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Eae204: Economic Development Question Paper

Eae204: Economic Development

Course: Bachelor Of Arts In Economics

Institution: Kenyatta University question papers

Exam Year:2012

KENYATTA UNIVERSITY
UNIVERSITY EXAMINATIONS 2011/2012
SECOND SEMESTER EXAMINATION FOR THE DEGREE OF BACHELOR
OF ARTS, BACHELOR OF EDUCATION, BACHELOR OF ECONOMICS AND
FINANCE AND BACHELOR OF ECONOMICS AND STATISTICS
EAE 204 : ECONOMIC DEVELOPMENT
=================================================================
DATE: WEDNESDAY 4TH APRIL 2012
TIME: 11.00 A.M. – 1.00 P.M.

INSTRUCTIONS
Answer question ONE and any other Two .
Q.1
a)
The news constitution of Kenya provides for a developed system of
governance. This is meant to aid in faster development of the less developed
counties. Using O-Ring theory, explain why devolution may not achieve the
intended goal.

(20 marks)
b)
Briefly discuss any the various measures of economic development outlining
the strengths and weaknesses of each.

(20 marks)
Q.2
Explain in detail the various measures of economic development outlining the
strengths and weaknesses of each.

(20 marks)
Q.3
a)
Sen believes that development should be measured by the degree of freedom
that people of a country enjoy. To what extent is this relevant to the Kenyan
development process?

(10 marks)

b)
Discuss the basic needs strategy of economic development
(10 marks)
Q.4
In the recent months, the Kenya shilling depreciated in value against world
currencies. The Central Bank of Kenya responded by increasing the bank lending
rates. Using the Keynesian theory of economic development, explain how this would
affect economic growth and employment.

(20 marks)
Q.5
a)
Briefly discuss the Solow model of economic development.
(10 marks)

b)
Discuss the role of high population in economic development.
(10 marks)

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Eae204: Economic Development Question Paper

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