GISENYI ADVENTIST SECONDARY SCHOOL
ECONOMICS WORK /S5MCE and MEG
Instructions
1. ATTEMPT ALL QUESTIONS AND SHOW YOUR WORKING.
2. YOU HAVE 2 DAY TO COMPLETE THIS PAPER AND SUBMIT ON NEXT
DAY
3. YOU HAVE TO DO TO DO MORE RESEARCH ON INTERNET AND CALL
YOUR COLLEGUE FOR ASSISTANCE (DO NOT VISIT THEM IN ORDER TO
PREVENT COVID 19).
4. IF POSSIBLE WORK ON COMPUTER IN MS WORD AND SUBMIT IN A
FOLDER WITH YOUR NAME AS ITS NAME.
Q1) a) Give the reasons why the demand curve under perfect competition market is perfectly
elastic demand? /3 marks
b) Demonstrate how in perfect competition market, price is equal to average revenue? / 3 marks
c) To what extent perfect competition is important in an economy? / 4 marks
Q2) a) when do we say that a firm under perfect competition market has reached on equilibrium
point, illustrates it graphically? / 4 marks
b) With help of diagram of losses under monopoly in the short run, on it show the point which
represents the following:
i) MC ii) AC iii) AR iv) MR V) Equilibrium of a firm vi) Name area which represents losses vii)
Name area which represents total costs viii) name area which represents total revenue? / 4marks
Q3) a) Distinguish between break-even point and shut-down point? / 2 marks
b) Study the figure below and answer the question as follows:
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Where P1 = D1 =MR1=AR1, P2 = D2=MR2=AR2
I) What do point A, B, C, D and S represent? / 5 marks
ii) Does a firm below the point S continues to operate and give reasons why? / 3 marks
Q4) a) Describe the basis of monopoly in Rwanda. And give examples? /5 marks
b) Why do you think that it is necessary to interfere with monopoly firms in Rwanda? 3
marks
Q5) Having tackled all market structures in which firms in Rwanda operate, which would you
recommended for most effective utilization of resources and solving macro-economic problems
in Rwanda and why? /5 marks
Q6) a) what is national income stands for? /2 marks
b) Differentiate the following:
i) GDP from GNP
ii) nominal income from real income
iii) NDP from NNP
iv) NNPmpfrom NNPFC/4 marks
Q7) a) Explain the main approaches used for measuring national income /3 marks
b) calculate income per capita if the total national income is 20 billion francs and the
population is 50 million of people / 1 mark
c) The per capita income in country A is item times more than it was In 1980. Does it mean that
an average person in country A enjoys a standard of living ten times more than the average
person in 1980? /4 marks
Q9) There are two approaches of determining national income equilibrium i.e leakages-
injections and inflationary – deflationary approaches, with clear explanations and illustrations,
Discuss the national income equilibrium by using injections – leakages approach? / 8 marks
10).i..Define the term price discrimination./3Marks
(ii) Explain the different forms of price discrimination/4marks.
(iii) Analyse the conditions necessary for price discrimination to be successful./4marks
11). Study the table below showing population and GNP of countries A and B and answer the
questions that follow.
Country GNP (millions) Population (million)
A 1200 20
B 750 15
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Calculate the per-capita income of countries A and B/6marks
12. In 2015 three countries had measured the value of goods and services arising
from their productive activities, the country A has proceeded by adding income
received by individuals, firms and government from their annual exchange of
goods and services and the total was 800billion US $, the second B has considered
all National expenditures on final commodities and has found the summation of
9500Billion of US $, the third has counted the value added on output of all sectors
of the economy and total was 900 Billion of US $.
a) Give the name of approaches used by each country to value its activities.
/3marks
b) Which concept is used to express the value of those activities when the
concerned producers:/2marks
i) . Are both nationals and foreigners living in the country?
ii).Are only Nationals living in the country and out of it?
iii.Are only Nationals living in the country and out of it and the value of
depreciation is removed?
iv.The monetary value of all produced commodities in country B is greater than
ones of country A and C. That means the well fare of the population of country B
is the best. Do you agree with this affirmation?/
c. Discuss the factors that should determine the level of monetary value of
activities in Rwanda./3marks
Assume you are the minister of finance, after computing, you found out that the
monetary value of Rwandans ‘commodities is low, propose what should be done to
improve the standard of living of the population of Rwanda. /2marks
E. When a country calculated those monetary values of commodities on
consecutive twenty years, it found that they fluctuated and made a business
cycle composed commonly by 4 phases.
i. Using illustration explain those phases of business cycle./2marks
Ii.Evaluate their effects on national income./3marks
Iii.Propose different measures to be taken during each phase. /2marks
13. . Choose the best alternative:/3marks
i.The firm under oligopoly is in equilibrium when
(a) MC = MR (c) MC = AC
(b) AC = AR (d) AR = MRl/1marks
ii.The firm under oligopoly earns:
(c) Normal profits (c) Abnormal profits
(d) Losses (d) None of the abovel/1marks
iii.Oligopoly firms operate at
(e) Optimum capacity (c) Over capacity
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(f) Excess capacity (d) Equilibrium point/1marks
iv.The demand curve under oligopoly is:
(g) Elastic (c) Inelastic
(h) Perfectly elastic (d) kinked/1marks
STAY HOME, STOP COVID-19
For any query contact your facilitator: 0788290920(WatsApp)
Submit on: gassgisenyi@gmail.com
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