PRESIDENT’S OFFICE

FORM SIX PRE MOCK JOINT EXAMINATION

IRINGA, NJOMBE AND MBEYA

151/1                     ECONOMICS 1

TIME: 3:00 HOURS                                    5th October 2020

INSTRUCTIONS;

1. This paper consist of section A, B and C with total of eighty (8) questions.
2. Answer all questions in section A and any two (2) n questions in EACH of the section B and C.
3. Section A carries twenty (20) marks and section B and C carries forty (40) marks each
4. Non- programmable calculator may be used.
5. All un authorized materials are not allowed in the examination rooms.

SECTION A (20 Marks)

Answer all questions in this section

1. Highlight the key elements of reform program showing that Tanzania is in a period of transition to market economy.
2. Identify five criteria that used to distinguish various economic systems.

SECTION B (40 Marks)

Answer two (2) questions from this section.

3. a) Complete the following table
 No. of workers Total product Marginal product Average product 1. 8 2. 12 3. 16 4. 12 5. 7 6. 5 7. 0 8. -4

b) Draw hypothetical Total product (TP), Average product (AP) and Marginal product (MP) curves and indicate the three stages of production.

c) State five reasons for minimum wage legislation in your country.

4. a) Given the following individual demand equations;

Qd1= Qd2= Qd3 =550 – 2.5p

Where, Qd = Quantity demanded

P = Price measured in Tsh per economies book.

Required;

1. Derive the market demand for economics book.
2. How many more economics books will be bought for each price reduction?
3. If there are 900 economics books in total, what price should be charged to sell the entire collection?
4. Sketch the market demand curve.

b) With illustrations where necessary, explain the following;

i) How would an increase in price of tea affect the price of sugar?

ii) How would an increase in the price of coffee affect the supply of tea?

iii) Explain three main characteristics of Geffen goods.

1. If the demand curve of the firm is P=200 – 0.2Q while cost function is TC = 100Q + 6,000, then compute;
1. Level of output where the firm maximizes profit.
2. AR, AFC, AVC and profit.
3. Under what market structure is a firm operating?
4. If the government imposes a high tax on the commodity, what will be the reaction of the consumers, producers and the government revenue?

SECTION C (40 Marks)

Answer two (2) questions from this section

1. a) State five reasons to why an increase in money supply may not necessarily lead to inflation.

b) Analyze five measures which can be taken to reduce the rate of inflation in our economy.

7. a) “The study of population is of great importance to different professionals.” Discuss this quotation focusing on your side as an economist. Give five points.

b) Outline five procedures or steps of privatization process.

8. a) Analyze five causes of voluntary unemployment.

b) Full employment is regarded to be a myth. Giving five reasons comment on this statement.