QUESTIONS

1.Distinguish between the terms expansion path and price consumption curve

2.Outline four advantages of a controlled market structure

3.Outline the features of perfectly competitive market structure

4.Define the term 'market equilibrium'

5.Outline the factors that may lead to the occurrence and persistence of a a market disequilibrium

6.Distinguish between the 'multiplier ' and the 'accelerator' as used in national income statistics

7.Explain four factors that could limit the application of the multiplier in developing countries

8.Explain five factors that determine the macroeconomies level of consumption in an economy

9.Discuss ten limitations of using national income statistics to compare the standards of living between different countries

10.Outline five problems associated with the expenditure approach of measuring the national income of a country

11.Explain four factors that limit the effectiveness of the multiplier in developing countries

12.Justify the need to estimate the national income in a country

13.Outline six challenges encounted by economic planners when estimating the national income in a developing country

14.Describe four policy measures that developing countries could adopt to reduce regional imbalances

15.Differentiate between nominal national output and 'real national output' figures in an economy