ECONOMICS
REVISION KIT
,ii
Acknowledgment
We gratefully acknowledge permission to quote from the past examination papers of the
following bodies: Kenya Accountants and Secretaries National Examination Board
(KASNEB); Chartered Institute of Management Accountants (CIMA); Chartered
Association of Certified Accountants (ACCA).
We would like to extend our sincere gratitude and deep appreciated to Mr. Andrew Tanui for
giving his time, expertise and valuable contribution in the initial preparation of this revision kit. He
holds the following academic honors, Bachelor of Arts (Economics) University of Nairobi.
KASNEB PANEL● REVISION KIT
, iii
Contents
Acknowledgment ...........................................................................................................................ii
Part I: Introduction ........................................................................................................................v
Approach To Examinations ............................................................................................................ vi
Syllabus ................................................................................................................................... vii
Topical Guide to Past Paper Questions.............................................................................................. xi
Part II: Revision Questions and Answers ...........................................................................................1
Questions ................................................................................................................................1
Answers ................................................................................................................................ 11
Part III: Comprehensive Mock Examinations .................................................................................. 140
Questions - Mocks .................................................................................................................. 140
Answers - Mocks ................................................................................................................... 148
ECONOMICS
, Introduction v
Part I: Introduction
Although the economic orientation keeps changing, the underlying concept remains the same. This revision
kit is in recognition of the fundamental principle that economics is a development and learning is a process.
It is absolutely necessary to have a systematic approach to studies, right up to the examination. A proper
examination strategy is required irrespective of the mode of study.
The purpose of this booklet is to assist accounting students revise economics in preparation for the
KASNEB Examinations. It is not intended to be a perfect substitute of either the Distance Learning Centre
study pack or other economics reference textbooks. This kit serves no new purpose in that a serious student
ought to look at examination papers for the past few sittings and whether compelled or not write out the
answers to some of the questions in order to gain practice in self-expression.
To assist the candidate in the mastery of the subject, the explanation of questions is devoid of any economics
jargon – the language used in explaining concepts is as simple and practical as possible, and with a view to
enabling candidates to easily articulate economic issues.
Part II consists of past examination questions and model answers. The purpose of this part is to enable a
candidate appreciate the scope required in responding to specific questions in an examination context. It also
demonstrates the variety of questions and the probable layout of the expected examination paper. The way
questions have been arranged (in each topic) is not in absolute disregard for consistency but rather with a
deliberate view to avoiding monotony while maintaining the necessary state of mental activity during revision.
Part III of the booklet consists of three sets of examination questions and model answers. It is intended to
illustrate to the candidate the type of questions likely to appear in the examination in future. Each question
paper should be done under strict examination conditions. It is not advisable to refer to these examination
papers at any time before one is duly prepared to attempt them. The scope of the model answers provided is
sufficient.
ECONOMICS
REVISION KIT
,ii
Acknowledgment
We gratefully acknowledge permission to quote from the past examination papers of the
following bodies: Kenya Accountants and Secretaries National Examination Board
(KASNEB); Chartered Institute of Management Accountants (CIMA); Chartered
Association of Certified Accountants (ACCA).
We would like to extend our sincere gratitude and deep appreciated to Mr. Andrew Tanui for
giving his time, expertise and valuable contribution in the initial preparation of this revision kit. He
holds the following academic honors, Bachelor of Arts (Economics) University of Nairobi.
KASNEB PANEL● REVISION KIT
, iii
Contents
Acknowledgment ...........................................................................................................................ii
Part I: Introduction ........................................................................................................................v
Approach To Examinations ............................................................................................................ vi
Syllabus ................................................................................................................................... vii
Topical Guide to Past Paper Questions.............................................................................................. xi
Part II: Revision Questions and Answers ...........................................................................................1
Questions ................................................................................................................................1
Answers ................................................................................................................................ 11
Part III: Comprehensive Mock Examinations .................................................................................. 140
Questions - Mocks .................................................................................................................. 140
Answers - Mocks ................................................................................................................... 148
ECONOMICS
, Introduction v
Part I: Introduction
Although the economic orientation keeps changing, the underlying concept remains the same. This revision
kit is in recognition of the fundamental principle that economics is a development and learning is a process.
It is absolutely necessary to have a systematic approach to studies, right up to the examination. A proper
examination strategy is required irrespective of the mode of study.
The purpose of this booklet is to assist accounting students revise economics in preparation for the
KASNEB Examinations. It is not intended to be a perfect substitute of either the Distance Learning Centre
study pack or other economics reference textbooks. This kit serves no new purpose in that a serious student
ought to look at examination papers for the past few sittings and whether compelled or not write out the
answers to some of the questions in order to gain practice in self-expression.
To assist the candidate in the mastery of the subject, the explanation of questions is devoid of any economics
jargon – the language used in explaining concepts is as simple and practical as possible, and with a view to
enabling candidates to easily articulate economic issues.
Part II consists of past examination questions and model answers. The purpose of this part is to enable a
candidate appreciate the scope required in responding to specific questions in an examination context. It also
demonstrates the variety of questions and the probable layout of the expected examination paper. The way
questions have been arranged (in each topic) is not in absolute disregard for consistency but rather with a
deliberate view to avoiding monotony while maintaining the necessary state of mental activity during revision.
Part III of the booklet consists of three sets of examination questions and model answers. It is intended to
illustrate to the candidate the type of questions likely to appear in the examination in future. Each question
paper should be done under strict examination conditions. It is not advisable to refer to these examination
papers at any time before one is duly prepared to attempt them. The scope of the model answers provided is
sufficient.
ECONOMICS
