P.O.B Notes
1. It involves Economic Systems and Government Control of Business Activity.
(a) List TWO types of economic systems. (2mks)
(b) Explain the differences between the types of economic systems listed in (a) above. (4mks)
(c) Suggest two ways by which the government of your country can control business activity. (4mks)
(a) Any two types of economic systems can be listed, for example, the free economic system and the planned economic system. This part of the question does not require any expansion or explanation.
(b) The characteristics or features of the economic systems listed can be used to show the differences between them.
Conjunctions such as whereas, on the other hand, while and however should be used to indicate your reference to the opposite feature for the other economic system. For example, in the free economy, most of the scarce resources are owned and allocated by private individuals and firms while in the planned economy, scarce resources are owned and allocated by the government.
The marks allotted for this part of the question would indicate that a minimum of two differences is required.
(c) Governments’ control of business activity can come in many forms including:
* Legislation The passing of laws that businesses should abide by.
* Price controls Government stated maximum prices for selected goods and services
* Nationalisation Direct ownership and control of industries by the Government, for example, where monopolies are exploiting consumers.
* Increased taxation To reduce monopoly profits.
Registration and other legal requirements for setting up of businesses.
* Employment of inspectors to monitor the affairs of businesses e.g. price inspectors and sanitary inspectors.
* Setting up of government agencies such as The Bureau of Standards to monitor the quality of goods produced and imported.
Remember, you are asked to suggest only two ways.
(a) List TWO functions of a business. (2 marks)
(b) Briefly describe TWO of
(a) List TWO types of economic systems. (2mks)
(b) Explain the differences between the types of economic systems listed in (a) above. (4mks)
(c) Suggest two ways by which the government of your country can control business activity. (4mks)
(a) Any two types of economic systems can be listed, for example, the free economic system and the planned economic system. This part of the question does not require any expansion or explanation.
(b) The characteristics or features of the economic systems listed can be used to show the differences between them.
Conjunctions such as whereas, on the other hand, while and however should be used to indicate your reference to the opposite feature for the other economic system. For example, in the free economy, most of the scarce resources are owned and allocated by private individuals and firms while in the planned economy, scarce resources are owned and allocated by the government.
The marks allotted for this part of the question would indicate that a minimum of two differences is required.
(c) Governments’ control of business activity can come in many forms including:
* Legislation The passing of laws that businesses should abide by.
* Price controls Government stated maximum prices for selected goods and services
* Nationalisation Direct ownership and control of industries by the Government, for example, where monopolies are exploiting consumers.
* Increased taxation To reduce monopoly profits.
Registration and other legal requirements for setting up of businesses.
* Employment of inspectors to monitor the affairs of businesses e.g. price inspectors and sanitary inspectors.
* Setting up of government agencies such as The Bureau of Standards to monitor the quality of goods produced and imported.
Remember, you are asked to suggest only two ways.
(a) List TWO functions of a business. (2 marks)
(b) Briefly describe TWO of