CENTRE FOR LANGUAGES AND INTERNATIONAL EDUCATION
Date: 21 8.6.2021
Candidate Number ………Will be assigned..……
UNDERGRADUATE PREPARATORY CERTIFICATE IN THE HUMANITIES
2020-21
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informed anyone else about any part of this examination. Answer via Moodle ONLY.
FINAL EXAMINATION – ECONOMICS (70% of the grade)
Time allowed: 3 hours 90 minutes
Marks 100 52
PLEASE READ THE FOLLOWING INSTRUCTIONS BEFORE YOU BEGIN
1. Spend a few minutes reading through fully.
2. You may not use a dictionary or calculator.
3. Answer all five questions. Not all have choice.
4. Interpret diagrams where necessary. Refer to diagrams where necessary.
You need not send any.
5. Read all questions carefully. Plan your answers. Plan your time! Use the
marks as a rough guide to allocate time to each question.
6. Follow the UPCH Coordinator’s exam advice. Type out your answers in full.
Don’t copy-paste. You will be rewarded for material as taught in UPCH
Economics.
7. You should log on and find the Final by the UPCH procedure. Your examiners
will mark by a number, not name.
ANSWER ALL FIVE QUESTIONS!
1. Multiple choice.
Q. 1a)
5 marks
a) Name the flows and the missing sector
3 marks
b) Calculate the two flows
2 marks
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
(viii)
(ix)
(iv)
(vii)
2. Write short notes on any four two:
6 marks each = 24 12 marks
a) PPF
b) Excess demand
c) Indirect taxes
d) Real flows and money flows
3. Answer all three both parts.
18 9 marks
a) Briefly discuss the term ‘elasticity’. Does it refer to both demand and
supply?
(2+2)
b) Assume a linear demand curve. Discuss its elasticity.
(5 )
4. Answer all three parts.
18 10 marks
a) What do you understand by the identity Y=Q=E?
(4)
b) Is it useful to measure national income by the expenditure approach? (3)
c) Discuss the effect of real Investment on national income.
(3)
5. Answer any three two of the following:
8 marks each = 24 16 marks
a) What are ‘diminishing marginal returns to a factor’? Does this
technical concept have any practical value?
(6 + 2 )
b) Imagine a money market at equilibrium. How much of the model is
endogenous and how much exogenous? Explain.
(3 + 5)
c) Assume our economy is at equilibrium. Foreign countries are suffering a
health emergency. They buy only medicines and have greatly reduced
their purchase of other goods made abroad. Explain the effect on our
economy.
d) The financial sector is not one of the four sectors in the circular flow of
income and payments. It does not occur in the assets market model. Yet it
helps both. Discuss.