NAME: ……………………………………………………….STREAM ……. INDEX NO ………

KING’S COLLEGE – BUDDO

UGANDA ADVANCED CERTIFICATE OF EDUCATION

INTERNAL MOCKS EXAMINATION 2020

ECONOMICS P220/2

PAPER TWO

TIME: 3 HOURS

INSTRUCTIONS:

  • Answer five questions in all
  • Section A is compulsory, Answers to this question should be concise
  • Answer any four questions in section B
  • All questions in section B carry equal marks
  • Any additional question(s) attempted will not be marked.
  • Credit will be given for use of relevant diagrams

SECTION A (20 MARKS)

  1. a(i) Differentiate between conglomerate and horizontal amalgamation of firms.                                        (02 marks)

    ii) Give two merits of conglomerate and amalgamation of firms in Uganda.                                    (02 marks)

    b(i) What is meant by the term price mechanism?        (01 mark)

    (ii) State any three reasons for the interference in the price mechanism in Uganda.                                (03 marks)

    c(i) Distinguish between complementary demand and composite demand.

                                            (02 marks)

    (ii) Mention two examples of complementary demand in Uganda.

                                            (02 marks)

    d(i)     Distinguish between hyperinflation and mild inflation.

                                            (02 marks)

    (ii) Give two measures that should be taken to control inflation in Uganda.                                    (02 marks)

    e(i) Define the term “export multiplier”                (01 mark)

    (ii) Given that the current national income is US $ 150 billion, increase in export earnings is US $ 20 billion, and the marginal propensity to save is 20%. Calculate the final level of income.        (03 marks)

    SECTION B (80 MARKS)

    1. a) Distinguish between an increase in demand and increase in quantity demanded.                                    (04 marks)

      b) Account for an increase in demand for a commodity in Uganda.

                                              (16 marks)

    2. a) Why are public enterprises privatized in Uganda?    (10 marks)

      b) Explain the problems that have been encountered in the privatization of public enterprises in Uganda.                    (10 marks)

    3. a) Differentiate between Real National income and nominal National income.                                    (04 marks)

      b) Explain the measures being taken to increase the size of Real National income in Uganda.                        (16 marks)

      1. a) Distinguish between voluntary unemployment and involuntary unemployment.                            (04 marks)

      b) Assess the effects of involuntary unemployment in Uganda.

                                              (16 marks)

    4.     a) What are the uses of a government budget in Uganda.(06 marks)

      b) Examine the measures that can be undertaken to minimize budgetary deficits in Uganda.                            (14 marks)

    5. a) Why do prices of agricultural products fluctuate in Uganda?(10 marks)

      b) Discuss the consequences of agricultural price fluctuations in Uganda.                                    (10 marks)

END

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