UNIVERSITY EXAMINATIONS: 2019/2020
EXAMINATION FOR THE DIPLOMA BUSINESS INFORMATION
DBIT 304: GENERAL ECONOMICS OPEN BOOK EXAM
DATE: MAY 2020 TIME: 6 HOURS
INSTRUCTIONS: ANSWER ALL THE QUESTIONS.
QUESTION ONE (20 Marks)
(a) Discuss TEN factors that contributes to inequalities in the distribution of income and wealth
in an economy. (10 Marks)
(b) Kenya is one of the countries that have been affected by COVID-19.
(i) Identify any THREE key sectors and show how the effects of COVID-19 has affected
the economic performance and the overall effect in the Kenyan economy (6 Marks)
(ii) As a student taking DBIT course, analyse the contribution of technology to the Kenyan
economy during this period of COVID-19. (4 Marks)
QUESTION TWO (20 Marks)
(a) Discuss FOUR monetary policies that a nation may implement to fight monetary inflation
(b) Country G is currently ranked as a developing economy. In order to enhance economic
growth, the government of this country G has come up with an economic recovery strategic
paper geared towards realising economic development within a period of 30 years.
(i) Explain what you understand by economic growth and development. (2 Marks)
(ii) Discuss FIVE factors that might hinder country G from realising this objective and
measures that it should put in place to overcome these impediments. (10 Marks)