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Buss 115: Macro Economics Question Paper

Buss 115: Macro Economics

Course:Business Administration

Institution: Kenya Methodist University question papers

Exam Year:2011

KENYA METHODIST UNIVERSITY
END OF 3''RD ''TRIMESTER 2011 EXAMINATIONS
SCHOOL : BUSINESS AND ECONOMICS
DEPARTMENT : BUSINESS ADMINISTRATION
UNIT CODE : BUSS 115
UNIT TITLE : MACROECONOMICS

TIME: 2 HOURS
Instructions:
Answer Question ONE and any other Two Questions.
Question One
Distinguish between the balance of trade and balance of payments
(6mks)
Make a reasoned case for imposing an import tariff or quota on a specific good of your choice
(10mks)
Why should a good system of taxation include a variety of taxes
(8mks)
Differentiate between economic growth and economic development
(6mks)
Question Two
Describe the methods of calculating the national income
(6mks)
What difficulties are encountered in its measurement
(14mks)
Question Three
Indicate the main functions of money
(8mks)
The most important invention ever made for the development of civilization was that of money". Discuss the dictom
(12mks)
Question Four
Explain clearly what is meant by an adverse balance of payments
(10mks)
Discuss the measures which a government can introduce to try to bring about an overall surplus in balance payments
(10mks)
Question Five
Outline the causes of unemployment
(10mks)
What do you understand by structural unemployment? Discuss possible remedies
(10mks)

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