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1. B.pores
2. C.sire
3. A.wart
4. B
5. A
6. B
7. A
8. C
9. C
10. A
11. C
12. C
13. B
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20. A
21. A
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23. D
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25. B
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30. C
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32. C
33. B
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35. C
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39. D
40. C
41. B
42. C
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*7. (a) (i) Define dumping of goods*
*Dumping* is the act of exporting goods to another country at a price lower than their normal value, often below production cost, to gain market share and eliminate local competition.
*7. (a) (ii) Explain how each policy measure can curb dumping*
*1. Embargo:*
A total ban on the importation of certain goods prevents foreign firms from dumping products, protecting local industries.
*2. Import quota:*
Setting a limit on the quantity of goods that can be imported reduces excessive inflow of dumped goods, allowing local businesses to compete fairly. *
*7. (b) Explain how granting subsidy can address unemployment caused by dumping (Use diagram)*
*Explanation:*
Subsidies lower production costs for local firms, allowing them to reduce prices and compete with dumped imports. This helps firms stay in business and retain or even hire more workers, reducing unemployment.
*Diagram:*
Include a supply and demand graph showing the shift in supply curve (rightward) due to subsidies, leading to higher output and employment.
*8. (a) What are natural resources?*
Natural resources are materials or substances found in nature that are used to support life and economic activity, such as water, minerals, forests, and fossil fuels.
*8. (b) Three benefits of natural resources*
1. *Revenue Generation:* Export of natural resources earns foreign exchange.
2. *Job Creation:* Mining, agriculture, and forestry create employment.
3. *Industrial Growth:* Resources serve as raw materials for local industries.
*8. (c) Three negative effects of exploiting mineral resources*
1. *Environmental degradation:* Mining leads to deforestation, water pollution, and land destruction.
2. *Displacement of communities:* People may be relocated to make way for mining projects.
3. *Overdependence:* Economies may rely too heavily on minerals, ignoring other sectors.
*Question 3*
*(a) Define a socialist economy.*
A socialist economy is an economic system in which the means of production and distribution are owned and controlled by the state or public, with the aim of achieving equality and meeting the needs of all citizens.
*(b) Outline any three characteristics of a capitalist economy.*
1. Private ownership of resources.
2. Profit motive drives production.
3. Minimal government intervention (laissez-faire).
4. Competition among businesses.
5. Consumer sovereignty (choices drive demand).
*(c) Explain any three advantages a mixed economy has over a market economy.*
1. Combines efficiency of capitalism with social welfare of socialism.
2. Government can regulate monopolies and protect consumers.
3. Reduces income inequality through public services.
4. Encourages both private initiative and public interest.
5. Protects strategic sectors (like health and defense).
---
*Question 4*
*(a) State four features of sole proprietorship.*
1. Owned by one person.
2. Owner bears all profits and losses.
3. Easy to set up and dissolve.
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