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Tbs 203: Elements Of Macroeconomics Question Paper

Tbs 203: Elements Of Macroeconomics

Course:Bachelor Of Education

Institution: South Eastern Kenya University question papers

Exam Year:2015

SOUTH EASTERN KENYA UNIVERSITY
UNIVERSITY EXAMINATIONS 2015/2016

FIRST SEMESTER EXAMINATION FOR THE
DEGREE OF BACHELOR OF EDUCATION

TBS 203: ELEMENTS OF MACROECONOMICS

DATE: 16THAUGUST, 2016 TIME: 11.00-1.00P.M

Instructions to Candidates

a) Answer Question ONE and any other TWO questions.
b) Begin answering a new question on a separate page on the booklet provided
c) Credit will be given to the clarity of argument and use of local examples.

QUESTION ONE (30 MARKS)

a) Differentiate between a commercial bank and a non-bank financial institution (2 marks)

b) Explain four causes of disequilibrium in the balance of payments of a country(5 marks)
c) Explain in detail five causes of cost push inflation in the economy (5 marks)
d) Explain at least five causes of unemployment (5 marks)
e) Define CPI and explain two weaknesses of using CPI as a measure of inflation (5 marks)
f) Name the four functions of money in the economy (4 marks)
g) Give at least five characteristics of under developed countries (4 marks)

QUESTION TWO (20 MARKS)

a)Name and explain five challenges of development planning(10 marks)

b)Explain in detail how the central bank would control money supply in the economy

(10 marks)

QUESTION THREE (20 MARKS)

a)Name and explain five ways in which a country can do to decrease population growth

(10 marks)

b)Discuss different ways in which a country can use to reduce unemployment (10 marks)

QUESTION FOUR (20 MARKS)
a)Explain five demerits of using expenditure approach as a method of measuring national
income (10 marks)
b)Name and explain five problems encountered in measuring national income of any given
country (10 marks)

QUESTION FIVE (20 MARKS)

a)Using a diagram, explain with notes the three main withdrawals and the three main injections in the circular flow of income (10 marks)

c)Name and explain five monetary tools that a country can use to control inflation
(10marks)

Tbs 203: Elements Of Macroeconomics Question Paper

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