{"id":54,"date":"2023-04-01T12:21:30","date_gmt":"2023-04-01T12:21:30","guid":{"rendered":"http:\/\/localhost\/solvefor2\/?p=54"},"modified":"2023-04-01T12:43:51","modified_gmt":"2023-04-01T12:43:51","slug":"uace-economics-paper-1-mock-examinations-st-marys-kitende","status":"publish","type":"post","link":"https:\/\/edu.co.tz\/notes\/uace-economics-paper-1-mock-examinations-st-marys-kitende\/","title":{"rendered":"UACE Economics Paper 1 MOCK EXAMINATIONS ST. MARYS\u2019 KITENDE"},"content":{"rendered":"<p><span style=\"font-family:Bookman Old Style; font-size:12pt\"><strong>P220\/1<br \/>\n<\/strong><\/span><\/p>\n<p><span style=\"font-family:Bookman Old Style; font-size:12pt\"><strong>Economics<br \/>\n<\/strong><\/span><\/p>\n<p><span style=\"font-family:Bookman Old Style; font-size:12pt\"><strong>Paper 1<br \/>\n<\/strong><\/span><\/p>\n<p><span style=\"font-family:Bookman Old Style; font-size:12pt\"><strong>Nov 2020<br \/>\n<\/strong><\/span><\/p>\n<p><span style=\"font-family:Bookman Old Style; font-size:12pt\"><strong>3 hours<br \/>\n<\/strong><\/span><\/p>\n<p>\n\u00a0<\/p>\n<p style=\"text-align: center\">\n\u00a0<\/p>\n<p style=\"text-align: center\"><span style=\"font-family:Bookman Old Style; font-size:13pt\"><strong>ST. MARYS&#8217; KITENDE<br \/>\n<\/strong><\/span><\/p>\n<p style=\"text-align: center\"><span style=\"font-family:Bookman Old Style; font-size:13pt\"><strong><em>Uganda Advanced Certificate Of Education<br \/>\n<\/em><\/strong><\/span><\/p>\n<p style=\"text-align: center\"><span style=\"font-family:Bookman Old Style; font-size:13pt\"><strong>RESOURCEFUL MOCK EXAMINATIONS 2020<br \/>\n<\/strong><\/span><\/p>\n<p style=\"text-align: center\"><span style=\"font-family:Bookman Old Style; font-size:13pt\"><strong>ECONOMICS<br \/>\n<\/strong><\/span><\/p>\n<p style=\"text-align: center\"><span style=\"font-family:Bookman Old Style; font-size:13pt\"><strong>PAPER 1<br \/>\n<\/strong><\/span><\/p>\n<p style=\"text-align: center\"><span style=\"font-family:Bookman Old Style; font-size:13pt\"><strong>Time: 3 HOURS<br \/>\n<\/strong><\/span><\/p>\n<p style=\"text-align: center\">\n\u00a0<\/p>\n<p><span style=\"font-family:Bookman Old Style; font-size:13pt\"><strong><em>Instructions<\/em><\/strong>:<br \/>\n<\/span><\/p>\n<ul>\n<li><span style=\"font-family:Bookman Old Style; font-size:13pt\"><em>Answer <strong>five<\/strong> questions only.<br \/>\n<\/em><\/span><\/li>\n<li><span style=\"font-family:Bookman Old Style; font-size:13pt\"><em>Section <strong>A<\/strong> is <strong>compulsory<\/strong>. Answers to this section should be precise.<br \/>\n<\/em><\/span><\/li>\n<li><span style=\"font-family:Bookman Old Style; font-size:13pt\"><em>Answer <strong>four<\/strong> (4) questions from section B.<br \/>\n<\/em><\/span><\/li>\n<li><span style=\"font-family:Bookman Old Style; font-size:13pt\"><em><strong>All<\/strong> questions in section B carry <strong>equal<\/strong> marks.<br \/>\n<\/em><\/span><\/li>\n<li><span style=\"font-family:Bookman Old Style; font-size:13pt\"><em>Credit will be given for use of <strong>relevant<\/strong> diagrams.<br \/>\n<\/em><\/span><\/li>\n<\/ul>\n<p>\n\u00a0<\/p>\n<p style=\"text-align: center\"><span style=\"font-family:Bookman Old Style; font-size:13pt\">For Examiner&#8217;s use only.