KCSE Business Studies Topical Questions and Answers

Factors influencing decisions on what goods and services to produce

30/3/2022

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Factors influencing decisions on what goods and services to produce.

Profitability – people produce goods whose return are faster and higher
Government policy – Trade produce goods that are allowed by the laws of the country
Availability of resources – Goods produces should be the one that have adequate resources
Level of competition – People produce goods whose competition is not there as compared with the one that have shift competition
Market – Goods which have market are greatly produced
Cost of production – Goods and services produce should be cheaper in terms of overall cost

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The Manager of ENOOSAEN Sugar Company has vowed improve the company’s yield by 60% through labour motivation. State four ways by which he can achieve this.

5/11/2021

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The Manager of ENOOSAEN Sugar Company has vowed improve the company’s yield by 60% through labour motivation. State four ways by which he can achieve this.

Ways of labour motivation

Provision of adequate facilities.
Ensure proper remuneration.
Offer fringe benefits e.g lunch, trips etc.
Encourage positive competition.
Provide recreational facilities.
Training of workers.
Promote good working conditions.
Involve workers in decision making process.
Allocate duties according to areas of specialization.
Promote workers on merit.
Promote awards/rewards/gifts for good work attained.
Paying the workers promptly.
Provide them with job security.
Encourage team work.

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Highlight any four drawbacks of specialization

18/9/2021

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Drawbacks of division of labour

Leads to monotony resulting to boredom
Hinders creativity since people work mechanically
May create unemployment since most of the work is done by machine
May make a worker dependent on one trade
Makes a country dependent on other countries
May create problems such as crime and prostitution since people are together
Lack of pride in the final product
If a few people stop working due to a technical fault such as power failure, the whole process of production stops.

Highlight any four drawbacks of specialization

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Explain five benefits that may accrue to a country with a large proportion of skilled labour force.

21/12/2020

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Explain five benefits that may accrue to a country with a large proportion of skilled labour force.

Benefits that may accrue to a country with a large proportion of skilled labour force Include :

Saving on foreign exchange that would have been used to pay expartriates/imported labour.
Production of high quality goods/services as the workers are experts in their respective areas.
Increased output of goods/services as the workers are competent due to exploitation of resources.
Reduction in cost of production since the labour tends to be efficient/less wasteful.
Increase in purchasing power/demand due to higher incomes/salaries earned.
Reduction in dependency ratio since the employment rate is higher.
Enhances creativity/innovation/research leading to new/improved/variety of goods? services.
Promotes specialization/division of labour leading to faster production.
Easen/simplify setting of wage/employment policy due to abundance/availability of skilled labour/may reduce labour stife/unrest.
Increased government revenue due to income taxes levied.
Increased foreign exchange due to export of skilled labour.
Enhances entrepreneurial culture since skilled labour is more willing to undertake risks.
Adaptability/flexibility as they are ready to embrace changes

Explain five benefits that may accrue to a country with a large proportion of skilled labour force.

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Outline four positive effects that production activities may have on community health.

21/12/2020

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Outline four positive effects that production activities may have on community health.

Positive effects that production activities may have on community health include:

Provision of safe products.
Provision of clean water.
A source of income which can be used to access medical services.
Provision of labour/occupation which leads to reduced stress and a chance to keep fit while working.
Provision of health facilities as a social responsibility.
Provision of recreational facilities.
Provision of health education to fight against diseases.
Provision of sewerage disposal plants which boosts community sanitation.
Planting trees

Outline four positive effects that production activities may have on community health.

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The participants in a two sector economy are households and firms. Identify the relevant participant in each of the statements given below:

21/12/2020

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The participants in a two sector economy are households and firms. Identify the relevant participant in each of the statements given below:

(a) Households.
(b) Households.
(c) Firms.
(d) Firms.

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Explain five benefits of division of labour to an organization.

20/12/2020

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Explain five benefits of division of labour to an organization.

Benefits of division of labour to an organization include:

Less time is spent in completing a job - there is less movement by workers while changing from doing one work to another.
Increased production- people become more adept at their jobs as they do it repeatedly hence increasing productivity.
Standardized goods - goods produced are of uniform quality which enhances customer satisfaction and the firm’s image.
Increased use of machines - work can be automated leading to lower costs of production.
Enhanced management - this facilitates control, co-ordination and accountability.
High quality goods produced - people concentrate in doing jobs for which they are best suited which improves quality of output.
Increased creativity and innovation - the organization may tap workers talents and skills which may help to modify existing products, develop new products, initiate new methods of production or discover new markets.
Improved efficiency due to better use of resources.

Explain five benefits of division of labour to an organization.

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Outline four features of indirect production.

20/12/2020

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Outline four features of indirect production.

