Enumerate five reasons why many countries may not prefer a controlled economic system.

(b) Describe the factors that make achieving perfect competition challenging in an economy.

• (a) Describe five functions of entrepreneurs as a factor of production.

(b) Explain five limitations of using national income statistics to compare living standards in different countries.

• (a) Explain six measures that the government can take to control unemployment.

(b) Differentiate commercial banks from non-bank financial institutions, highlighting four differences.

4. (a) Identify and explain four sources of internal diseconomies of scale that can arise when individual firms increase in size beyond a certain level.

(b) Explain six factors that can affect the wages paid to employees in an organization.

5.(a) Elaborate on the positive effects of the Kenyan government's recent decision to decontrol prices of some commodities.

(b) Explain six monetary measures that a country can take to reduce inflation.

6. (a) Explain five reasons why the demand curve may shift outward.

(b) Describe five principles that should guide public expenditure.

7. Justify progressive tax on four grounds, and explain six factors that determine the elasticity of supply.

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The detailed answer for the above question is provided below ANSWERS 1 a Reasons why many countries may not prefer a controlled economic system Lack of Efficiency Controlled economies tend to be less ... View the full answer