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

151/1 ECONOMICS 1

(For Both School and Private Candidates)

Duration: 3 Hours Year: 2026

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 choose two (2) questions from each 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. You should not write any notes in this question paper.
6. Communication devices and any unauthorised materials are not allowed in the examination room.
7. Write your Examination Number on every page of your answer booklet(s).

SECTION A (20 Marks)

Answer all questions in this section.

1.With examples, differentiate the following terms as used in economics:

1. Given goods and Inferior goods.
2. Competitive demand and Competitive supply.
3. Joint demand and Joint supply.
4. Composite demand and Composite supply.
5. Individual supply and Market supply.

2. Briefly explain five signaling functions of price.

SECTION B (40 Marks)

Answer two (2) questions from this section.

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

1. Complete the table by filling in all blank spaces.
2. At what level of output the firm will maximize profit?

4. Given the demand and supply functions to be:

Q_Dx = 5000 − 400P_x

and

Q_sx = 600P_x − 3000

Where:

• Q_Dx = Quantity of a commodity X demanded.
• Q_Sx = Quantity of a commodity X supplied.
• P_x = Price of a commodity X.

1. Graphically solve for the equilibrium price and quantity.
2. Describe three circumstances which may violate the law of demand.

5. (a) A short run production function is given as:

Q = −L³ + 15L² + 10L

Where: Q is the output and L is the labour employed per unit of time.

1. Derive MPL and APL functions.
2. Find the output at which MPL=APL.

(b) Briefly explain five demerits of small scale production.

SECTION C (40 Marks)

Answer two (2) questions from this section.

6. How can unemployment be alleviated in the economy? Explain by giving six points.

7. “Oligopoly markets are unfavourable to the economic welfare of the people”. Justify this statement by giving six points.

8. In six points, explain measures which can be used by the government to reduce the rate of inflation in the economy.

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

151/2 ECONOMICS 2

(For Both School and Private Candidates)

Duration: 3 Hours Year: 2026

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 choose two (2) questions from each of sections B and C.
3. Section A carries twenty (20) marks, sections B and C carry forty (40) marks each.
4. Non-programmable calculators may be used.
5. You should not write any notes in this question paper.
6. Communication devices and any unauthorised materials are not allowed in the examination room.
7. Write your Examination Number on every page of your answer booklet(s).

SECTION A (20 Marks)

Answer all questions in this section.

1. “Effective development strategies enable the economy of a particular country to increase both qualitatively and quantitatively.” Briefly describe five main development strategies.

2. “SADC is one of the major economic groupings which enable the member states to promote sustainable economic growth and rational utilization of the scarce resources in the regions.” Briefly justify this statement by giving five objectives of SADC in promoting sustainable economy.

SECTION B (40 Marks)

Answer two (2) questions from this section.

3. (a) Study the data given in the following table and answer the questions that follow:

(b)

4. Study the following diagram and answer the questions that follow.

(a) Explain five main effects of imposing a tariff in the economy.

(b) Briefly describe five disadvantages of protectionism through a tariff in the economy.

5

SECTION C (40 Marks)

Answer two (2) questions from this section.

6. “Liquidity and profitability are major essentials of a sound banking system.” Substantiate this statement by describing six essentials of a sound banking system.

7. “Natural factors and inelastic demand of the agricultural products are major causes of the fluctuation of prices of agricultural products.” In six points, explain the causes of price fluctuation of agricultural products in the Tanzanian economy.

8. The board of external trade plays a significant role in attracting international importers for our economy. Giving six points, evaluate the contribution of the board of external trade to the Tanzanian economy.