The purchasing department has analysed the number of orders placed by each of the 5 departments in the company by type for this financial year as given in the table below: Order type Sales Purchase Production Accounts Maintenance Total Consumables Equipment Special Total 10 1 0 11 12 3 0 […]

Suppose in a two commodity market model the supply and demand functions are given as: QS1 = -3 +4P1 QS2 = -18 + 4P2 Qd1 = 4 – P1 + 1/2 P2 Qd2 = 10 + P1 – P2 Required: a) Explain the relationship between the two commodities giving valid […]

In a particular life insurance office, employees Simiyu, Juki, Waithera and Baraza have a diploma, with Simiyu and Baraza also having a degree. Simiyu, Macharia, Waithera, Thuo, Mwazia and Kungu are associate members of the Chartered Insurance Institute (ACII) with Thuo and Mwazia having a diploma. Required: Identifying set A […]

Most developing countries especially the sub-Saharan African countries have not realized the full benefits from International Trade. Required: Discuss the main reasons why such countries have not realized these benefits. (12 marks) What policy measures would you recommend to help the countries realize these benefits? (8 marks)

The responsibilities of external auditors are not always well understood, especially with regard to the detection and reporting of fraud. When external auditors provide non-audit services to their audit clients, it is essential that the auditors make a clear distinction between their audit and non-audit responsibilities. Required: a) Explain the […]

(a) Using a well labeled diagram, show and explain why in a perfectly competitive market structure, when the marginal revenue equals marginal cost, this is only a necessary but not sufficient condition for profit maximization. (6 marks) (b) Bring out the salient features of a monopolistic competition market model (6 […]

Discuss some of the consequential economic impacts of high and rising rate of interest.

What factors determine the rate of interest in an economy?

(i) Outline the major differences between quantity and the Keynesian Liquidity preference theories of money demand. (5 marks) (ii) If money supply in a given economy equals 500 while the velocity and price equal 8 and 2 respectively, determine the level of real and nominal output. (3 marks)