TOTAL MARKS: 100 TIME: 3 Hour

Q.1: Define: (20 Marks)

1. Market Economic System:________________________________________________________________________
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2. Monopoly:____________________________________________________________________________________
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3. Nationalization:________________________________________________________________________________
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4. Commercial Bank:_____________________________________________________________________________
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5. Islamic Bank:____ _____________________________________________________________________________

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6. Propensity to Consumer:________________________________________________________________________
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7. Interest Rate:_________________________________________________________________________________
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8. Discrimination:________________________________________________________________________________
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9. Fringe Benefits:____ ___________________________________________________________________________

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10. Personal Debt: ______________________________________________________________________________

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Q.2: The following headline appeared in UK newspapers in 2017: “More resources must be devoted to the National
Health Services”. This would involve making some difficult choices because of the basic economic problem.

A. Define the Basic Economic Problem (02)

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B. Explain and Contrast how resources are allocated to different uses in a market and mixed economic system?(04)
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C. Discuss whether an economy would benefit from an increase in resources allocated to healthcare? (04)
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Q.3: Global demand for bicycles has been rising rapidly and sales are expected to reach US$60 Billion a year by 2021
according to a report published in 2016. The highest growth in demand is expected in countries in the Asia Pacific
region. Here, the price elasticity of demand for bicycles is estimated to be around -0.2, much lower than in many
Western countries. Cigarette consumption also continues to rise in many countries in many Asia Pacific regions.

A. Define demand. (02)

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B. Explain two probable causes of an increase in consumer demand for bicycles. (04)
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C. Analyze why consumer demand for a product may be more price elastic in one country than in another. (04)
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Q.4: Explain any 4 advantages and 4 disadvantages of the market Economic System. (08)
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Q.5: If government intervention in the market, what problems created. Explain any 4 of them. (08)
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Q.6: Name the qualities of good money (any 4) (08)
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Q.7: Why is money so important? (04)

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Q.8: How do banks work? (04)

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Q.9: What is the revenue model of the bank? (04)

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Q.10: Which model of revenue of a bank is best and why? Either investment or lending? (06)
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Q.11: How many types of bank accounts are offered by any commercial bank? (06)
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Q.12: Why is credit control important in an economy? Which financial institute does this and how? (08)
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Q.13: Why do people save? (02)
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Q.14: What explains occupational wage differentials? (02)

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