Features of indirect production include:

Goods are produced for sale.
Goods are produced in large quantities.
There is specialization in production.
High quality goods are produced.
Modem technology is extensively used.
Promotes interdependence.

Outline four features of indirect production.

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Indicate the reward associated with each of the factors of production in the table below.

16/12/2020

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Indicate the reward associated with each of the factors of production in the table below.

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In the spaces provided below, indicate the type of utility created by each of the following commercial activities:

15/12/2020

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In the spaces provided below, indicate the type of utility created by each of the following commercial activities:

Type of utility created in each case is:

Possession
Place
Time
Form

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State factors that may affect the geographical mobility of labour ( 4 mks)

14/12/2020

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State factors that may affect the geographical mobility of labour

Factors that may affect the geographical mobility of labour include:

Unfavourable climatical conditions
Language barriers
Job security
Relocational costs
Inadequate information about job opportunities elsewhere
Social tips/relatives/family
Security of the place
Political stability
Government policy (immigration rules)
Age
Social amenities (Schools, hospitals)
Cost of living
Availability of infrastructure
Rewards (salaries)

State factors that may affect the geographical mobility of labour ( 4 mks)

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Name two occupations that relate to each of the production activities given below: (3 marks)

13/12/2020

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Name two occupations that relate to each of the production activities given below: (3 marks)

Expected Response

Occupations that relate to the production activities are:

(a) Extraction:
- (i) mining.
- (ii) fishing.
- (iii) lumbering.
- (iv) fanning.
(b) Construction:
- (i) bridge making
- (ii) road construction.
- (iii) ship building.
- (iv) masonry.
(c) Direct services:
- (i) hairdressing.
- (ii) teaching.
- (iii) health care.
- (iv) entertaining.

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State four advantages of division of labour. (4 marks)

13/12/2020

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State four advantages of division of labour.

Advantages of division of labour.

Development of individual skills.
Increased output.
Production of standardized goods.
Maximum use of machinery.
Development of new talents.
Encourages invention/innovation.
Saves time.
Less use of mental and physical effort.
High quality goods/services produced /offered.
Increases employment opportunities.
Reduces training time.
Facilitates planning and management.

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Highlight four factors that could influence mobility of capital as a factor of production. (4mks)

11/12/2020

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Highlight four factors that could influence mobility of capital as a factor of production.

Vertical Divider

Factors that may influence mobility of capital include

Different uses in which capital can be put to/ degree of specialization
Amount of capital available
Skills of knowledge available to operate capital
Government policy
Government goodwill ( support)
Time taken to modify
Reward offered
Security in the new location
Nature of capital ( fixed or liquid)
Cost of moving the capital
Time the capital has been in the current use
Infrastructure

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State four ways in which production activities may negatively impact on community health.

11/12/2020

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State four ways in which production activities may negatively impact on community health.

State four ways in which production activities may negatively impact on community health.

Air pollution cause airborne diseases
Water pollution causes water borne diseases
Congestion – Congestion created as more people come to look for work ( job)
Noise – pollution – causing haring facilities- demand for health facilities increase
Solid waste pollution – causing many diseases
Environmental degradation- This may lead to health problems
Social evils e.g immorality
Occupational hazards
Unhealthy production
Global warming

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List four types of utility and the production activity associated with each of them. (4 marks)

7/12/2020

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List four types of utility and the production activity associated with each of them.

Types of utility and the production activity associated with each of them.


	Utility	Production activity
(i)	Time	Warehousing /storage
(ii)	Place	Transport
(iii)	Form	Manufacturing/processing/construction
(iv)	Possession	Trade/exchange

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The table below shows some of the occupations in production. Indicate the level of production associated with each of the occupations. (4mks)

6/12/2020

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The table below shows some of the occupations in production. Indicate the level of production associated with each of the occupations.

Occupation Level of production
a) Mining _________________
b) Oil refining _________________
c) Insurance _________________
d) Teaching _________________

Levels of production

(a)Levels of production
(b)Secondary
(C)Tertiary

The table below shows some of the occupations in production. Indicate the level of production associated with each of the occupations.

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Outline four characteristics of services. (4 marks)

4/12/2020

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Characteristics of services

Difficult standardize/ heterogeneous give to varying quality/ quality cannot be uniform (from time to time) may be offered by sufficient people.
Service cannot be stored for future! service is only consumed at the time it is being offered/service capacity cannot be stored.
Service cannot be touched! it is intangible! invisible can only be felt/ experienced
Services cannot be separated from service properties the provider must directly offer the service to the user
Service is perishable service can only be enjoyed at the time the provider is available! it expires after it is provided.
Services cannot be owned by the buyer! ownership cannot be transferred as the buyer only pays for the experience
Services! have utility to satisfy wants.
Services are mobile since they can be received! provided at different places/ locations

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State four features of land as a factor of production. (4 marks)

27/11/2020

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Features of land as a factor of production

Features of land as a factor of production include:

It is a natural resource.
It is fixed in supply.
Its productivity can be varied by varying the inputs.
It lacks geographical mobility.
It is subject to the law of diminishing returns.
Its quality is not homogeneous.
It is a basic factor of production.
It is occupationally mobile.
It’s reward is rent / rates.

