Question 1
Outline four principles of economic planning
Answer
a) Compatibility where the plan should cater for as many interests and views of the general public as possible.
b) Consistency in that the projection should be consistent with various resources required to implement the plan.
c) Comprehensiveness in that it should cover all the sectors of the economy.
d) Should be optimal in that the strategies to achieve development targets should aim at achieving the best results for the society.
b) Consistency in that the projection should be consistent with various resources required to implement the plan.
c) Comprehensiveness in that it should cover all the sectors of the economy.
d) Should be optimal in that the strategies to achieve development targets should aim at achieving the best results for the society.
Question 2
Outline four ways in which a business idea can be implemented
Answer
a. creating a new product
b. improving the production process
c. improving the quality of services
d. improving quality of an existing product
b. improving the production process
c. improving the quality of services
d. improving quality of an existing product
Question 3
Highlight four circumstances under which a firm would be located near a market.
Answer
i. Where the final product is bulky
ii. Where the market is localized
iii. Where the product is perishable
iv. Where the products are fragile.
ii. Where the market is localized
iii. Where the product is perishable
iv. Where the products are fragile.
Question 4
State four measures that the government can use to encourage increase in the country’s volume of exports.
Answer
a. Offering customs drawback.
b. Creation of export processing zones.
c. Devaluation of local currency to make exports cheaper.
d. Encouraging foreign investments into the country to increase inflow of capital.
b. Creation of export processing zones.
c. Devaluation of local currency to make exports cheaper.
d. Encouraging foreign investments into the country to increase inflow of capital.
Question 5
Highlight four positive impacts of the physical environment on the operations of a business
Answer
a) Good transport network makes easier for the movement of factors of production
b) Fresh air prevents workers from falling sick thus encouraging them to work and produce more better products
c) Enough water enhances cooling of machines, washing equipment and even drinking making it easier for production to take place
d) Good communication network enhances immediate feedback and quick decision making in the business
b) Fresh air prevents workers from falling sick thus encouraging them to work and produce more better products
c) Enough water enhances cooling of machines, washing equipment and even drinking making it easier for production to take place
d) Good communication network enhances immediate feedback and quick decision making in the business