<br \/>\n<\/span><\/p>\n<p>\n\u00a0<\/p>\n<div style=\"margin-left: 153pt\">\n<table style=\"border-collapse:collapse\" border=\"0\">\n<colgroup>\n<col style=\"width:156px\"\/>\n<col style=\"width:144px\"\/><\/colgroup>\n<tbody valign=\"top\">\n<tr>\n<td style=\"padding-left: 7px; padding-right: 7px; border-top:  solid 0.5pt; border-left:  solid 0.5pt; border-bottom:  solid 0.5pt; border-right:  solid 0.5pt\">\n<p><span style=\"font-family:Bookman Old Style; font-size:13pt\"><strong>QUESTION <\/strong><\/span><\/p>\n<\/td>\n<td style=\"padding-left: 7px; padding-right: 7px; border-top:  solid 0.5pt; border-left:  none; border-bottom:  solid 0.5pt; border-right:  solid 0.5pt\">\n<p><span style=\"font-family:Bookman Old Style; font-size:13pt\"><strong>MARKS <\/strong><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"padding-left: 7px; padding-right: 7px; border-top:  none; border-left:  solid 0.5pt; border-bottom:  solid 0.5pt; border-right:  solid 0.5pt\">\n<p><span style=\"font-family:Bookman Old Style; font-size:13pt\"><strong>SECTION A<\/strong><\/span><\/p>\n<\/td>\n<td style=\"padding-left: 7px; padding-right: 7px; border-top:  none; border-left:  none; border-bottom:  solid 0.5pt; border-right:  solid 0.5pt\">\u00a0<\/td>\n<\/tr>\n<tr>\n<td style=\"padding-left: 7px; padding-right: 7px; border-top:  none; border-left:  solid 0.5pt; border-bottom:  solid 0.5pt; border-right:  solid 0.5pt\">\u00a0<\/td>\n<td style=\"padding-left: 7px; padding-right: 7px; border-top:  none; border-left:  none; border-bottom:  solid 0.5pt; border-right:  solid 0.5pt\">\u00a0<\/td>\n<\/tr>\n<tr>\n<td style=\"padding-left: 7px; padding-right: 7px; border-top:  none; border-left:  solid 0.5pt; border-bottom:  solid 0.5pt; border-right:  solid 0.5pt\">\u00a0<\/td>\n<td style=\"padding-left: 7px; padding-right: 7px; border-top:  none; border-left:  none; border-bottom:  solid 0.5pt; border-right:  solid 0.5pt\">\u00a0<\/td>\n<\/tr>\n<tr>\n<td style=\"padding-left: 7px; padding-right: 7px; border-top:  none; border-left:  solid 0.5pt; border-bottom:  solid 0.5pt; border-right:  solid 0.5pt\">\u00a0<\/td>\n<td style=\"padding-left: 7px; padding-right: 7px; border-top:  none; border-left:  none; border-bottom:  solid 0.5pt; border-right:  solid 0.5pt\">\u00a0<\/td>\n<\/tr>\n<tr>\n<td style=\"padding-left: 7px; padding-right: 7px; border-top:  none; border-left:  solid 0.5pt; border-bottom:  solid 0.5pt; border-right:  solid 0.5pt\">\u00a0<\/td>\n<td style=\"padding-left: 7px; padding-right: 7px; border-top:  none; border-left:  none; border-bottom:  solid 0.5pt; border-right:  solid 0.5pt\">\u00a0<\/td>\n<\/tr>\n<tr>\n<td style=\"padding-left: 7px; padding-right: 7px; border-top:  none; border-left:  solid 0.5pt; border-bottom:  solid 0.5pt; border-right:  solid 0.5pt\">\n<p><span style=\"font-family:Bookman Old Style; font-size:13pt\"><strong>TOTAL <\/strong><\/span><\/p>\n<\/td>\n<td style=\"padding-left: 7px; padding-right: 7px; border-top:  none; border-left:  none; border-bottom:  solid 0.5pt; border-right:  solid 0.5pt\">\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>\n\u00a0<\/p>\n<p>\n\u00a0<\/p>\n<p style=\"text-align: center\"><span style=\"font-family:Bookman Old Style; font-size:13pt\"><strong>SECTION A:  (20 marks)<br \/>\n<\/strong><\/span><\/p>\n<p style=\"text-align: center\"><span style=\"font-family:Bookman Old Style; font-size:13pt\"><em>Answer <strong>all<\/strong> questions from this section<\/em>.<br \/>\n<\/span><\/p>\n<p>\n\u00a0<\/p>\n<p><span style=\"font-family:Bookman Old Style; font-size:13pt\">1. a) i) Distinguish between Normal and Economic profits.\u00a0\u00a0\u00a0\u00a0(2 marks)<br \/>\n<\/span><\/p>\n<p><span style=\"font-family:Bookman Old Style; font-size:13pt\">ii) Give two causes of a decrease in the amount of profits earned by a firm in an economy.