ATTEMPT ALL QUESTIONS ON CAPITAL ASSIGNMENT

1. Distinguish between fixed K and liquid capital  (2 mks)

(ii) Mention three factors that influence K mobility in your country (2 mks)

2. (i) Define mobility of capital (1 mk)

(ii)Give three factors that limit mobility of K  in an economy (2 mk)

3. (i)Distinguish between factor specificity and factor mobility (2 mks)

(ii)How does the degree of factor specificity affect factor mobility in your country? (2 mks)

4. Define the term factor mobility(1mk)

(ii)State any two factors that limit K accumulation in your country (2 mks)

5. (i)What is meant by the term marginal efficiency of capital? (1 mk)

(ii)Mention three factors that affect the marginal efficiency of K in your country? (2mks)

6. State four ways of increasing the marginal efficiency of K in an economy ( 4 mks)
7. ) Explain the role of K in economic development ( 10 mks)

(b) Discuss the factors that influence K accumulation in your country (10 mks)

8. (a)Distinguish between capital formation and K appreciation (4 mks)

(b)Discuss the factors that limit K accumulation in your country (15 mks)