- Explain the term demand (2mks)
- Give 3 functions of co-operative societies.(3mks)
- Explain the concept of scarcity, choice and opportunity cost.(3mks)
- Give the 2 types of goods which may NOT be affected by the law of demand.(2mks)
- Give four factors that may affect the demand of a commodity.(4mks)
- The diagram below represents a shift on the supply curve.
Give 4 reasons why SS has shifted to S1S1.( 4mks) - Give three other methods that may be used in determining the price other than through the forces of demand and supply.( 4mks)
- Give 4 incentives those can be given by the government to encourage development of firms .(4mks)
- Briefly 4 explain factors to be considered by a firm before embarking on the production of a particular product. (8mks)
- Explain 4 disadvantages of firm delocalization. (8mks)
- Explain 4 factors which have contributed to existence of small firms in any economy dominated by big businesses.(8mks)
Marking Scheme
- Explain the term demand (2mks)
- Refers to the quantity of a Commodity that buyers are willing to and able to buy at a given price over a given period of time
- Give 3 functions of co-operative societies.(3mks)
- Offering credit facilities to members
- Negotiating for better prices for the members products
- Providing education and better production methods
- Looking for markets
- Offer transport/storage facilities
- Explain the concept of scarcity, choice and opportunity cost.(3mks)
- Scarcity is a situation where by resources are scarce in comparison to human needs/wants which are unlimited.
- Choice- human beings have to make on what to buy with the scarce resources.
- Opportunity cost- whatever one buys , he foregoes the other. This is the alternative on the values foregone.
- Give the 2 types of goods which may NOT be affected by the law of demand.(2mks)
- Inferior goods
- Prestigious/ostentatious goods
- Give four factors that may affect the demand of a commodity.(4mks)
- Price of the commodity
- Level of consumer income
- Prices of other related goods
- Changes in fashion, tastes and preferences
- Government policy
- Changes in population
- Seasonal changes
- Distribution of incomes
- The diagram below represents a shift on the supply curve.
Give 4 reasons why SS has shifted to S1S1.( 4mks)- Improved technology on production
- Favourable weather conditions
- Favourable changes in government policy
- A decrease in cost of production
- Expected fall in price in the future
- Give three other methods that may be used in determining the price other than through the forces of demand and supply.( 4mks)
- Government intervention
- Haggling/bargaining
- Auction
- tendering
- Give 4 incentives those can be given by the government to encourage development of firms.(4mks)
- Offering cheap /free land
- Reduction of taxes
- Offering subsidies
- Offering financial assistance
- Improving infrastructure ,security e.t.c
- Briefly 4 explain factors to be considered by a firm before embarking on the production of a particular product. (8mks)
- Profitability
- Level of competition
- Availability of resources
- Government policy
- Cost of production
- Demand/market for the product
n.b each point must be fully explained
- Explain 4 disadvantages of firm delocalization. (8mks)
- Spread of pollution
- Skilled labour may not be easily available
- Security may be a problem in some areas
- Service industries may not be available.
n.b each point must be fully explained
- Explain 4 factors which have contributed to existence of small firms in any economy dominated by big businesses.(8mks)
- Size of market
- Nature of products
- Simplicity of the organisation
- Flexibility of the firms
- Quick decision making
- More manageable
- Retain control
- Few legal processes
n.b each point must be fully explained
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