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Eae 312: Comparative Economic Systems Question Paper

Eae 312: Comparative Economic Systems

Course: Bachelor Of Arts In Economics

Institution: Kenyatta University question papers

Exam Year:2012

KENYATTA UNIVERSITY
UNIVERSITY EXAMINATIONS 2011/2012
SECOND SEMESTER EXAMINATION FOR THE DEGREE OF BACHELOR OF
ECONOMICS

EAE 312: COMPARATIVE ECONOMICS SYSTEMS

DATE: Wednesday 4th April 2012

TIME: 4.30 – 6.30 p.m.

INSTRUCTIONS
1) Answer THREE (3) Questions
2) Question ONE (1) is Compulsory (30 marks)
3) Answer any other TWO (2) Questions (20 marks)

Q.1) When China launched its economic reforms in 1978, the country had a far higher poverty
rate (with over 60% of the population living below US$1per day) than Kenya (about
40% lived below the poverty line in Kenya in 1978). Today (2012) China’s poverty
levels have dropped to less than 10% living below the poverty line of 1 dollar per day,
while Kenya’s poverty level has increased to 56% living below 1 dollar per day.

What is the explanation for the difference between poverty level for China and Kenya
when Kenya has, since independence, embraced the capitalist economic system that has
produced the rich Western economies and China has since the Revolution in the 1949,
embraced communism, which is partly blamed for the economic collapse of the Soviet
Union?

(30 marks)

Q.2) Given an exposition of the intellectual input of the following in the emergence and
consolidation of specific economic systems.
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(i)
Adam Smith

(5 marks)

(ii)
John Stuart Mill

(5 marks)

(iii)
Friedrich List

(5 marks)

(iv)
Jean Charles Sismondi

(5 marks)

Q.3) (a)
Briefly outline Oscar Lange’s trial and error model of market-

Socialism.

(12 marks)
(b)
Use Friedrich Von Layek’s and Abraham Bergson’s to give a critique of Oscar
Lange’s Model.

(8 marks)

Q.4) (a)
Outline the basic concepts of worker’s participation under the cooperative model

of market socialism.

(8 marks)

(b)
How does the cooperative model work?

(8 marks)

(c)
What were the major criticisms of the cooperative model?
(4 marks)

Q.5) (a)
What is an economic plan?

(2 marks)

(b)
Highlight those aspects of planning which distinguish economic planning as

practiced in the following:
(i)
Capitalist economic system

(2 marks)
(ii)
Market socialism or mixed economic system

(6 marks)
(iii)
Planned socialism or communist economic system
(6 marks)

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Eae 312: Comparative Economic Systems Question Paper

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