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Development Economics&Amp; Planning(Buss 327) Question Paper

Development Economics&Amp; Planning(Buss 327)

Course:Business Administration

Institution: Kenya Methodist University question papers

Exam Year:2010

TIME : 2 HOURS
INSTRUCTIONS Answer Question ONE and any Other TWO Questions

QUESTION 1
a) Briefly, explain the following terms;
(i) Sustainable development 4marks)
(ii) Cost – benefit analysis (4marks)
(iii) Economic development. (4marks)
(iv) Economic growth. (4 marks)
b) In your view, what are the objectives of development that a country like Kenya seeks to achieve (4marks) c) Harrod – Dommar Model is an extension of the Keynesian short – term analysis of full employment and income theory of output.
(i) Give the fundamental equation of Harrod – Dommar model (1mark) (ii) What are the requirements of the steady growth by this model? (3 marks) (iii) Develop the capital formation equation from (i) above. (2marks) (iv) What are the underlying assumptions of the model? (2marks) (v) Outline the limitations of the model under the standpoint of the developing countries (2marks)

QUESTION 2
a) Describe the uses of cost – benefit analysis in developing countries. (10marks) b) ‘For countries that are resource poor and have relatively small domestic markets, the trade strategies based on primary exports or on import – substitution strategy provide scant hopes for sustainable development’. Critically evaluate this statement. (10marks)

QUESTION 3
a) Discuss various characteristics of developing countries. (10marks) b) The Solow model of growth is one of the popular theories of economic growth and development.
(i) Give the fundamental equation of the Solow model. (1 mark)
(ii) What are the key assumptions in the model? (3marks)
(iii) Give a critical appraisal of the model. (4marks)
(iv) What are the effects of the saving rate on income and growth in this model? (2marks)

QUESTION 4
a) Outline the range of major policy options that are available for industrialization within the economies of developing countries and bring out clearly some of the limitations towards the development of this sector. (8 marks)
b) Explain clearly the importance of agriculture in the overall development process of a developing country. (6marks)
c) What are the various policy options available to a developing country that can enable increase its agricultural output. (6marks)

QUESTION 5
a) Briefly, explain what you understand by term ‘Economic planning’. (4 marks)
b) Distinguish between perspective and annual planning outlining the demerits of perspective planning. (6marks)
c) Discuss various economic factors that influence economic growth and development in various developing countries. (10 marks)

Development Economics&Amp; Planning(Buss 327) Question Paper

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