Highlight four circumstances that may create trade restrictions in an economy.
4 marks
11.
Outline four distinctive features of a monopolistic market competition.
4 marks
12.
Under what four conditions would a trader advertise his products over the radio instead of television?
4 marks
13.
Outline four ways entrepreneurship has benefited Kenyan economy.
4 marks
14.
State four circumstances under which a business would choose to transport goods by air.
4 marks
15.
The following information relates to Johny’s Business as at 1/6/2013. Prepare a Trial Balance as at
date:
Stock 76,500
Creditors 450,400
Debtors 350,000
Bank 260,400
Fixed asset 970,200
Capital 1,300,000
Cash 120,500
Rent due 26,700
4 marks
16.
Give four differences between commercial Banks and Non-Bank financial institution (4mks)
Commercial bank
Non Bank financial
4 marks
17.
Highlight any four difficulties encountered in satisfaction of human wants.
4 marks
18.
Match the information in A to that in B in the table below using an arrow
Unemployment
Description
(i) Real wage unemployment
Demand in labor due to technological change
(ii) Frictional unemployment
Business not willing to employ
(iii) Seasonal unemployment
Loosing jobs in order to look for new ones
(iv)Structional unemployment
Occurring repeatedly at similar times
4 marks
19.
Highlight four principles of public expenditure.
4 marks
20.
The following figures relates to the retail business of Omondi for the Month of July 2012
Sales 50,000
Expenses were 10% of sales
Cost of good sold 40,000
Calculate:
(i) Mark-up
(ii) Margin
(iii) Total Expenses
(iv) Net profit
4 marks
21.
Outline four functions of Central bank in an economy.
4 marks
22.
State four challenges that farmers encounter when they sell their produce through marketing boards.
4 marks
23.
List down four trends in business ownership.
4 marks
24.
Outline four ways in which the business may be affected by the legal environment in which it operates
4 marks
25.
Highlight benefits drawn from economic intergration.
