Danho
ZIMSEC O Level · 4050/1 · N2021

Economics Paper 1 November 2021

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

Environment And Climate Change
The following are mitigating measures for climate change except
  1. Awater harvesting
  2. Bafforestation
  3. Cirrigation
  4. Ddeforestation

Question 2

Basic Economic Problem
The basic economic question of how to produce refers to
  1. Athe method of production used.
  2. Btype and combination of goods produced.
  3. Ctarget consumers meant to enjoy the products.
  4. Dtime and period taken by the production process.

Question 3

Economic Systems
Which one of the following is a feature of free market economy?
  1. AThere is freedom of choice and enterprise.
  2. BThe government provides public and merit goods.
  3. CThere is equitable distribution of income and wealth.
  4. DThe government employs most primary sector workers.

Question 4

Business Organisation
In a partnership business decisions are made by
  1. Adirectors.
  2. Bmanagers.
  3. Cpartners.
  4. Demployees.

Question 5

Population And Labour
Productivity of labour is
  1. Aoutput per unit of labour employed.
  2. Boutput per unit of capital employed.
  3. Coutput per unit of land used.
  4. Doutput per unit of technology used.

Question 6

Business Organisation
A document which invites the general public to buy shares in a public limited company is
  1. Aan articles of association.
  2. Ba memorandum of association.
  3. Ca prospectus.
  4. Da certificate of incorporation.

Question 7

Demand And Supply
What is effective demand?
  1. AThe desire to purchase a good.
  2. BThe willingness to buy a product.
  3. CUnits of a good that consumers are willing to purchase.
  4. DThe desire to purchase a good backed by the ability to pay.

Question 8

National Income And Growth

The table shows the GDP and population of four countries.

Which of the following countries has the highest GDP per capita?

  1. ABotswana
  2. BZambia
  3. CSouth Africa
  4. DZimbabwe

Question 9

International Trade
What is the effect of a country imposing import tariffs?
  1. Aincreased export prices
  2. Bincreased import prices
  3. Creduced government revenue
  4. Dincreased quantity of imports

Question 10

Population And Labour
What is unemployment?
  1. Apeople of working age who are unwilling to work
  2. Bthe number of people who are under 18 and above 65 years who are willing to work but are not able to find a job
  3. Cthe number of people who are actively looking for work but are currently without a job
  4. Dthe number of unemployed labour force expressed as a percentage of the total labour force

Question 11

Population And Labour
Cyclical unemployment is reduced by
  1. Acapital intensive to increase productivity.
  2. Blabour intensive to increase productivity.
  3. Cdecrease in income tax.
  4. Dincrease in income tax.

Question 12

Population And Labour
Population is
  1. Athe total number of people in a country.
  2. Bthe total number of all economically active people in the country.
  3. Cthe total number of all children in the country.
  4. Dthe total number of employed and unemployed people in the country.

Question 13

Inflation
Inflation is defined as
  1. Aa continuous fall in the level of prices in an economy.
  2. Ba continuous fall in the level of economic activities.
  3. Ca general and continuous rise in the level of prices of goods and services.
  4. Da general and continuous rise in the level of economic activities.

Question 14

Money And Banking
One of the functions of the commercial bank is
  1. Alender of last resort.
  2. Bissuing notes and coins.
  3. Cbanker of other banks.
  4. Dgiving loans to individuals.

Question 15

National Income And Growth
Which of the following is a limitation of Gross Domestic Product (GDP)?
  1. AExports
  2. BImports
  3. CUnderground economy
  4. DOver borrowing by the government

Question 16

Business Organisation
Which of the following statements illustrates vertical forward integration?
  1. AA fast food outlet acquiring a chicken rearing farm business.
  2. BA chicken rearing farm business acquiring a fast food outlet.
  3. CA shoe manufacturing firm acquiring a chicken rearing farm business.
  4. DA fast food outlet acquiring another fast food outlet.

Question 17

Market Structures
The demand curve for a perfect competitive firm is
  1. Aperfectly elastic.
  2. Bperfectly inelastic.
  3. Cdownward sloping.
  4. Dunitary.

Question 18

Production And Costs
What is meant by productive efficiency?
  1. AProducing at the lowest point of the long run ATC curve.
  2. BProducing goods that meet consumer tastes and preferences.
  3. CProducing large quantities of goods and services.
  4. DProducing goods at a large scale.

Question 19

Price Determination And Controls
One argument for setting a maximum price below equilibrium price is
  1. Ato increase inflation.
  2. Bto make the product affordable.
  3. Cto increase revenue to producers.
  4. Dcreate employment.

