Distinguish between the following:
(a) wants and effective demand; [5 marks]
(b) demand schedule and demand e; [5 marks]
(c) individual demand and market demand, [5 marks]
(d) change in demand and change in quantity demanded. [5 marks]
(a) Describe the output method of measuring the gross domestic product of a country. [6 marks]
(b) How is the net national product at factor cost obtained from gross domestic product? [8 marks]
(c) State two problems associated the output method. [6 marks]
The supply situation for rice in country X over a period as shown in the table below. Use the information in the table to answer the questions that follow.
| Period | Price ($) | Quantity supplied (bags) |
| December 2004 | 30 | 100 |
| January 2007 | 40 | 150 |
| April 2009 | 50 | 160 |
(a) Calculate the co-efficient of price elasticity of supply for rice between December 2004 and January 2007.
(b) Is the supply of rice elastic? Give a reason for your answer.
(c) State any three reasons which may cause an increase in the supply of rice,
The following are the loans granted by a commercial bank to different categories of individuals. Use the information to answer the questions that follow: Bankers $8,000, Farmers $8,000, Miners $7,000, Retailers $5,000, Tailors $4,000 Teachers $6,000, Drivers $4,000, Fishermen $3 000.
(a) Arrange the information in the form of a table grouping the individuals into: (i) Primary sector; (ii) Secondary sector; (iii) Tertiary sector.
(b) Express the loan to each sector of a ratio of the total loan granted
(c) Present the total loans granted to the sectors in a simple bar chart, (Use of graph sheet is essential)
(a) What is centrally planned economy?
(b) Outline any four features of a capitalist economy.
