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P220/2

ECONOMICS
Paper 2
AUGUST, 2019
3hours

JINJA JOINT EXAMINATIONS BOARD

Uganda Advanced Certificate of Education

MOCK EXAMINATIONS – AUGUST, 2019

ECONOMICS

Paper 2

3 hours

INSTRUCTIONS:
Answer Five Questions in All.
Section A is Compulsory. Answers to questions in this Section Should be concise.
Answer four questions in section B.
All questions in section B carry equal marks
Credit will be given for the use of relevant diagrams and illustrations.

SECTION A (2 MARKS)

1. (a) Mention any four merits of the economic system in Uganda (4marks)
(b) (i) Define operating cost of production. (1 marks)
(ii) Give any three effects of operating cost of production in Uganda. (3marks)
(c) (i) Distinguish between technology transfer and technology development.
(2makrs)
(ii) Mention any two factors limiting the development of technology in
Uganda. (2marks)
(d) (i)Differentiate between stagflation and suppressed inflation (2marks)
(ii)Give any two costs of stagflation in Uganda. (2marks)

(e) (i)Define currency depreciation. (1mark)


(ii)Given that the exchange rate of Ugandan shilling for US, dollar is shs. 3720 for
1$, calculate the new exchange rate after the depreciation of the
shilling by 5%.
(3 marks)

SECTION B (80 MARKS)

2. (a) Distinguish between per capita income and disposable income. (4marks)
(b) Account for the uneven income distribution in Uganda. (16 marks)

3. (a) Why is there is need to promote small scale industrialisation in Uganda? (10
marks)
(b) Examine the challenges facing the industrial sector in Uganda. (10 marks)

4. (a) Describe the features of the private sector in Uganda. (10 marks)
(b) Discuss the role of the private sector in the economic development of
Uganda. (10 marks)

5. (a) What is meant by “tools of monetary policy?”(4marks)


(b) Explain the tools of monetary policy used by the central bank to control inflation
in Uganda. (16 marks)

6. (a) Examine the causes of unemployment in Uganda. (10 marks)


(b) Explain the measures that have been taken to reduce unemployment problem in
Uganda. (10 marks)
7. (a) Distinguish between taxable capacity and taxable base. (4makrs)
(b) Assess the impact of taxation in Uganda. (16 mark)

© 2019 Jinja Joint Examinations Board


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