Danho
ZIMSEC O Level · 4050/1 · J2023

Economics Paper 1 June 2023

Questions
40
Time allowed
90 min
Syllabus code
4050/1

Sit this paper online

Questions
40
Pass mark
24
Sit this paper

Answer every question in the printed order, get marked at the end, then see the answers.

The questions

Question 1

National Income And Growth
Identify the index used to compare standard of living between countries
  1. AGDP per head
  2. BGDP at factor cost
  3. CGNP at market price
  4. DNet property income from abroad

Question 2

Business Organisation
The correct pair representing internal sources of finance is
  1. Arunning down stocks and subsidies
  2. Bfactoring of debts and selling debentures
  3. Csale of existing assets and bank loans
  4. Downer's savings and retained profits

Question 3

Business Organisation
Select the set with the correct combination of the contents found in a memorandum of association
  1. Acompany objectives, amount of share capital, rights and duties of directors
  2. Bname and address of company, company objectives, amount of share capital
  3. Crules concerning election of directors, number of shares, rights and duties of directors
  4. Dprocedure to be followed when issuing shares, amount of share capital, company objectives

Question 4

Production And Costs
The long run is defined as a period
  1. Awhen at least one factor of production is fixed
  2. Bwhen all factors of production are variable
  3. Cof ten (10) years in production
  4. Dwhen all factors of production are fixed

Question 5

Price Determination And Controls
A minimum price will only affect a market if
  1. AIt is set below the equilibrium price
  2. BIt is set above the equilibrium price
  3. CIt is set at the equilibrium price
  4. DIt is set below and above the equilibrium price

Question 6

Demand And Supply
Suppose there are 100 identical firms in the industry each willing to supply 10 ventilators at a given price. What is the market supply?
  1. A10
  2. B100
  3. C1000
  4. D1010

Question 7

Demand And Supply
An example of a determinant of supply that results in a leftward shift of the supply curve is
  1. Aan improvement in relevant technology
  2. Ban increase in the price of needed input
  3. Can increase in consumer incomes
  4. Dan increase in number of firms in the industry

Question 8

Demand And Supply
The table below shows the price, quantity demanded and quantity supplied to a market. Find the equilibrium price and quantity
  1. A$1 and 10units
  2. B$3 and 30units
  3. C$5 and 20units
  4. D$8 and 15units

Question 9

Population And Labour
Labor productivity can be improved by
  1. Aincreasing wages
  2. Btraining of workers
  3. Cincreasing number of employees
  4. Dreducing wages

Question 10

Population And Labour
In 2020 a firm produced 3800 carats of diamonds with 190 workers. Calculate the labor productivity for the firm.
  1. A0.05 carats per worker
  2. B0.5 carats per worker
  3. C2 carats per worker
  4. D20 carats per worker

Question 11

Population And Labour
The government can assist workers by
  1. Aincreasing indirect tax
  2. Bincreasing income tax
  3. Cimposing maximum wage
  4. Dimposing minimum wage

Question 12

Production And Costs
Superbright Pvt Ltd had the following at its disposal for carrying out production; delivery van, planter, shifting spanner and tractor. All these describe the private limited company's
  1. Aland
  2. Blabour
  3. Centrepreneur
  4. Dcapital

Question 13

Production And Costs
The reward for capital is
  1. Arent
  2. Bwage
  3. Cprofit
  4. Dinterest

Question 14

Economic Systems
In a market economy the decision of what to produce is determined by
  1. Aconsumer demand
  2. Bgovernment regulations
  3. Ccorporate leadership
  4. Dlabour union

Question 15

Government And Market Failure
A fair distribution of income and wealth in an economy can be done through the use of
  1. Aprogressive tax
  2. Bprice mechanism
  3. Cbranding of products
  4. Dproduct advertisement

Question 16

Basic Economic Problem
Capital intensive production answers which basic economic question?
  1. Ahow to produce?
  2. Bwhat to produce?
  3. Cfor whom to produce?
  4. Dwhen to produce?

Question 17

Production And Costs
Wildlife, forestry and fisheries belong to which factor of production?
  1. Acapital
  2. Blabour
  3. Centerprise
  4. Dland

Question 18

Basic Economic Problem
The basic economic questions are
  1. Awhat to produce ,when to produce, and why to produce
  2. Bhow to produce ,when to produce and for whom to produce
  3. Chow to produce, for whom to produce ,what to produce
  4. Dwhat to produce, how to produce and when to produce

Question 19

International Trade
Identify a characteristic of an economic union
  1. Aa common external tariff
  2. Ba common import duty
  3. Ca common external tariff and a common import duty
  4. Da single currency and common economic policies

Question 20

Money And Banking
The main function of a central bank is
  1. Aclearing cheques
  2. Bassist homebuyers
  3. Ccontrolling the country's currency
  4. Dencourage savers

