1.(a) Distinguish between economic activities and
an economic system.

(b) Explain the following terms:
(i) production;
(ii) distribution;
(iii) consumption.

2.(a) With the aid of a diagram, explain a
minimum price.

(b) State any five measures by which a minimum
price for an agricultural produce can be made
effective.

3.(a) Describe the output method of measuring the
gross domestic product of a country.

(b) How is the net national product at factor cost
obtained from gross domestic product?

(c) State two problems associated with the output
method.

4.(a) Explain the function of money as a
(i) measure of value;
(ii) store of value.

b) Show how inflation affects these two functions
of money.

5.(a) What is a commercial bank?

(b) Describe any four ways by which the Central
Bank controls the amount of
credit given by the commercial banks.

6.(a) Differentiate between human capital and
physical capital.

(b) State three ways of improving on the stock of
human capital in your country.