MAASAI MARA UNIVERSITY
REGULAR UNIVERSITY EXAMINATIONS
2018/2019 ACADEMIC YEAR
THIRD YEAR FIRST SEMESTER
SCHOOL OF BUSINESS AND ECONOMICS
BACHELOR OF SCIENCE IN ECONOMICS
COURSE CODE: ECO 3109
COURSE TITLE: DEMOGRAPHIC ECONOMICS
DATE: 13TH DECEMBER 2018 TIME: 8.30 -10.30AM
INSTRUCTIONS TO CANDIDATES
Answer Question ONE and any other THREE questions
This paper consists of 3 printed pages. Please turn over.
QUESTION ONE
a) i) Discuss the theory of demographic transition. (5marks)
ii). Explain with example and illustration which stage Kenya in the
demographic transition seems to be (3marks)
b) Explain the relationship between a Lorenz curve and Gini coefficient
(3marks)
c) Discuss the essential assumptions and features of Lewis –Fei-Ranis surplus
labour model. (5marks)
d) Explain the relationship between the age structure of a population and its
dependency burden. (5marks)
e) Discuss the optimum theory of population. (4marks)
QUESTION TWO
a) i) Discuss the coale-Hoover thesis about adverse effects of population
growth on savings and capital formation. (4marks)
ii) On what grounds should this thesis be rejected? (3marks)
b) i) Describe the classical flexible wages model of employment
determination. (3 marks)
ii) What way can this model be said there never be unemployment?
(2 marks)
c) Discuss the concept of optimal amount of inequality. (3marks)
QUESTION THREE
a) Explain why many economists blame minimum wage law for much of
employment problems of youth. (4marks)
b) Discuss three distinct conceptualizations of the likely response to
population according to Bilshorrow (1987). (3marks)
c) i) Explain the Malthusian theory of population trap. (5marks)
ii) Is this theory applicable to Kenyan population? (3marks)
QUESTION FOUR
(a) Explain the factors that cause the international migration of high level of
educated manpower from less developed counties to developed counties.
(5marks)
b) Explain how the so-called household or micro-economics of fertility relates
to the theory of consumer choice. (4marks)
c) i) Explain the concept of hidden momentum of population growth.
(3marks)
ii) Discuss how this concept is important for projecting future population
trends in different third world countries. (3marks)
QUESTION FIVE
a) Explain economic and social policies the governments of developing and
developed countries and international assistance agencies might consider
to bring about a reduction in overall rates of world population growth.
(6marks)
b) Explain the following concepts as used in demographic economics
(6marks)
i. Crude death rate
ii. Replacement fertility
iii. Infant mortality rate
iv. Doubling time
v. Population policies
vi. Overlapping generation models
c) Discuss conditions necessary for economic growth to translate into
improvements in the quality of life. (3marks)
