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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