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: 2022

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. Briefly explain the following concepts:

1. Dependence ratio.
2. An ageing population.
3. Optimum population.
4. Under population.
5. Over population.

2. By giving five points, explain the importance of opportunity cost.

SECTION B (40 Marks)

Answer two (2) questions from this section.

3.(a) Why a monopolist cannot charge any price in the market? Explain by giving five points.

(b) Suppose a market for mobile phones has a demand function Q=1000 − 10P, and the cost of the monopolist for producing mobile phones is C=0.005Q²+500. Find:

1. Profit maximizing output level.
2. Price of mobile phones.
3. Maximum profit.

4. (a) What is cross elasticity of demand? Explain how it is calculated and interpreted.

(b) Why does demand curve slope downwards from left to right? Explain by giving four points.

5.(a) Using illustration, show the stages of the law of diminishing marginal returns.

(b) Explain five limitations of the law of diminishing marginal returns.

SECTION C (40 Marks)

Answer two (2) questions from this section.

6. Examine six circumstances in which increase in money supply in the economy do not lead into increase in the general price level.

7. “Privatization is vital in improving the Tanzanian Economy.” Substantiate this contention by providing five advantages and five disadvantages of privatization policy.

8. “Interaction between economic system and development is one of the major reasons for the existence of externalities.” Justify this statement by giving six causes of externalities in the economy.

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: 2022

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. According to Rostow model of economic development, for a country to have a higher economic growth it must have improvement in technology and new industries. Basing on this model, briefly explain five characteristics of the economic growth in a country.

2. Tax is the main source of the government revenue. Briefly elaborate the main five components of direct taxes.

SECTION B (40 Marks)

Answer two (2) questions from this section.

3. Study carefully the data in the table and then answer the questions that follow:

1. Convert the data into cumulative percentage and draw Lorenz Curves for 2000 and 2010.
2. Interpret the information revealed by the curves.
3. Suggest five measures which can be adopted to reduce income inequality in the economy.

4. (a) State the theory of:

1. Absolute Advantage.
2. Cost Comparative Advantage.

(b) Study carefully the information in the table and then answer the questions that follow:

1. Which country has cost comparative advantage in the production of maize? Give a reason to support your answer.
2. Which country has cost comparative disadvantage in the production of rice? Give a reason.
3. In six points, briefly elaborate the significance of the cost comparative advantage in the economic development of the countries in trade.

5. (a) Differentiate the following economic concepts:

1. Assets of a commercial bank from Liabilities of a commercial bank.
2. Reserve ratio from cash ratio.
3. Liquidity ratio from legal reserve requirement.
4. Bank rate from rediscount rate.
5. Solvency from bankruptcy.

(b) Study carefully the data in the table and then fill in the blank spaces:

SECTION C (40 Marks)

Answer two (2) questions from this section.

6. “Inefficient system of marketing and distribution of goods and services in the economy make farmers perform poorly.” Basing on this statement, assess six factors which hinder the efficient running of marketing and distribution of commodities in the Tanzanian economy.

7. Poor development of the social and economic infrastructures especially in the rural areas is one of the major problems facing planners in the developing countries. Support this argument by giving six points.

8. “The industrial sector plays a significant role in the economic development in Tanzania.” In six points, substantiate this contention.