THE UNITED REPUBLIC OF TANZANIA NATIONAL EXAMINATIONS COUNCIL OF TANZANIA, ADVANCED CERTIFICATE OF SECONDARY EDUCATION EXAMINATION

151/1ECONOMICS 1

(For Both School and Private Candidates)

Time: 3 Hours Year: 2021

Instructions

1. This paper consists of sections A, B and C with a total of eight (8) questions.
2. Answer all questions in section A and two (2) questions from each of sections B and C.
3. Section A carries twenty (20) marks, section B and C carry forty (40) marks each.
4. Non programmable calculators may be used.
5. All communication devices and any unauthorised materials are not allowed in the examination room.
6. Write your Examination Number on every page of your answer booklet(s).

SECTION A (20 Marks)

Answer all questions in this section.

1. Briefly describe five characteristics of capital.

2. Briefly explain five negative impacts of unemployment in the economic development of the country.

SECTION B (40 Marks)

Answer two (2) questions from this section.

3. Study the following table and then answer the questions that follow:

1. Fill in the table by calculating the sacrifice of consumer goods for capital goods.
2. Construct the Production Possibility Frontier curve.
3. What does Production Possibility Frontier illustrates? Give five points.
4. Distinguish consumers’ goods from Capital goods.

4. (a) Use the profit function to derive the profit maximization level of output.

(b) With the aid of diagrams, illustrate the equilibrium of the firm under perfect competition in the short run.

5. (a) The manager of a hotel uses to sell 100 units of commodity X per day when price was 400/= per unit. When price of the commodity X rises from 400/= to 800/= per unit, the sales for commodity Y increases to 200 units per day.

1. Calculate cross elasticity of demand.
2. Interpret your answer in (i).

(b) Briefly analyse five factors of elasticity of supply.

SECTION C (40 Marks)

Answer two (2) questions from this section.

6. “Most of the developing countries experience frequent constant rise in general price level of goods in their economies.” Basing on this quotation, examine six factors that lead to demand pull inflation.

7. Explain six strategies to be adopted to move the population size of Tanzania towards the optimal level.

8. Most of the privatized companies in Tanzania have shown degrees of improved efficiency and higher profitability. Analyze six challenges that Tanzania has faced in the process of privatization.

THE UNITED REPUBLIC OF TANZANIA NATIONAL EXAMINATIONS COUNCIL OF TANZANIA, ADVANCED CERTIFICATE OF SECONDARY EDUCATION EXAMINATION

151/2ECONOMICS 2

(For Both School and Private Candidates)

Time: 3 Hours Year: 2021

Instructions

1. This paper consists of sections A, B and C with a total of eight (8) questions.
2. Answer all questions in section A and two (2) questions from each of sections B and C.
3. Section A carries twenty (20) marks and sections B and C carry forty (40) marks each.
4. Non-programmable calculators may be used.
5. All communication devices and any unauthorised materials are not allowed in the examination room.
6. Write your Examination Number on every page of your answer booklet(s).

SECTION A (20 Marks)

Answer all questions in this section.

1. Foreign aid may contribute in developing the economies of the poor countries. Briefly describe the main five forms of the foreign aid received by the recipient countries from donor countries.

2. The member states in regional integration help each other to enjoy economies of scale and improve production in the region. In this view, evaluate five benefits which can be enjoyed by the member states through economic integration.

SECTION B (40 Marks)

Answer two (2) questions from this section.

3. (a) Calculate changes in consumption and savings and fill blank spaces in the table.

(b) Basing on the information in the table, elaborate five determinants of consumption.

4. Study the data in the following table and answer the questions that follow:

(a) Based on the information given in the table, explain the stages in the process of credit creation.

(b) Analyse seven factors which influence the process of credit creation in the developing countries like Tanzania.

5. Study the data given in the following table and answer the questions that follow:

1. Calculate the visible balance for both years and interpret your answer.
2. Calculate the invisible balance for both years.
3. Give three examples of invisible trade.
4. Calculate the net capital flow for both years and give an example of capital flows.
5. Determine the net transfer and give examples of transfers.
6. Calculate the current balance.
7. Is it always the case that balance of payments accounts must balance? Give a reason for your answer.

SECTION C (40 Marks)

Answer two (2) questions from this section.

6. Analyse six factors which must be considered when choosing a mode of transporting goods.

7. “Public borrowing is a source of government revenue for spending on infrastructure and investment.” Justify this contention by giving six roles played by borrowed funds in the economic development of the developing countries like Tanzania.

8. “Poor infrastructure is one of the major factors which act as a stumbling block in the improvement of the agricultural sector in the Tanzanian economy.” Argue for this contention by giving six points.