easytvet.com 2901/104 —-2906/105 902/105 -2907/105 2903/105 -2909/105 2924/105 — 2926/105 ECONOMICS November 2017 Time: 3 hours THE KENYA NATIONAL EXAMINATIONS COUNCIL, DIPLOMA IN SECRETARIAL STUDIES DIPLOMA IN SALES AND MARKETING DIPLOMA IN SUPPLY CHAIN MANAGEMENT DIPLOMA IN BUSINESS MANAGEMENT DIPLOMA IN CO-OPERATIVE MANAGEMENT DIPLOMA IN ROAD TRANSPORT MANAGEMENT DIPLOMA IN INVESTMENT MANAGEMENT DIPLOMA IN HUMAN RESOURCE MANAGEMENT MODULE I ECONOMICS 3 hours INSTRUCTIONS TO CANDIDATES This paper consists of SEVEN questions. Answer any FIVE questions in the answer booklet provided. All questions carry equal marks. Candidates should answer the questions in English. ‘This paper consists of 2 printed pages. Candidates should cheek the question paper to ascertain that both Pages are printed as indicated and that no questions are missing, © 2017 The Kenya National Examinations Council. ‘Turn overeasytvet.com 2901/104 2906/05 2902/105 -2907/105 2903/105 — 2909/105 2924/105 —-2926/105 ECONOMICS November 2017 ‘Time: 3 hours THE KENYA NATIONAL EXAMINATIONS COUNCIL DIPLOMA IN SECRETARIAL STUDIES DIPLOMA IN SALES AND MARKETING DIPLOMA IN SUPPLY CHAIN MANAGEMENT DIPLOMA IN BUSINESS MANAGEMENT DIPLOMA IN CO-OPERATIVE MANAGEMENT DIPLOMA IN ROAD TRANSPORT MANAGEMENT DIPLOMA IN INVESTMENT MANAGEMENT DIPLOMA IN HUMAN RESOURCE MANAGEMENT MODULE I ECONOMICS 3 hours INSTRUCTIONS TO CANDIDATES This paper. consists of SEVEN questions. Answer any FIVE questions in the answer booklet provided. All questions carry equal marks. Candidates should answer the questions in English. This paper consists of 2 printed pages. Candidates should check the question paper to ascertain that both pages are printed as indicated and that no questions are missing. © 2017 The Kenya National Examinations Council ‘Turn overeasytvet.com 1, (@)_ There are certain production related decisions that a firm needs to make as a result of scarcity of resources. Outline four such decisions. (8 marks) (b) Country X has lately experienced a dramatic increase in the number of private cars on its roads. Explain six factors that might have led to such an increase in the demand for private cars, (12 marks) 2. (a) There are certain barriers that limit the geographical mobility of labour. Outline five such barriers. (10 marks) (>) Explain five merits of raising government revenue through indirect taxes. (10 marks) > (a) It is common for workers in different occupations to earn different wages. Explain five factors that may account for such wage differentials. (10 marks) (b) There are’certain inefficiencies that may be associated with free market economic system, Highlight five such inefficiencies (10 marks) 4. (a) Commercial banks perform certain roles in a médern economy. Explain five such roles. (10 marks) (b) Describe five types of elasticity of supply for a commodity. (10 marks) 5. (a) Developing countries have certain'common features that define them. Highlight ‘six such features. (12 marks) (6) Country ¥ recently liberalized the prices of a wide range of consumer goods that were previously under government control. Explain four possible effects of such price liberalization (8 marks) 6. (@_Deseribe five types of internal economies that a firm may enjoy from its own growth, (10 marks) (b) Many developing countries find it necessary to put restrictions on their trade relations with other countries. Outline five reasons that may account for such restrictions. (10 marks) 7. (a) __Explain five uses to which a country may put its national income statistics. _ (10 marks) (b) Explain five reasons that would make a government to tax its citizens. (10 marks) THIS IS THE LAST PRINTED PAGE. 2901/104 2924/105 2909/05 2902/105 2906/105 2926/105 2903/1085 2907/105 ‘November 2017