Question 21

Money And Banking
Banks that offer mortgage loans are called
  1. Amerchant banks
  2. Bcommercial banks
  3. Cbuilding societies
  4. Dcentral banks

Question 22

Inflation
Identify a statement that correctly describes cost push inflation
  1. Aa general increase in the price level due to weather
  2. Ba general increase in the price level due to increases in the price of inputs
  3. Ca general increase in the price level due to too much money chasing too few goods
  4. Da general increase in the price level due to structural changes

Question 23

Inflation
From the following indices, which one is used to measure cost of living
  1. Ahuman development index
  2. Bconsumer price index
  3. CGDP per capita
  4. Dexport price index

Question 24

Population And Labour
Birth rate is calculated as
  1. A(number of live births/ population) x 100
  2. B(number of deaths/population) x 100
  3. C(1000/100) x number of live births
  4. Dbirth rate- death rate

Question 25

Government And Market Failure
An example of a merit good is
  1. Avaccination
  2. Bstreetlights
  3. Ctobacco
  4. Dpastures

Question 26

Population And Labour
Optimum population, is described by
  1. Aoutput per person is very low
  2. Boutput per person is fast increasing
  3. Coutput per person is at its maximum
  4. Doutput per person is falling

Question 27

National Income And Growth
Investment in infrastructure will benefit the economy through,
  1. Aincreased inflation
  2. Breduced literacy
  3. Cenvironmental degradation
  4. Dsustainable development

Question 28

National Income And Growth
The real GDP of a country rose from $16 billion to $20 billion. Calculate the growth rate
  1. A10%
  2. B20%
  3. C25%
  4. D80%

Question 29

National Income And Growth
State an advantage of economic growth and development
  1. Aincreased output
  2. Bincreased pollution
  3. Cexhaustion of resources
  4. Ddecrease in population

Question 30

International Trade
State the formula for calculating terms of trade
  1. Aretail price index in the current year minus retail price index in the base year
  2. Bexport of services minus import of services
  3. C(index of export prices/import price index) x 100
  4. Dexport index minus import index

Question 31

International Trade
What effect will imposition of a tariff have on prices and production in the country imposing the tariff?
  1. Aprices rise, production rise
  2. Bprices rise, production falls
  3. Cprices fall, production falls
  4. Dprices fall, production rise

Question 32

National Income And Growth
The following are uses of national income statistics except,
  1. Ato measure standard of living within the country
  2. Bcan be used to seek financial assistance from international financial institutions
  3. Cto measure the rate of economic growth
  4. Dto determine the quality of goods produced

Question 33

Population And Labour
The other name for demand deficiency unemployment is
  1. Atechnological
  2. Bfrictional
  3. Cseasonal
  4. Dcyclical

Question 34

National Income And Growth
From the following variables, which one is a component of national income
  1. Ainflation
  2. Bunemployment
  3. Cinvestment
  4. Dexternalities

Question 35

Business Organisation
A cooperative is described as
  1. Awhen two or more businesses agree to start a new project
  2. Bgroups of people who agree to work together and pull their resources
  3. Ca group of between two and twenty people who agree to own a business
  4. Da group of businesses based on the use of a brand name

Question 36

Market Structures
Normal profits are earned when
  1. AAR= AC
  2. BMC= MR
  3. CAR>MC
  4. DAR>AC

Question 37

Production And Costs
Identify a fixed cost to a manufacturing firm
  1. Ainsurance premium on buildings
  2. Bovertime payments to workers
  3. Cthe cost of energy
  4. Dthe cost of raw materials

Question 38

Government And Market Failure
The major differentiating feature between monetary policy and fiscal policy is that
  1. Afiscal policy is implemented by the central bank while monetary policy is implemented by local authority
  2. Bfiscal policy instruments are government spending and taxes while monetary policy instruments are money supply and interest rates
  3. Cfiscal policy solves unemployment while monetary policy solves inflation
  4. Dfiscal policy is a supply side policy whilst monetary policy is a demand side policy

Question 39

Business Organisation
List the documents used in setting up a private limited company, in their order
  1. Acertificate of incorporation, memorandum of association, trading certificate
  2. Btrading certificate, certificate of incorporation, articles of association
  3. Cmemorandum of association, articles of association, certificate of incorporation
  4. Dmemorandum of association, certificate of trading, articles of association

Question 40

Population And Labour
which is the correct formula for calculating unemployment?
  1. A(unemployment/labour force ) x 100
  2. B(unemployed/total population) x 100
  3. C(labour force/unemployed) x 100
  4. D(employed/total population) x 100

More sittings of this paper

The answers, and why they are the answers

Sit the paper here to see which ones you got right. Danho explains every question, keeps your score, and works without a connection.

Get it on Google PlayDownload on the App Store