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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:2010

FACULTY : BUSINESS AND MANAGEMENT STUDIES
DEPARTMENT : BUSINESS ADMINISTRATION
TIME : 2 HOURS
INSTRUCTIONS Answer Question ONE (compulsory) and any Other TWO Questions

Question 1
a) Discuss the nature of economics. (10marks)
b) The study of economics as a discipline is of enormous importance. Discuss (10marks)
c) With relevant examples discuss the the various types of demand. (10marks)

Question 2
Macro economics measures aggregates of national importance. With this in mind,
a) Discuss the meaning of national income and the significance of national income statistics.
b) Explain the problems encountered in the measurement of national income. (20marks)

Question 3
Discuss the meaning and causes of inflation and explain the measures that can be employed to counter inflation (20marks)

Question 4
a) For anything to be generally accepted as good money it must posses certain characteristics .Discuss
b) Discuss the functions of money (20marks)

Question 5
a) Explain the meaning and objectives of monetary policy
b) Discuss the role of monetary policy in a developing economy (20marks)

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