Category: 1.3 Economics

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Q.What is price floor and price ceiling? A.Price floor and price ceiling is related to setting price level in the market. Government intervention is key factor in regulating the price Read More …

Q. b) Explain the advantages and disadvantages of the following economic systems:- i) Central command system. (5 marks) ii) Free market system. (5 marks) iii) Regulated or mixed market system. Read More …

Q. b) Explain the advantages and disadvantages of the following economic systems:- i) Central command system. (5 marks) ii) Free market system. (5 marks) iii) Regulated or mixed market system. (5 Read More …

Q. b) Explain the advantages and disadvantages of the following economic systems:- i) Central command system. (5 marks) ii) Free market system. (5 marks) iii) Regulated or mixed market system. Read More …

Q.b) Define inflation and explain the different degrees of inflation. (8 marks) (8 marks, 2013 Q5b) A.Inflation is associated with rising price. It is a situation in which there is Read More …

Q.b) Explain the characteristics of money as a medium of exchange. (5 marks) (5 marks, 2013 Q6b) A.MONEY CHARACTERISTICS: The four primary characteristics of money are:  (1) durability,  (2) divisibility,  Read More …

Q. b) Explain with examples, the meaning of protectionism. (5 marks) (5 marks, 2013 Q7b) A. DEFINITION OF ‘PROTECTIONISM’ Government actions and policies that restrict or restrain international trade, often Read More …

Q.a) Fiscal Policy refers to the regulation of the level of government spending, taxation and public debt. Explain: iii) Contractionary Fiscal Policy. (5 marks) (5 marks, 2013 Q7aiii) A. From Read More …

Q.What is expansionary monetary policy? Is there a similarity to expansionary fiscal policy? A.Below is an article from AmosWEB under Encyclonomic Webpedia: EXPANSIONARY MONETARY POLICY: A form of monetary policy Read More …

Q.a) Fiscal Policy refers to the regulation of the level of government spending, taxation and public debt. Explain: ii) Expansionary Fiscal Policy. (5 marks) (5 marks, 2013 Q7aii) A.DEFINITION OF Read More …

Q. What are your arguments for and against Protectionism? A.Arguments for Protectionism Fledging industry argument: Certain industries possess a possible comparative advantage but have not yet exploited economies of scale. Short-term Read More …

Q. In the context of international trade, explain the followings:- a) Tools of protectionism. (10 marks) (10 marks, 2014 Q8a) A. Protectionism & Barriers to Trade Author: Geoff Riley  Last updated: Sunday 23 Read More …

Q.Differentiate the two. i) Government Operating Expenditure and Government Development Expenditure. (10 marks, 2012 Q8i) A. Ref:Infrastructure University Kuala Lumpur lecture slides:Macroeconomics (DBF 106): Government Expenditure athttp://www.slideshare.net/bubuadynn/macroeconomic-government-expenditure-comic A good comparison Read More …

Q. d) Discuss the causes of supply of money to rise in an economy. (8 marks) (8 marks, 2012 Q7d) What causes the money supply to rise? A. Banks choose Read More …

Q.Differentiate between M1 and M2 supply of money. (4 marks) (4 marks, 2012 Q7c) A.This definition of M1, M2 or even M0, MB, M3 and M4 are different measures of Read More …

Q.There are always gainers and losers from inflation and deflation. Discuss. Which is more damaging to the economy as a whole and why? (15 marks) (15 marks, 2012 Q6b) A.On Read More …

Q. a) Discuss the characteristics of the following market structure. Support your answer with examples. i) Perfect competition. (5 marks) ii) Monopolistic competition. (5 marks) (5 marks, 2012 Q4aii) A. Read More …

Q. b) Monopoly is defined as a market structure where there is only one firm in the industry. For a firm to maintain its monopoly position, there must be barriers Read More …