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)

Time : 3:00 Hours Year: 2024

Instructions

1. This paper consists of sections A, B and C with a total of eight (8) questions.
2. 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. All writing should be in blue or black ink, except drawings which must be in pencil.
6. Communication devices and any unauthorized 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. In five points, briefly state the importance of opportunity cost in the economy.

2. Briefly explain five factors which determine the price elasticity of supply. 

SECTION B (40 Marks)

Answer two (2) questions from this section.

3. (a) How is the price of factors of production determined in a perfectly competitive market? Explain with the aid of a diagram.

 (b) Explain three factors that affect capital accumulation in a country.

4. (a) Study the following graphs and answer questions that follow:

1. Name the curves J, K and L.
2. Explain the variation of J, K and Las output increases.
3. Why is K starting from the original axis?
4. Why is the gap between J and K uniform?
5. Why do curves J and L start from the same point?

(b) Briefly describe five disadvantages of large scale business.

5. (a) Given the working population of country A as 20 million, the old as 15 million and the young as 25 million;

1. Calculate country A's dependence ratio.
2. Give economic interpretation of the value obtained in (i).

 (b) Identify four advantages and four disadvantages of a population structure in (a)

SECTION C (40 Marks)

Answer two (2) questions from this section.

6. Evaluate six effects of deflation in different sections of the society.

7. How can the government use monetary policy and fiscal policy to control the economic recession? Explain by giving six points.

8. A certain firm which is located near Umoja village produces a commodity which is highly demanded. As the firm increases production, it leads to pollution health risks for Umoja villagers. In the light of this situation, suggest six public methods which deal with externalities.

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)

Time : 3:00 Hours Year: 2024

Instructions

1. This paper consists of sections A, B and C with a total of eight (8) questions.
2. 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. All writing should be in blue or black ink, except drawings which must be in pencil.
6. Communication devices and any unauthorized 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.

I . Distinguish between the following economic concepts:

1. Tax evasion from tax avoidance
2. Money burden of tax from real burden of tax
3. Ad-Valorem tax from specific tax
4. Capital gain tax from capital levy tax
5. The incidence of a tax from formal incidence

2. "Planning is essential to make a proper use and allocation of scarce resources in the economy." Briefly elaborate the five main characteristics of the comprehensive plan.

SECTION B (40 Marks)

Answer two (2) questions from this section.

3. (a) The following table represents estimated national income values for a hypothetical economy in Tanzanian shillings.

Use the information in the table to compute:

1. Depreciation
2. GDP_mp
3. NNP_fc
4. NIFA and comment on the answer.

(b) Examine six problems encountered when determining national income by expenditure method.

4(a). Study data given in the table, calculate the terms of trade and fill in the blank spaces

(b) When are the terms of trade said to be favourable or unfavourable?

(c) Differentiate favourable terms of trade from favourable balance of trade.

(d) Is it true that favourable terms of trade always imply favourable balance of trade? Give three reasons for your answer.

5. (a) If the Bank of Tanzania reduces the discount bank rate to the commercial banks in the economy from 12% to 10%, what are the possible economic effects in the credit creation and the quantity of money in circulation?

(b) Account for five main differences and three similarities between the central bank and commercial banks in the economy.

SECTION C (40 Marks)

Answer two (2) questions from this section.

6. "The marketing boards help farmers to sale agricultural products at the best possible agreed prices provided they meet the specifications laid down by the board". In six points, evaluate the contribution of the marketing boards in the Tanzanian economy.

7. "Economic development involves an increase in gross national product and improvement in the welfare of the people." Substantiate this quotation by giving six indicators of economic development in the Tanzanian economy.

8. ^-Large scale farming of cash crops promotes the increase in efficiency and standard of leaving of the people in the economy."' Justify this statement by giving six advantages of cashew nuts production in the Tanzanian economy.