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(2 marks)<br \/>\n<\/span><\/p>\n<p>\n\u00a0<\/p>\n<p><span style=\"font-family:Bookman Old Style; font-size:13pt\">b) i) Define the term Investment Multiplier.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(1 mark)<br \/>\n<\/span><\/p>\n<p><span style=\"font-family:Bookman Old Style; font-size:13pt\">ii) Given that the change in national income is shs 450 billion and Marginal propensity to consume is 75%. Calculate the change in investment expenditure.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(3 marks)<br \/>\n<\/span><\/p>\n<p>\n\u00a0<\/p>\n<p><span style=\"font-family:Bookman Old Style; font-size:13pt\">c) i) Define the term Money.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(1 mark)<br \/>\n<\/span><\/p>\n<p><span style=\"font-family:Bookman Old Style; font-size:13pt\">ii) Give three causes of an increase in demand for money.\u00a0\u00a0\u00a0\u00a0(3 marks)<br \/>\n<\/span><\/p>\n<p>\n\u00a0<\/p>\n<p><span style=\"font-family:Bookman Old Style; font-size:13pt\">d) i) Distinguish between suppressed inflation and bottleneck inflation.\u00a0\u00a0\u00a0\u00a0<br \/>\n<\/span><\/p>\n<p><span style=\"font-family:Bookman Old Style; font-size:13pt\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(2 marks)<br \/>\n<\/span><\/p>\n<p><span style=\"font-family:Bookman Old Style; font-size:13pt\">ii) Give two remedies of bottleneck inflation in an economy.\u00a0\u00a0\u00a0\u00a0(2 marks)<br \/>\n<\/span><\/p>\n<p>\n\u00a0<\/p>\n<p><span style=\"font-family:Bookman Old Style; font-size:13pt\">e) i) Distinguish between divestiture and nationalization.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(2 marks)<br \/>\n<\/span><\/p>\n<p><span style=\"font-family:Bookman Old Style; font-size:13pt\">ii) State any two challenges arising from divestiture of public enterprises.<br \/>\n<\/span><\/p>\n<p><span style=\"font-family:Bookman Old Style; font-size:13pt\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(2 marks)<br \/>\n<\/span><\/p>\n<p>\n\u00a0<\/p>\n<p style=\"text-align: center\"><span style=\"font-family:Bookman Old Style; font-size:13pt\"><strong>SECTION B<br \/>\n<\/strong><\/span><\/p>\n<p style=\"text-align: center\"><span style=\"font-family:Bookman Old Style; font-size:13pt\">Answer only <strong><em>four<\/em><\/strong> (4) questions.<br \/>\n<\/span><\/p>\n<p>\n\u00a0<\/p>\n<p><span style=\"font-family:Bookman Old Style; font-size:13pt\">2. a) Explain the role of the price mechanism in the allocation of resources in an economy.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(10 marks)<br \/>\n<\/span><\/p>\n<p>\n\u00a0<\/p>\n<p><span style=\"font-family:Bookman Old Style; font-size:13pt\">b) Explain the steps that can be taken to improve the performance of price mechanism in the allocation of resources in an economy.(10 marks)<br \/>\n<\/span><\/p>\n<p>\n\u00a0<\/p>\n<p>\n\u00a0<\/p>\n<p><span style=\"font-family:Bookman Old Style; font-size:13pt\">3. a) How do firms under perfect competition maximize profits in;<br \/>\n<\/span><\/p>\n<p><span style=\"font-family:Bookman Old Style; font-size:13pt\">i) Short run\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(6 marks)<br \/>\n<\/span><\/p>\n<p><span style=\"font-family:Bookman Old Style; font-size:13pt\">ii) Long run\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(6 marks)<br \/>\n<\/span><\/p>\n<p>\n\u00a0<\/p>\n<p><span style=\"font-family:Bookman Old Style; font-size:13pt\">b) Explain the merits and demerits of perfect competition on an economy.