Ben 3213; Introduction To Macroeconomics  Question Paper

Ben 3213; Introduction To Macroeconomics  

Course:Bachelor Of Science In Agribusiness Management

Institution: Jaramogi Oginga Odinga University Of Science And Technology question papers

Exam Year:2013



BACHELOR OF AGRI- BUSINESS MANAGEMENT
BEN 3213 INTRODUCTION TO MACROECONOMICS



QUESTION ONE

(a)The information below relates to a certain country national income
ITEMS
MILLIONS K SHS

GNP
35000

INDIRECT TAXES
700

POPULATION
20

CAPITAL CONSUMPTION ALLOWANCE
200

UNDISTRIBUTED CORPORATE PROFITS
10

CORPORATE INCOME TAXES
15

PERSONAL TAXES
300

TRANSFER PAYMENTS
2000

SOCIAL SECURITY DISTRIBUTION
3000

SUBSIDIES
100





Calculate

(i) Net National Product at Market Price
(ii) Personal Income
(III) Income Per Capita
(iv) Disposable Income 8 Marks

(c) Explain the Monetaryl Policy Measures to reduce unemployment in an economy
6 Marks
(d) Explain the principles of a good tax system 6 Marks

(e) Explain the importance of the National Income Accounting
10 marks

QUESTION TWO
In relation to Monetary policy, explain the ways in which the Central Bank implements monetary policy 10 Marks
Explain the major components of Fiscal Policy in an economy 10 Marks


QUESTION THREE
The following information relates to the national income statistics of a certain country
Y = C+ I + G + ( X- M )
Where C= a + by, G = G, I = I, X= X, M = Mo + My
Derive the national income equation 4 Marks

Use the information above to derive the national income equation
If a= 300, b= 0.25y, G= 7000 , I = 5000, X = 400, Mo = 300, My = 10 % calculate the national income equilibrium 2 Marks
Explain the reasons why there has been an increase in public expenditure in Kenya giving out relevant examples 14 Marks

QUESTION FOUR
Explain the factors which have contributed to long term capital inflows investment in Less developing countries 10 Marks
Explain the causes of the balance of payment disequilibrium in an economy
10 Marks
QUESTION FIVE
One of the goals of monetary policy in an economy is to achieve a higher economic growth levels. Describe the various economic policies that should be implemented to achieve this objective 10 Marks
Explain the determinants of Growth 10 Marks

























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