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Dbit 304 Macroeconomics Question Paper

Dbit 304 Macroeconomics

Course:Diploma In Business Information Technology

Institution: Kca University question papers

Exam Year:2012

UNIVERSITY EXAMINATIONS: 2011/2012
EXAMINATION FOR THE DIPLOMA IN BUSINESS INFORMATION
TECHNOLOGY
DBIT 304 MACROECONOMICS
DATE: MARCH, 2012 TIME: 1½ HOURS
INSTRUCTIONS: Answer Any Three Questions
QUESTION ONE
a) Highlight any 6 advantages of international trade in any economy. (6 Marks)
b) Define the term balance of payment and outline its contents (4 Marks)
c) Most developing countries experiences unfavorable balance of payment. Discuss any five
reasons for this and suggest possible measures for the same. (10 Marks)
QUESTION TWO
a) Outline 6 functions of commercial banks in an economy. (6Marks)
b) Discuss any 4 characteristics of good money in an economy (8 Marks)
c) Discuss any 3 limitations of barter system in an economy (6 Marks)
QUESTION THREE
a) Kenya as a developing country is looking forward to achieve the vision 2030. Discuss the factors
that may hinder Kenya not to achieve this vision by the year 2030 and suggest possible
measures that the government need to put into place so that this vision can be achievable.
(15Marks)
b) Highlight at least 10 features of developed countries. (5 Marks)
2
QUESTION FOUR
a) Outline 6 function of taxation in an economy (6 Marks)
b) Outline 6 principles /cannon of a good tax system. (6 Marks
c) Discuss any 4 types of unempolyment in an economy. (8 Marks)
QUESTION FIVE
a) Distinguish between injections and withdrawals as used in National Income analysis and outline
the items that constitute each. (6 Marks)
b) A statistic office of country X has the following financial figures of a certain year. (Figures are in
billions of shillings)
Billions
Gross Domestic Product 15600
Net factor income from abroad 694
Capital consumption allowance 1690
Indirect business taxes 1080
Social security contribution 1439
Corporate income taxes 737
Undistributed profits 325
Transfer payments 2070
Personal taxes 1715
Required:
i. Net National Product (N.N.P) (3 Marks)
ii. National income at factor cost. (N.N.I) (2 Marks)
iii. Personal Income. (P.I) (3 Marks)
iv. Disposable Personal Income (D.P.I) (2 Marks)
c) Distinguish between cost push inflation and demand pull inflation. (4 Marks)

Dbit 304 Macroeconomics Question Paper

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