PRESIDENT’S    OFFICE

REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT AUTHORITY

HAI DAY, HARAMBEE, MACHAME GIRLS’, MKUU AND WARI SEC. SCHOOLS

FORM SIX PRE-MOCK JOINT EXAMINATION

    151/1 ECONOMICS 1

Time:3Hours     5^th October 2020 p.m.

Instructions

• This paper consists section A, B and C with a total of eight (8) questions.
  
• Attempt all questions in section A and two (2) questions from each section B and C.
  
• Section A carries twenty (20) marks and section B and C carry forty (40) marks each.
  
• Non programmable calculator are allowed in the examination room
  
• Write your Examination Number on every page of your answer booklet(s)
  

SECTION A (20 MARKS)

Answer all questions in this section

1. Distinguish a command economy from a free market economy. (five (5) points)
2. Explain five (5) determinants of scale of production

    

   SECTION B (40 MARKS)
   

   Answer any two questions in this section
   

3. (a) If the demand equation is expressed as

   where

   1. Calculate price elasticity of demand when
   2. Interpret your economic result above in a (i)

   (b) Why the supply curve slopes upwards as it goes from the left to the right? (Provide five (5) points)

4. (a) Given

   Where TC = Total cost

   TR = Total revenue

   q = quantity of output

   Calculate

   1. Total variable cost
   2. Total fixed cost
   3. Marginal cost function
   4. Level of output which firms maximizes profit

   (b) With illustration explain four possible situations in the equilibrium of a firm under perfect competition in the short.

5. (a) “The commodities which are used as money must have certain qualities to perform the functions of money more appropriately” Argue for this statement using five (5) points.

   (b) Discuss five (5) fiscal ant – inflationary measures

    

   SECTION C (40 MARKS)
   

   Answer any two questions in this section
   

6. (a) Examine four (4) causes of unemployment in developing countries.

   (b) Discuss four (4) approaches for an internalization of externalities.

7. Give eight (8) points showing the positive effects of population increase to the economy.
8. (a) Explain on how privatization in Tanzania has resulted into deteriorating welfare of people (provide four (4) points)

   (b) Explain four (4) phases of trade cycle.