(a) Explain five advantages that may accrue to a society that is involved in trading activities. (10 marks)

(b) The following table represents the supply of potatoes for 3 months.

Explain five reasons to account for the change in quantity supplied of potatoes in the market. (10 marks)

(a) Describe the procedure of taking an insurance policy. (10 marks)

(b) Explain five characteristics of labour as a factor of production. (10 marks)

(a) Explain five reasons why the government may decide to privatize some parastatals. (10 marks)

(b) Accounts of Tembo traders showed the following balances as at 31st December 2013.

Required Open ledger accounts, record the transactions and balance off the accounts on 6th January 2014. (10 marks)

(a) Explain five benefits of an electronic filling system in an office. (10 marks)

(b) Explain five measures that a country experiencing a balance of payment deficit may take to correct this situation. (10 marks)

(a) Explain five limitations of using Consumer Price Index (CPI) to measure the level of inflation in a country. (10 marks)

(b) Using a diagram, briefly explain leakages and injections in a two sector economy. (10 marks)

(a) Explain five reasons for existence of small scale firms in the economy despite the stiff competition. (10 marks)

(b) The following information relates to Ingo Traders as at 31st December 2006.

(4 marks) ii. Net profit (3 marks) iii. Rate of stock turn over (2 marks) iv. Margin (1 mark)