MOKASA Joint Evaluation Examination Business Paper 1 2016- Pre MOCK

-Level of wages of the consumer
-Taxes on income
-Value of money/inflation/foreign exchange rate
-Prices of other related goods

-Good Hygiene
-Proper Posture
-Acceptable/good moral behavior
-Good health
-Good Physical appearance

-Lack of or limited government support
-Deficiency of capital to finance their activities
-Ignorance of consumers against their rights
-Reluctance of many consumers to join the organization
-Lack of consumers initiative to check on traders compliance on price and quality

-Source of revenue
-Used to control the entry of harmful products into the country
-Government is able to control the quality of goods entering the country
-Government is able to verify documents of goods on transit
-The government is able to inspect the nature or type of goods imported
-Government is able to check on illegal goods entering the country

1. Derived demand and joint demand (2 marks)

   Joint demand-(Complimentary demand) applies to  those commodities used together e.g  vehicle and petrol whereas derived demand is where demand of one commodity is due to demand of another commodity eg demand for input is as a result of demand of finished products

2. Shift and movement along demand curve (2marks)

   Shift in the demand curve is due to change in demand of a commodity caused by factors other than price of that commodity whereas movement in the demand curve is a change in demand caused by changes in price of the commodity.

-Geographically = exported goods are sold at cheaper price in the country of manufacture than in foreign country.
-Time-peak and off peak
-Type of demand eg demand for electricity of domestic use and commercial use
-Income eg in hospitals

-Increase in the bank rate
-Buying of government securities in the open market
-Increase cash or liquidity ratio
-Increase in compulsory deposit requirement
-Selective credit control
-Reduce margin requirement
-Request commercial banks to control credit.

-Human wants are unlimited and yet resources used to satisfy them are scarce.
-Consumers make a list of wants in order of priority hence making a choice between the competing alternatives
-Having made a choice, the foregone alternative becomes the opportunity cost for the need that has been satisfied.

-Letter of inquiry
-Local purchase order
-Goods received note
-Goods returned note
-IOU

-Unroadworthy vehicles have been removed hence reducing road accidents
-Use of speed limiter has reduced road accidents
-Carrying capacity has been limited hence reducing overloading and uncomfortability
-PSV are operated by people with certificates of good conduct comfortable of customers/there is order
-Drivers and conductors have uniforms that help in identifying them
-Yellow lines help identify PSV by their users
-Use of alcoblows has helped reduce the effect of drunk driving hence reducing accidents.
-Requirement that all PSVs be members of a SACCO for order, discipline and proper management of PSVs. Passengers can take their complains to the Sacco.

-Competing tool
-If the market is concentrated in one place
-If the product is heavy to avoid the cost of transportation
-The product is perishable
-It may be due to Government policy

-Taxation
-Saving
-Imports

-It’s a store of value
-A standard of deferred payment
-It’s a measure of value
-Unit of account
-Facilitate the transfer of immovable property

1. 1^st January 2015, took a loan with ICDC of kshs. 50,000 receiving by cheque.
2. 5^th January 2015, kelunyo, a debtor paid his account of kshs. 40,000 in cash.
3. 10^th January 2015, took money from bank, kshs. 50,000 for office use
4. 12^th January 2015, bought furniture kshs. 35,500 in cash
   
   

 i) To improve efficiency in their management.
ii) To generate revenue for the government
iii) Help to avoid unnecessary expenses/avoid wastage of resources
iv) To meet donors conditions when soliciting for funds/foreign aid
v) Helps to improve the quality of goods being produce as it leads to competition among investors
vi) Helps to attract investors who will start similar firms.
vii) Helps to reduce government expenditure curbing inflation.

 i) Medium used should be appropriate
ii) Language used must be simple to understand
iii) Information overload should be avoided
iv) Both the sender and the receiver must have positive attitude while communicating.
v) It must be free from distortion
vi) Environment should be free from noise
vii) Message should get to the intended recipient in good time.
viii) The sender should have adequate knowledge of information being conveyed.

 i) It may be costly.
ii) Some middlemen may keep away the gift
iii) There is no assurance that the prospective customer would buy the product after getting the gift.
iv) In an effort to get the gift,a customer may end up buying what he/she doesn’t want/had not budgeted for.

 i) Transport cost
ii) Product promotion expenses
iii) Salaries and wages of workers
iv) Packaging, blending and branding cost.
v) Insurance costs
vi) Storage charges

 i) May be progressive hence equitable
ii) Simple to understand to both taxpayer and tax collector
iii) Convenient to both tax payer and tax collector as time for collection is known.
iv) Can be used to counter inflation.
v) High revenue earning capacity as it expands naturally with economic growth.i.e elastic
vi) May be used to redistribute wealth and resources equally.
vii) Certain to both tax payer and tax collector.

1. Government initiating irrigation projects to ensure continuous production of food

   Seasonal unemployment

2. Retraining teachers to embrace use of technology in teaching and learning

   Structural unemployment

3. Government and private sectors inventing job advertisement sites for easy access by job seekers

   Frictional/involuntary unemployment

4. Parliament passing legislation that accommodate the disabled people to acquire jobs

    Residual unemployment