at the end of each question or part question.
You are reminded of the need for good English and clear presentation in your answers.
1 (a) Explain how the basic economic question are answered in a free market economy. 
(b) Discuss the benefits to society of a command economy changing to a market economy. 
2 (a) Explain
(i) price elasticity of demand,
(ii) income elasticity of demand,
(iii) cross elasticity of demand, 
(b) Discuss the relevance of elasticity of demand concepts to holiday resorts in Zimbabwe. 
3 (a) Explain
(i) economist’s view of profit,
(ii) accountant’s view of profit,
(iii) normal profit. 
(b) To what extent does profitability of the firm measure its efficiency? 
4 (a) Using relevant examples from your country, distinguish between an oligopoly firm and a monopoly firm. 
(b) Discuss the benefits of a monopoly firm to the society. 
5 (a) Explain how the Liquidity Preference Theory determines interest rate. 
(b) To what extent does the Liquidity Preference Theory explain the interest rate determination in your country? 
6 (a) Explain how the price index of measuring the value of money is constructed. 
(b) Assess the effects of inflation in an economy. 
7 (a) Explain the reasons for imposing trade barriers. 
(b) Assess the effectiveness of the ways used to protect trade in your country.