P220/2

ECONOMICS

Paper 2

July /Aug 2017

3 hours

RESOURCEFUL MOCK 2017

Uganda Advanced Certificate of Education

ECONOMICS

Paper 2

3 hours

INSTRUCTIONS

Answer five questions only.

Section A is compulsory. Answers to this section should be precise and concise.

Answer four questions from section B.

All questions in section B carry equal marks.

Any questions attempted will not be marked.

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 SECTION A (20MARKS)

1. a) (i) Distinguish between public goods and free goods.

(02marks)
(ii) Give two examples of public goods.
(02marks)

b) (i) Differentiate between price legislation and price leadership. (02marks)

(ii) Mention two forms of price leadership used by oligopoly firms.
(02marks)

c) (i) Define the term “Export multiplier.” (01mark)

(ii) Given than the country’s export earnings increased from US dollars 2,500,000 to US
dollars 3,580,000 and marginal propensity to save (MPS) is 25%. Calculate the final
change in income. (03marks)

d) Mention four benefits of relying on price mechanism in Uganda.

(04marks)

e) (i) Distinguish between Directive planning and comprehensive planning.

(02marks)
(ii) Give two importance of planning in Uganda.
(02marks)

SECTION B (80MARKS)

2. a) Discuss the measures used by oligopoly firms to promote sales in Uganda.

(08marks)
b) Explain the consequences of existence of oligopolistic markets in Uganda.
(12marks)

3. a) Account for existence of export promotion strategy of industrialisation in Uganda.

(10marks
)

b) What factors limit export promotion strategy of industrialisation in Uganda. ((10marks)

4. a) What are the benefits of having Trade Unions in your country?

(06marks)
b) Explain the factors that affect the strength of Trade Unions in Uganda.
(14marks)

5. a) Describe the structure of industrial sector in Uganda.

(10marks)
b) What measures have been taken to promote industrial sector in Uganda.
(10marks)

6. a) Explain the factors responsible for unfavourable Terms of Trade (T.O.T) in Uganda.

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 (10marks
)

b) Suggest the measures that may be adopted to improve Terms of Trade in Uganda.
(10marks
)
7. a) How do commercial Banks achieve
(i) Profitability
(04marks)
(ii) Liquidity
(04marks)

b) Discuss the functions of commercial Banks in Uganda.

(12marks)

END