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Economics Paper 2, May/June 2009  
Questions: 1 2 3 4 5 6 7 8 9 10 11 12 Main
General Comments
Weakness/Remedies
Strength



































Question 2

A village consists of twenty (20) households with the following annual incomes:

(Incomes $00)

30

20

50

40

60

40

40

50

20

60

80

40

20

20

70

40

70

30

40

80

(a) Determine the

(i) mean income;

(ii) modal income;

(iii) median income.

(b) What is the range of the income distribution?

(c) Calculate the total tax that could be generated from the village if

(i) a flat rate tax of 7% is imposed on all households;

(ii) a flat rate tax of 15% is imposed on all households earning $4,000 per annum and above.

_____________________________________________________________________________________________________
Observation

Although, the question was a bit popular with the candidates, very few of them performed very well in it.  Most candidates failed to score good marks in this question because they could not realize that the figures in the table were based on hundreds therefore, they could not work out the figures as required.  On the whole, the general candidates’ performance in the question was below average.

In order to score good marks is the question; candidates were expected to present heir answers as follows..

(a)(i)  30 + 20 + 50 +  40 + 60 + 40 + 40 +50 + 20 + 60 + 80 + 40
                                    20 + 20 + 70 + 40 + 70 + 30 + 40 + 80
                                                               20

                                =     900
                                        20               =    45

                                 Mean  Income   =   $4, 500

(ii) Modal Income             =   $4, 000

(iii)   Median Income   =    20,20,20,20,30,30,40,40,40,40,
                                                         40,40,50,50,60,60,70,70,80,80

                                          Using middle values    =   40 + 40         =     80
                                                                                          2                      2

                      Median Income  =   $4, 000.

(b)      Range   =    $8,000 - $2,000   =   $6,000

(c)  (i)   $90, 000  X                      =  $6, 300
                                  100

(c)          (i)       Early or late marriages.  Early marriages increase birth rates while late
                         marriages reduce it.
(ii)      The higher the number of females in a population, the higher the birth rate
           and vice versa.

(iii) Population control methods and campaigns can also reduce birth rates.

(iv) Improved medical facilities increase birth rates, etc.

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