sections B
and C.
3. Section A carries twenty (20) marks and sections B and C carries forty (40) marks
each.
4. Non programable calculator may be used.
5. All communication devices and any unauthorized materials are not allowed in the
examination room.
6. Write your Examination Number on every page of your answer booklet(s).

This paper consists of two printed pages

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151/1-Mock Examination 2022

SECTION A (20 marks)

Answer all questions in this section.

1. Discuss five (5) roles of the government in mixed economic system.

2. Explain five (5) features of labour as a factor of production.

SECTION B (40 marks)

Answer two (2) questions in this section.

3. (a) Given the price and quantity equation 4P = 3b − Qd and Qs = 12P − 12

(i) Determine equilibrium price and quantity
(ii) If the price of 5Tsh is imposed, state whether shortage or surplus and
calculate the amount.
(iii) Draw the diagram to illustrate the information above in 3(a) (i) and (ii).
(iv) Calculate the elasticity of supply at the equilibrium.
(v) Calculate Price elasticity of demand when price change from P = 1 to the
equilibrium.
(b) Explain five (5) advantage of price mechanism.
4. (a) Identify two methods that used to determine equilibrium of any market.
(b) Explain why economic activities or business activity in a country is not
stable? Provide five (5) points.
5. With the aid of diagrams, explain the causes of cost push and demand pull
inflation. Provide three (3) points each.

SECTION C (40 marks)

Answer two (2) questions in this section.

6. The interaction of Economic activities and environment due to actions of

producers and consumers affect the third part. Justify by providing six (6)
economic importance of this statement.
7. Examine four (4) assumptions of Malthusian theory of population and device five
(5) measures that may be taken to avoid the economy to move in population trap.
8. “The main objective of a firm is to make profit” With examples describe six major
variables for the location of any industry.

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