Get premium membership and access revision papers, questions with answers as well as video lessons.

Buss 210: Development Economics Question Paper

Buss 210: Development Economics

Course:Development Economics

Institution: Kenya Methodist University question papers

Exam Year:2008

KENYA METHODIST UNIVERSITY

END OF SECOND TRIMESTER 2008 EXAMINATIONS

FACULTY : BUSINESS AND MANAGEMENT STUDIES
DEPARTEMENT : BUSINESS ADMINISTRATION
COURSE CODE : BUSS 210
COURSE TITLE : DEVELOPMENT ECONOMICS
TIME : 2 HOURS

INSTRUCTIONS:
• Answer Question ONE (Compulsory) and any other TWO Questions

Question 1
(a) Rapid industrialisation has been suggested as a solution to the problems facing developing countries. Discuss this statement in the light of mass poverty still experienced in the developing countries to this day (15 marks)
(b) Using a diagram, describe in detail a vicious cycle of poverty and its application to the economic realities of developing countries (10 marks)
(c) Explain the difference between absolute and relative poverty (5 marks)

Question 2
Is foreign direct investment (FDI) necessary for developing countries economies?
Discuss the role governments in developing countries can play to attract foreign direct investment? (20 marks)

Question 3
Write short notes on the following concepts:
(a) Millennium Development Goals (MDGs) (10 marks)
(b) Capital flight in developing countries (5 marks)
(c) Sustainable development (5 marks)

Question 4
“Bretton Woods institutions (i.e. IMF and World Bank) supported structural adjustment programmes (SAPs) were considered in the 1980s and 1990s as a cure to the problems facing developing countries.” Consider this statement and discuss the advantages and disadvantages of structural adjustment programmes (SAPs) in reference to your country? (25 marks)

Question 5
(a) According to the Harrod – Domar Model, if a developing country like Kenya wants to grow at the rate of 10% per year and given its capital-output ratio (k) is 2.5, what will be the required savings rate (s) for it to realise that growth rate? (10 marks)
(b) Suppose the developing country cited in 5(a) above, can only manage national savings at the rate of only 18%, determine whether there is a national savings constraint and of what magnitude and give suggestions on how the savings gap can be filled? (10 marks)

Buss 210: Development Economics Question Paper

More Question Papers

Popular Exams