ECONOMICS 3

ECONOMICS TRIAL QUESTIONS

1 i) To what extent can Economics be considered a Science??

ii) Suppose that mr prophecy had the ff scale of preference::
~Textbooks  ¢100
~Exercise Books ¢50
~Uniforms ¢50
~Shoes ¢40
~Provisions ¢60
~Suitcase ¢150
~Pressing Iron ¢20
~Spectacles ¢100

a) Define scale of preference. What is its importance?

b) Define opportunity cost

C) If mr prophecy had ¢100, what would he spend it on? What would be the opportunity cost of the items purchased?

D) If Mr prophecy had ¢150 instead of ¢100, what would he purchase? What would be the opportunity cost?

ii)Explain 5 reasons why the study of Economics is important.

*2* a) i) "Choices arise because of scarcity of resources". Explain

ii) What problems do the knowledge of economics help us to solve??

iii) Why is economics important to the producer??

B) "Economics is the science which studies human behavior as a relationship between ends and scarce means which have alternative uses". Comment on the statement.

*3*  i) Describe each of the ff sectors of the economy:
~Primary
~Secondary
~Tertiary

ii) Using a table, classify the ff activities under the three sectors described above.
~Teaching ~Farming ~Medical Practice ~Entertainment ~Banking ~Hunting ~Fishing ~Plastic Making ~Road Construction ~Canning.

ii) Which of mankind's economic activities are studied in Economics? Explain.

*4* ai) "Land is regarded as being different in several respects from the other factors of production " State the differences.

ii) What factors determine the supply of land for particular use?

iii) What factors determine land as a natural resource?

B) i) Define Land.

ii) Outline any five characteristics of land.

iii) Explain any four contributions of land to economic activities.

C) i) Distinguish between geographical mobility of labour and occupational mobility of labour.