WOLMERS BOYS SCHOOL

BUSINESS EDUCATION DEPARTMENT

ECONOMICS
Six Weekly Exam
FOURTH FORM
DURATION:

70 Minutes

STUDENS NAME:
INSTRUCTION:

_________________________

Answer all multiple choice questions from section A and any TWO
questions from section B.
SECTION A

Do all 10 questions by circling the letter corresponding to the appropriate response.

1.

Which of the following is not a role of the government in the mixed economy.
(a)
(b)
(c)
(d)

2.

The price of a related product changes and demand for the other product changes in the
same direction. The product is
(a)
(b)
(c)
(d)

3.

A profit survey
A five years plan
An input output analysis
A master plan

Which of the following will lead to an increase in demand?

(a)
(b)
(c)
(d)

A normal good
Complimentary good
A substitution good
An inferior

To ensure the meeting of production targets, the central planning committee carries out
(a)
(b)
(c)
(d)

Income redistribution
Stabilization
Consumer protection
Owning the means of production.

A decrease in income
A decrease in taxes
A decrease in the product own price
A decrease in the price of a substitute.

Which of the following will lead to an increase in supply?

(a)
(b)
(c)
(d)

An increase in the product own price

An increase in consumer income
A decrease in the cost of production
An increase in demand

Why is the market the master of all voluntary transactions?

(a)
(b)
(c)
(d)

The price of beef has increased and the supply of leather will
(a)
(b)
(c)
(d)

Substitutes
Compliments
Jointly produce goods
Competing products

Which of the following is not a factor affecting supply?

(a)
(b)
(c)
(d)

10

Increase
Decrease
Remain constant
Increase and then decrease

The above question is an example of

(a)
(b)
(c)
(d)

All action revolved around it.

Consumers and firms benefit from the market transaction
Governments are not involved in market transaction
Exchange is no robbery

The product own price

Consumers income
The cost of production
Technology

As the price increase, the quantity that the firm sells increases. The is known as
(a)
(b)
(c)
(d)

The law of demand

The law of supply
The market curve
The supply curve
SECTION B
Do any TWO questions

11.

12

(a)

Define the term demand.

(4 Marks)

(b)

Explain the meaning of the term celris paribus and how it can be applied to the
concept of demand.
(4 Marks)

(c)

What is the difference between an increase in the quantity demanded and an

increase in demand?
(5 Marks)

(d)

What is meant by the law of demand

(2 Marks)

(a)

What is a mixed economy

(2 Marks)

(b)

Identify four roles of the government in a mixed economy

(4 Marks)

(c)

Identify THREE functions of the price mechanism in the market economy.

13

(3 Marks)
(4 Marks)

(d)

Explain any ONE of these functions

(e)

identify TWO countries that are good examples of the mixed economy
(2 Marks)

(a)

Define the term supply

(2 Marks)

(b)

Explain the term law of supply

(4 Marks)

(c)

Identify THREE factors affecting supply

(3 Marks)

(d)

What is meant by the term price and cost of production

(4 Marks)

(e)

Identify TWO reasons which will motivate firms to produce more if the price
increases.
(2 Marks)