NAMAGABI SECONDARY SCHOOL

ECONOMICS DERPARTMENT

SENIOR FIVE CLASS

BEGINNING OF TERM TWO 2024

SECTION A

DURATION 2:30 MINUTES

Instructions: section A is compulsory and any three in section B

1. a) i) Define the term opportunity cost (01mk)

ii) Give three importance of the opportunity cost concept in an economy (03mks)

b) i)Distinguish between equilibrium price and normal price (02mks)

ii) Explain the functions of price in an economy (02mks)

c) i)What is production possibility frontier? (01mk)

ii)Give any three causes of the outward shift of production possibility frontier (03mks)

d i)Distinguish between economic rent and commercial rent (02mks)

ii)Give any two determinates of economic rent (02mks)

e i)Define the term composite demand (01mk)

ii)Mention any three examples of composite demand in your country (03mks)

SECTION B
2. a)Distinguish between market price and equilibrium price (04mks)

b) Explain the various methods used in price determination in an economy (16mks)

3. a)Define the term aggregate demand (02mks)

b) Explain the factors that limits effective demand (18mks)

4. a)Distinguish between geographical mobility and occupational mobility (04mks)

b) Explain the barriers to occupational mobility of labor (16mks)

5. a)Define the term price elasticity of demand (PED) (02mks)

b) Explain the factors that influence price elasticity of demand in an economy (18mks)