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Highlight four indicators of economic growth that may be observed as a country progresses. (4 marks)

25/11/2020

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Indicators of economic growth that may be observed as a country progresses

Indicators of economic growth that may be observed as a country progresses include:

Increasing national income.
increasing national output/GDP.
Improved infrastructure.
Improvement in the provision of health facilities.
Increased education opportunities.
increasing life expectancies.
Improved housing for the population.
Provision of more social amenities for leisure e.g. stadia.
improved standards of living for the citizens.
Increased per capita income.
Increased employment opportunities.
Reduced dependency ratio/self employment.
Reduced income disparities.
Reduction of negative cultural practices.
Good governance/democracy.

Highlight four indicators of economic growth that may be observed as a country progresses

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Identify the level of production into which the following workers belong:

31/5/2020

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Answer

Levels production ¡n which the workers belong are:

Secondary
Tertiary
Primary
Secondary
Tertiary
Primary
Secondary
Tertiary.

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Explain five characteristics of labour as a factor of production

29/4/2019

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PREVIOUSLY: OUTLINE FOUR CHARACTERISTICS OF FREE RESOURCES.

EXPLAIN FIVE CHARACTERISTICS OF LABOUR AS A FACTOR OF PRODUCTION

1. It is a basic factor of production

Alongside land and Capital, Labour is a primary factor in the cycle of production. Without labour, there will be no production

2. It cannot be stored if a labourer is idle- his/her effort is wasted i.e. labour is perishable

Labour is more perishable than other factors of production. It means labour cannot be stored. The labour of an unemployed worker is lost forever for that day when he does not work.

3. Labour can not be separated from the labourer. That is the Labourer must be present to deliver services.

Labour and labourer are indispensable for each other. For example—It is not possible to bring the ability of a teacher to teach in the school, leaving the teacher at home.

4. Labourer sells their labour and not themselves.

Wage labour is the mode of production in which the labourer sells their capacity to work as a commodity. The capitalist who buys the labour power, and pays for it at its value, own the labour process and the product of labour, and can sell the product in order to realise a profit.

5. If it is human wish ability to think and capacity to get annoyed.

Labour is dependent on skills, experience, emotions and character. It's not easy to attain consistency in labour and always vary from one person to another.

6. Labour is mobile, that is labour can move from place to place

Labour mobility consists of changes in the location of workers both across physical space (geographic mobility) and across a set of jobs (occupational mobility).

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Factors influencing decisions on what goods and services to produce.

​The Manager of ENOOSAEN Sugar Company has vowed improve the company’s yield by 60% through labour motivation. State four ways by which he can achieve this.

Explain five benefits that may accrue to a country with a large proportion of skilled labour force.

Outline four positive effects that production activities may have on community health.

The participants in a two sector economy are households and firms. Identify the relevant participant in each of the statements given below:

Explain five benefits of division of labour to an organization.

Outline four features of indirect production.

Indicate the reward associated with each of the factors of production in the table below.

In the spaces provided below, indicate the type of utility created by each of the following commercial activities:

State factors that may affect the geographical mobility of labour

Expected Response

State four advantages of division of labour.

Highlight four factors that could influence mobility of capital as a factor of production.

State four ways in which production activities may negatively impact on community health.

List four types of utility and the production activity associated with each of them.

Utility

Production activity

The table below shows some of the occupations in production. Indicate the level of production associated with each of the occupations.

Characteristics of services

Features of land as a factor of production

Indicators of economic growth that may be observed as a country progresses

Answer

EXPLAIN FIVE CHARACTERISTICS OF LABOUR AS A FACTOR OF PRODUCTION

1. ​It is a basic factor of production

2. It cannot be stored if a labourer is idle- his/her effort is wasted i.e. labour is perishable

3. Labour can not be separated from the labourer. That is the Labourer must be present to deliver services.

4. Labourer sells their labour and not themselves.

5. If it is human wish ability to think and capacity to get annoyed.

6. Labour is mobile, that is labour can move from place to place

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The Manager of ENOOSAEN Sugar Company has vowed improve the company’s yield by 60% through labour motivation. State four ways by which he can achieve this.

1. It is a basic factor of production