Development Economics Knec Past Paper June/July 2012

DIPLOMA IN SOCIAL WORK AND COMMUNITY DEVELOPMENT
MODULE 1(KNEC)
DEVELOPMENT ECONOMICS AND ENTREPRENEURSHIP EDUCATION JUNE/JULY 2012)
SECTION A: DEVELOPMENT ECONOMICS
1. a) Explain the meaning of the following terms as applied in inflation:
i. Anticipated inflation
il. Demanc¢- pull inflation
iii. Cost-push inflation (6 marks)
b) State and explain seven methods that can be applied to control unemployment (14 marks)

2. a) Explain the meaning of the following terms as used in population:
i. Demography
il. Demographic transition theory
ill. Ageing population
iv. Declining population (8 marks)

3. i. Explain the meaning of economic development (2 marks)
il. State and explain five key indicators of developing countries (10 marks)

4. i. Explain the meaning of monetary policy (2 marks)
il. State and explain four functions of monetary policy (8 marks)

5. i. Explain the meaning of taxes (2 marks)
il. Differentiate between each of the following:
I. Direct and indirect taxes
Il. Progressive and regressive taxes (8 marks)

6. i. Explain the meaning of poverty in the absolute sense (2 marks)
il. Describe four causes of economic inequality (8 marks)
b) Describe the following terms as applied in international trade:
i. Quota
il. Exchange control system
iii. Imports deposits scheme
iV. Trade agreements
V. Subsidies (10 marks)
SECTION B: ENTREPRENEURSHIP EDUCATION

7. a) Explain the meaning of the following terms as applied in entrepreneurship:
i. Manufacturing
il. Retailing
ill. Service
iv. Whole selling (8 marks)
b) State and explain six factors that should be considered when selecting a resource for running a business enterprise (12 marks)
State and explain five ways of acquiring business skills (10 marks)
State and explain five factors to consider when evaluating abusiness environment (10 marks)
Explain how each of the following factors determine the most suitable source of raising capital for running a business:
i. Cost
ii. Risk
ili. Flexibility
iV. Control
V. Availability (10 marks)
State and explain five types of entrepreneurs (10 marks)
Explain five cultural habits that promote entrepreneurial development (10 marks)
State and describe five social concerns of a business enterprise (10 marks)

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