Economic growth, economic development and economic planning – Questions and Answers

Subject Title: Economics Revision Kit

TOPIC: Economic growth, economic development and economic planning

QUESTION 1
April 2022 Question Four B
The table below shows the total variable cost of a firm at different production levels:
Variable cost
The total fixed cost of the company is Sh.150,000.

Required:
(i) The average cost of production for each output level. (4 marks)
(ii) The marginal cost of production for each output level. (4 marks)
(iii) The profit maximising level of output. (2 marks)

QUESTION 2
April 2022 Question Seven A and C
(a) (i) With reference to economic growth and development, explain the term “potential growth”. (2 marks)
ii) Examine six benefits of economic growth and development. (6 marks)
(c) Identify six strategies that the government may adopt to promote the informal sector in developing countries. (6 marks)

QUESTION 3
December 2021 Question Four B
Outline five factors that determine the economic development of a country. (5 marks)

QUESTION 4
August 2021 Question Six B
Identify four effects of Covid-19 pandemic on the world economy. (4 marks)

QUESTION 5
May 2021 Question Three C
Kenya, which is currently ranked as a developing country, came up with an economic blueprint geared towards realising economic development by the year 2030.

Required:
(i) Describe five factors that might hinder Kenya from realising the above objective.
(5 marks)
(ii) Outline measures, that might be put in place in order to overcome the impediments in (c) (i) above. (5 marks)

QUESTION 6
May 2021 Question Six A
(i) Describe the term “economic integration”. (2 marks)
(ii) Highlight six factors that limit successful economic integration in developing countries. (6 marks)

QUESTION 7
May 2021 Question Seven C
With the aid of a diagram distinguish between “actual economic growth” and “potential economic growth”. (5 marks)

QUESTION 8
November 2020 Question Four C
Explain the term “economic planning”. (2 marks)

QUESTION 9
November 2020 Question Four D
Highlight six characteristics of a good economic (6 marks)

QUESTION 10
November 2019 Question Seven A
Enumerate five causes of inequalities in the distribution of income and wealth in an economy. (5 marks)

QUESTION 11
November 2019 Question Seven B
Explain five benefits of development planning in an economy. (5 marks)

QUESTION 12
May 2019 Question Six C
Explain six causes of high levels of external debt in developing countries. (6 marks)

QUESTION 13
November 2018 Question seven B
Analyse six obstacles to industrial development in developing countries. (6 marks)

QUESTION 14
May 2018 Question Three D
Highlight five determinants of economic development in a country. (5 marks)

QUESTION 15
November 2017 Question Two B
Examine eight policy measures that could be adopted to minimise the problem of rising external debt in developing countries. (8 marks)

QUESTION 16
May 2017 Question Four B
Suggest six economic reforms that could be put in place to boost the growth of the informal sector in developing countries. (12 marks)

QUESTION 17
November 2016 Question Four A
Highlight five strategies that could be implemented by governments in developing countries to spur growth in the industrial sector. (5 marks)

QUESTION 18
November 2016 Question seven C
Summarise eight challenges that hinder successful achievement of national development targets set by developing countries. (8 marks)
Sector Total output Intermediate purchaser
Sh.”000″ Sh.”000″
Service 76,000 37,000
Agricultural 55,000 23,000
Manufacturing 111,000 69,000

Indirect taxes and fixed assets depreciation amount to Sh.21,000,000 and Sh.22,000,000 respectively.

Required:
(i) Gross national product using the value added approach. (2 marks)
(ii) Net domestic product at market price. (1 mark)
(iii) Net domestic product at factor cost. (1 mark)

QUESTION 19
May 2016 Question Three A
Discuss five policy measures that developing countries could adopt to reduce regional imbalances. (5 marks)

QUESTION 20
May 2016 Question seven C
State seven economic goals of developing countries. (7 marks)

QUESTION 21
November 2015 Question Six B
(i) Outline six causes of high levels of external debts in developing countries.
(6 marks)
(ii) Summarise six policies that could be adopted to combat the problem of high levels of external debts in developing countries. (6 marks)

QUESTION 22
September 2015 Question Four B
Distinguish between “economic growth” and “economic development”. (4 marks)

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