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Principles Of Macroeconomics(Econ 102) (Dps 013) (Buss 115) Question Paper

Principles Of Macroeconomics(Econ 102) (Dps 013) (Buss 115)

Course:Education

Institution: Kenya Methodist University question papers

Exam Year:2013

TIME : 2 HOURS

INSTRUCTIONS
Answer any five questions
Question One
What are the functions of the following financial institutions?
Central bank of Kenya
(8 Marks)
Commercial banks
(8 Marks)
What are the main characteristics of good money?
(4 marks)

Question Two
Discuss the main gains and problems of international trade (20 marks)

Question Three
Discuss the circular flow of income (use diagrams)
(6 Marks)
Discuss the major types of inflation showing also the main causes of inflation
(14 marks)

Question Four
Discuss the main goals of economic development
(10 marks)
In your opinion, what is the importance of taxation in an economy like Kenya?
(10 marks)

Question Five
Differentiate economic growth from economic development
(6 Marks)
Differentiate dumping from devaluation using good examples
(8 Marks)
How different is cost push inflation from demand pull inflation?
(6 Marks)

Question Six
Discuss some of the economic implications of rising trend in rural – urban migration and offer policy recommendations to reverse it.
(8 marks)
What are the uses (importance) of national income statistics in a country?
(8 Marks)
Explain the term "per capita" income and show its calculated
(4 Marks)

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