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Eae 100: Economics Of Information Technology Question Paper

Eae 100: Economics Of Information Technology

Course:Bachelor Of Economics And Statistics

Institution: Kenyatta University question papers

Exam Year:2015

KENYATTA UNIVERSITY
UNIVERSITY EXAMINATION 2014/2015
FIRRST SEMESTER EXAMINATION FOR THE DEGREE OF BACHELOR OF ECONOMICS
EAE 100: ECONOMICS OF INFORMATION TECHNOLOGY
INSTRUCTIONS
Answer question one (compulsory) and any other TWO questions
Question One carries 30marks and the rest 20 each
Question 1
a) Using examples define the following terms (10marks)
1)Bundling
2)Second degree price discrimination
3)Digital economy
4)Software enthropy
5)Assignment scope
b)In economics the objective of a firm is to maximize profit, and one of the ways of ensuring that firms optimize is by ensuring that software are well maintained. Explain the factors which would impact negatively on the work of updating or modifying existing software applications (10marks)
c) 1)What is Business Process Outsourcing (2marks)
2)What are some of the measures undertaken by the government to improve the sector(3marks)
3)Explain the key challenges facing the BPO sector in the Kenya. (5 marks)
Question 2
a)Define the term "electronic data processing" and use a fitting example to illustrate the process of data processing in afirm that has adopted the use of electronic data processing device. (10 marks)
b)"Information technology has the potential to continue driving growth for the foreseeable future" Explain some of the trends that have been observed that suggest that ICT will continue to be a driver of growth.
Question Three
a)Define price discrimination and explain why it is important in the high-tech industries. (10 marks)
b)Explain the economic benefits of bundling
Question Four
a)Explain the different types of programs used to operate computers and their devices. (10marks)
b)In your opinion, has the use of information technology improved the productivity of workers in Kenyan firms? Discuss your answer. (10 marks)
Question Five
a)Explain the metrics problems with small maintenance projects. (10 marks)
b) Explain the different forms of property rights (10 marks)

Eae 100: Economics Of Information Technology Question Paper

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