Question 20

Demand And Supply
What is the effect of climate change on the supply of agricultural products?
  1. Asupply curve shifts to the left
  2. Bsupply curve shifts to the right
  3. Cextension of supply
  4. Dcontraction of supply

Question 21

Government And Market Failure
Which one of the following is an example of negative externality?
  1. Aair pollution from production activities
  2. Bunemployment benefits
  3. Ctreatment of Covid-19 patient
  4. Deducation and training

Question 22

National Income And Growth
Economic growth is caused by the following except
  1. Adiscovery of new mineral deposits.
  2. Beducation and training of labour force.
  3. Cexhaustion of non-renewable resources.
  4. Dinvestment in capital goods.

Question 23

International Trade

A country recorded the following in its international trade records.

Calculate visible balance

  1. A$25 million.
  2. B$30 million.
  3. C$40 million.
  4. D$65 million.

Question 24

Population And Labour
Unemployment in industries where demand for labour changes at certain times of the year is
  1. Aregional.
  2. Btechnological.
  3. Ccyclical.
  4. Dseasonal.

Question 25

Population And Labour
The study of population is
  1. Ademography.
  2. Bgeography.
  3. Cpopulation density.
  4. Dcensus.

Question 26

Money And Banking
Which of the following is the central bank in Zimbabwe?
  1. ACABS
  2. BCBZ
  3. CP.O.S.B
  4. DR.B.Z

Question 27

National Income And Growth
Which of the following is a correct expression to calculate Gross Domestic Product (GDP)?
  1. AC + G + I + X + M
  2. BC + I + G + X - M
  3. CC + I + G - X - M
  4. DC - I - G - X + M

Question 28

Basic Economic Problem
All economic agents make a choice because of
  1. Aexcess supply.
  2. Blimited wants.
  3. Cscarce resources.
  4. Dunlimited resources.

Question 29

Economic Systems
Which feature describes a command economy?
  1. APrivate sector firms plan the allocation of resources
  2. BConsumers determine the allocation of resources
  3. CMarket forces allocate resources
  4. DGovernment allocates the use of available resources

Question 30

Production And Costs
One advantage of specialisation is that
  1. Amore goods are produced.
  2. Bmore resources are used in the production process.
  3. Cmore costs are incurred in the production process.
  4. Dmore time is required to complete a task.

Question 31

Production And Costs
Which of the following is not a factor of production?
  1. Acapital
  2. Bclimate
  3. Clabour
  4. Dland

Question 32

Population And Labour
The process of negotiating wages and working conditions between trade unions and employers is called
  1. Asingle agreement
  2. Bopen shop agreement
  3. Cclosed shop agreement
  4. Dcollective bargaining

Question 33

Elasticity
If price elasticity of demand (PED) for bread is unitary, a change in price results in
  1. Atotal revenue remaining constant.
  2. Btotal revenue increasing.
  3. Ctotal revenue decreasing.
  4. Dtotal revenue being equal to one.

Question 34

Demand And Supply
Which of the following goods are in competitive demand?
  1. Acars and petrol
  2. Bjam and bread
  3. Cmilk and yoghurt
  4. Dbutter and jam

Question 35

Inflation
Which one of the following is a cause of inflation?
  1. AAn increase in the cost of raw materials.
  2. BA decrease in the cost of raw materials.
  3. CA decrease in wages.
  4. DAn increase in subsidies.

Question 36

Demand And Supply
The law of supply states that
  1. Amore quantity is supplied at higher price than at a lower price.
  2. Bmore quantity is supplied at lower price than at a lower price.
  3. Ca higher price signifies the quantity of the product.
  4. Da high price of the product is a barrier to other suppliers.

Question 37

Demand And Supply
Which of the following is a determinant of demand for bread?
  1. ADrought
  2. BDisposable income
  3. CCost of production
  4. DChange in technology

Question 38

Elasticity
The demand for matches for fire making is inelastic because
  1. Ait is of less use in our lives.
  2. Bit is sold in many outlets.
  3. Cit is demanded by fewer consumers.
  4. Dit takes a small proportion of consumers incomes.

Question 39

Production And Costs
Which of the following is not a capital resource?
  1. Aseed
  2. Bcomputer
  3. Ccombine harvester
  4. Dhousehold television

Question 40

Entrepreneurship And Business Planning
Which of the following is not a component of a business plan?
  1. ABusiness culture
  2. BExecutive summary
  3. CFinancial forecast
  4. DMarket analysis

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