UNIVERSITY OF EMBU

2017/2018 ACADEMIC YEAR

SECOND SEMESTER EXAMINATIONS

THIRD YEAR EXAMINATION FOR THE DEGREE OF BACHELOR OF

ECONOMICS

XEA 302: DEVELOPMENT PLANNING

DATE: APRIL 10, 2018 TIME: 11:00 AM -1:00 PM

INSTRUCTIONS:

Answer Question ONE and ANY Other TWO Questions.

QUESTION ONE (30 MARKS)

a) Differentiate between the following terms
i) Anti-cyclical planning and Development planning (4 marks)
ii) A project and a progranune (4 marks)
iii) Production expense and an Investment (4 marks)
iv) Financial and Economic aspects of project analysis and selection (4 marks)
v) Project Appraisal and Project Evaluation (4 marks)

b) Give five arguments for planning by county governments (5 marks)

c) Briefly discuss five causes of development pla1ming failure in developing countries
(5 marks)
QUESTION TWO (20 MARKS)

a) Planning requires some resource inputs, in order to produce an output. Describe the 3
categories of non-hwnan resource requirements (6 marks)

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 b) Given that the national Incremental Capital-Output Ratio (ICOR) = 0.5 and a GDP
increase of US$80 billion, determine the required total net investment in the country.
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c) Discuss five limitations of the cost-benefit analysis as a plamling technique
(10 marks)

QUESTION THREE (20 MARKS)

a) Discuss the following development plans highlighting their merits and demerits
i) Fixed Plans (5 marks)
ii) Rolling plans (5 marks)
iii) Perspective plans (4 marks)
b) Describe the three periods of the implementation stage in a project cycle (6 marks)

QUESTION FOUR (20 MARKS)

a) Explain what the Kenya Vision 2030 is? (2 marks)

b) Discuss the three Pillars of the Kenya Vision 2030 (18 marks)

QUESTION FIVE (20 MARKS)

a) What is Socio-economic integration? (2 marks)

b) Discuss the negative impacts international socio-economic integration has on planning

(6 marks)
c) Differentiate between the following planning procedures
i) Planning by Inducement and Planning by directions (4 marks)
ii) Physical Planning and Financial Planning (4 marks)
iii) Centralized Planning and Decentralized Planning. (4 marks)

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