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Econ 325: Economic Policy Analysis 2010 Question Paper

Econ 325: Economic Policy Analysis 2010

Course:Bachelor Of Science In Economics And Mathematics

Institution: Kabarak University question papers

Exam Year:2010

COURSE CODE: ECON 325
COURSE TITLE: ECONOMIC POLICY ANALYSIS
STREAM: Y3S2

INSTRUCTIONS:

1. Question ONE is COMPULSORY
2. Attempt any other TWO (2) Questions
3. Question ONE carries 30 marks while the other questions carry 20 marks each
4. Concise answers provide competitive advantage to the candidate

QUESTION ONE COMPULSORY (30 marks)

a) Define the following concepts:
i. Policy instruments (1 mark)
ii. Information symmetry (1 mark)
iii. Policy implementation (1 mark)
iv. Market failure (1 mark)
v. Market barriers (1 mark)
vi. Divestiture (1 mark)

b) Distinguish between the following paired concepts
i. X-efficiency and productive (4 marks)
ii. Policy instruments and target variables (4 marks)

c) Explain the criteria for assessing policy instrument? (6 marks)

d) What explains the contradiction between apparently sound economic polices in most
developing countries and the continued underdevelopment of these countries?
(10 marks)

QUESTION TWO
Critically evaluate Kenya’s industrial and agricultural policies in the post-independence
era. (20 marks)

QUESTION THREE
Define the vicious circle of poverty. (2 marks)
“Most Less Developed Countries (LDCs) have designed very good and eloquent policies
to address the many problems that they face. However, these countries still remain
trapped in the vicious circle of poverty”. Explain why this situation is common in the
LDCs and offer policy prescriptions for getting these countries out of the vicious circle.
(18 marks)

QUESTION FOUR
a) Define Multinational Corporation (MNC) (1 mark)
b) Discuss the contribution of the MNC in developing countries? (8 marks)
c) Explain the policy instruments that the Kenya Government can use to control the
operations of MNCs (5 marks)
d) Have the policies indicated in (c) above worked well? Explain. (5 marks)

QUESTION FIVE
a) With reference to Kenya discuss the role of information in economic development
(5 marks)
b) Indicate the challenges that Kenya faces with respect to implementing policies
relating to information. (5 marks)
b) “High rising population growth rates are an impediment the achievement of Kenya’s
national macroeconomic objectives”. Discuss this statement and highlight policies
that would alleviate this problem. (10 marks)

Econ 325: Economic Policy Analysis 2010 Question Paper

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