Economics Of Public Enterprises Question Paper
Economics Of Public Enterprises
Course:Bachelor Of Education
Institution: Kenyatta University question papers
Exam Year:2010
KENYATTA UNIVERSITY
UNIVERSITY EXAMINATIONS 2008/2009
INSTITUTE OF OPEN LEARNING (IOL) EXAMINATION FOR DEGREE OF BACHELOR OF ARTS
AEC 408: ECONOMICS OF PUBLIC ENTERPRISES
DATE: Monday 15th February 2010 TIME: 8.00a.m – 10.00a.m
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INSTRUCTIONS: Attempt question (one) and any other two questions
Q1. a) Explain the three forms of public enterprises giving examples in each case
in Kenya. [9marks]
b) Giving examples in Kenya justify the needs for the government to
participate in the production process of a country. [10marks]
c) Explain the various pricing policies that can be used by public enterprises.
[11marks]
Q2.With the help of a diagram explain the Marginal Cost and Average Cost pricing
mechanism of public sector enterprises and state advantages and disadvantages of
each. [20marks]
Q3.a) Explain the reasons why most of the public enterprises operate under
losses in most instances. [10marks]
b) Suggest various policies that can be used by the government to change the
trend. [10marks]
Q4. Discuss the following policies and show how they can be used to reform the public enterprise
i) Privatization
ii) Private-public partnership
iii) Mergers
iv) Restructuring [2marks]
Q5. Discuss how management of public enterprises can be used to determine the success and failure of public enterprises.
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