Principles of Macroeconomics Questions

Principles of Macroeconomics (ECNC2202)

Higher Institute of Commerce and Management (HICM)

Semester: Second Semester

Level: 200

Year: 2019

Answers (200 )

THE UNIVERSITY OF BAMENDA

HIGHER INSTITUTE OF COMMERCE AND MANAGEMENT (HICM)

PRINCIPLES OF MACROECONOMICS EXAMINATIONS

SECOND SEMESTER 2018/2019

INSTRUCTIONS: ANSWER ALL QUESTIONS IN THE TWO SECTIONS. TIME ALLOWED:

3 HOURS

SECTION A (30 MARKS)

QUESTION ONE (5 MARKS)

In not more than a sentence, define the following concepts as used in principles of macroeconomics:

a) Crowding out effect b) Macroeconomic equilibrium C) Double counting d) Transfer payments

e) Monetary policy.

QUESTION TWO (10 MARKS)

Using diagrams, illustrate the following effects on the macroeconomic equilibrium in the short run and

long run:

i). Occurrence of inflation in an economy ii) Economic growth occurs, iii) Political instability like wars in

the economy iv) Free education and unemployment benefits to the citizens. (2,2,2,4, marks)

QUESTION THREE (15 MARKS)

How are interest rates determined in an economy? What factors may cause a fall in interest rate (use

either the Classical or Keynesian models to illustrate your answers i.e. graphs needed in each argument)

(5,10 marks).

SECTION B. EXCERCISES (40 Marks)

QUESTION ONE (20 marks)

Use the data below and answer the questions that follows:

An economy has it aggregate monetary demand represented as

C = 50 + 0.75yd, 1=100 (when yd = y-T+Tr )

a) Calculate the equilibrium level of national income using

i. Income/expenditure approach

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ii. Injections/withdrawals approach.

iii) Determine the value of the multiplier.

b) Based on the information in question (1) above, government activities are introduced where G =40.

Calculate the new level of national income using

i. Income/expenditure approach

ii. Injections/withdrawals approach.

iii. Determine the value of the multiplier

c) Now the government introduces taxes and transfer payments, where T = 0.2y, Tr of 0. ly.

Calculate equilibrium national income using

i. Income/expenditure approach

ii. Injections/withdrawals approach.

iii. Determine the value of the multiplier

d) Given the information in the two and three sectors above, international trade comes into play. The

value of import is given as M = 0.125yd and export X= 80. Determine the national income using.

i. lncome/expenditure approach

ii. Injections/withdrawals approach.

iii. Determine the value of the multiplier

QUESTION TWO (10 marks)

I.) Suppose a firm has accumulated capital uniformly over 5years in such a way that 1000m FCFA

worth of machines are due replacements each year. The capital output ratio is 3:1.

Complete the table below.

Year

Output

(M.FCFA)

%din

output

Existing

capital

Required

capital

Replacement

investment

Net

investment

% Ain Net

investment

1 1000

2 2000

3 3000

4 3000

2000

State four assumptions of the above principle (2 marks)

Complete the table (6 marks)

Explain the significance of the capital output ratio as observed in (b) above (2 marks)

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Illustrations (Productivity)

Illustration 1

UNALOR produces 7,040,000 boxes of match in a month, Costs are reported as follows

Cost of labour is 1,000,000 Frs CFA, Cost of materials is 520,000 Frs CFA and Cost of overhead is

2,000 000 Frs CFA.

Required: What is the multifactor productivity^

Illustration 2

The Cameroon textile company (CICAM) has invested close to six billion Frs CFA to improve on its

factory systems and it is estimated that its productivity may pass from 80 to 84 in the next two years.

Required: What is the productivity growth rate (PGR)?

Illustration 3

A real estate company has workers and various machines, operating in different units ina contract for a

particular customer. In the carpeting unit, the standard work hour for ati average employee is to install

30m

of carpet in an hour. Three employees working on carpet installation have just been fired because

their average productivity of 28 m

/hr fell below the standard. The machine producing the carpet has a

standard hour output of the camp- rate (30m

)

Within an 8 hour-day, four newly recruited employees have installed 720 m

, and the machine has

produced 68

(i)

Calculate the productivity of the four new workers'^

(ii)

Was it a good decision to recruit the new workers

(iii)

What is the productivity of the machine?

Illustration 4

A Moroccan company that produces canned sardines is able to produce 400 cartons of fourty canned

each in half an hour with four workers.

Required: What is the labour productivity?

Illustration 5. '

The Production Manager in a bakery in Douala spent 30,000,000 Frs CFA on a new kiln (oven) last year.

It was planned that it would cut energy usage 25% over the old kiln. The manager of the company' wants

to check die energy savings of the new oven and to evaluate other measures of their productivity whether

the change really was beneficial.

The company’s data are as follows;

Elements

Last Year

this year

Production(tons)

400

4000

Labour(hours)

350

375

Capital(Frs CFA)

15000

18000

Energy(Kwh)

3000

2600

Required: Explain whether the modification was beneficial or not

Illustration 6

Suppose that a company produced 300 standard bookcases last week using eight workers and produced

240 standard bookcases this’ week using six workers.

Required:In which week was productivity higher? Explain

Illustration 7

The manager of a crew that installs carpeting has tracked the crew's output over the past several weeks,

obtaining

Week

Crew Size

Yards Installed

960

702

968

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Higher Institute of Commerce and Management

(HICM LEVEL 200) Principles of Organizations (MGT 207)

Credit Value: 3 Course Instructors: Egbe Louise Ajeh & Kifem Franklin

First Semester Examination 2017/2018.Time allowed; THREE HOURS

INSTRUCTIONS; Answer all questions and be orderly in your presentation.

1. Write on the different forms of business concerns, spelling out their advantages and disadvantages.

With concrete examples, which type and form of business organization will you encourage and why?

(20marks)

2. Socialization is an instrument for personnel development in an organization. What is Organizational

socialization? What are the advantages and disadvantages of organizational socialization. (10 marks)

3. What is departmentalization? Explain at least FOUR forms it can take using diagrams where necessary.

(10 marks)

4. What is meant by the parity of authority and responsibility? How can it aid in effective management of

personnel in an organization? (10 marks)

5. Any organization is guided by some basic principles which help the organization to achieve its

fundamental objectives.?'With the aid of practical examples, explain Five principles governing an

organization. (5 marks)

6. Organizational conflict has recently been viewed by many managers as a cause of employees poor

performance. Bring out the different types of conflicts in an organization and how can these conflicts be

resolved. ( 10 marks)

7. a) Examine the concept and relevance of organizational evaluation. (l0marks)

b) Identify and explain the various types of evaluation. (5marks)

END

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