<br \/>\n<\/span><\/p>\n<p><span style=\"font-family:Bookman Old Style; font-size:13pt\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(8 marks)<br \/>\n<\/span><\/p>\n<p>\n\u00a0<\/p>\n<p><span style=\"font-family:Bookman Old Style; font-size:13pt\">4. a) What is meant by under development?\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(4 marks)<br \/>\n<\/span><\/p>\n<p>\n\u00a0<\/p>\n<p><span style=\"font-family:Bookman Old Style; font-size:13pt\">b) Explain the indicators of economic development in developing countries.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(16 marks)<br \/>\n<\/span><\/p>\n<p>\n\u00a0<\/p>\n<p>\n\u00a0<\/p>\n<p><span style=\"font-family:Bookman Old Style; font-size:13pt\">5. a) Explain the procedures followed when computing a weighted consumer price index in an economy.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(8 marks)<br \/>\n<\/span><\/p>\n<p>\n\u00a0<\/p>\n<p><span style=\"font-family:Bookman Old Style; font-size:13pt\">b) What are the benefits of calculating consumer price index in an economy?\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(12 marks)<br \/>\n<\/span><\/p>\n<p>\n\u00a0<\/p>\n<p>\n\u00a0<\/p>\n<p><span style=\"font-family:Bookman Old Style; font-size:13pt\">6. a) Explain Irving Fisher&#8217;s Quantity Theory of money.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(6 marks)<br \/>\n<\/span><\/p>\n<p>\n\u00a0<\/p>\n<p><span style=\"font-family:Bookman Old Style; font-size:13pt\">b) What are the limitations of Quantity Theory of money?\u00a0\u00a0\u00a0\u00a0(14 marks)<br \/>\n<\/span><\/p>\n<p>\n\u00a0<\/p>\n<p>\n\u00a0<\/p>\n<p><span style=\"font-family:Bookman Old Style; font-size:13pt\">7. a) Account for the high rates of structural unemployment in developing countries.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(8 marks)<br \/>\n<\/span><\/p>\n<p>\n\u00a0<\/p>\n<p><span style=\"font-family:Bookman Old Style; font-size:13pt\">b) Suggest policy measures that can be taken to reduce unemployment in an economy.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(12 marks)<br \/>\n<\/span><\/p>\n<p>\n\u00a0<\/p>\n<p style=\"text-align: center\">\n\u00a0<\/p>\n<p style=\"text-align: center\">\n\u00a0<\/p>\n<p style=\"text-align: center\">\n\u00a0<\/p>\n<p style=\"text-align: center\"><span style=\"font-family:Bookman Old Style; font-size:13pt\"><strong>END<br \/>\n<\/strong><\/span><\/p>\n<p><span style=\"font-family:Bookman Old Style; font-size:13pt\"><br \/>\n\t\t<\/span>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>P220\/1 Economics Paper 1 Nov 2020 3 hours \u00a0 \u00a0 ST. MARYS&#8217; KITENDE Uganda Advanced Certificate Of Education RESOURCEFUL MOCK<\/p>\n","protected":false},"author":1,"featured_media":311,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5,1],"tags":[],"class_list":["post-54","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economics","category-uncategorized"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>UACE Economics Paper 1 MOCK EXAMINATIONS ST. MARYS\u2019 KITENDE - MAKTABA EDUCATION CENTER<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/edu.co.tz\/notes\/uace-economics-paper-1-mock-examinations-st-marys-kitende\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"UACE Economics Paper 1 MOCK EXAMINATIONS ST. MARYS\u2019 KITENDE - MAKTABA EDUCATION CENTER\" \/>\n<meta property=\"og:description\" content=\"P220\/1 Economics Paper 1 Nov 2020 3 hours \u00a0 \u00a0 ST. 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