GREAT ZIMBABWE UNIVERSITY

FACULTY OF COMMERCE

DEPARTMENT OF ACCOUNTING AND INFORMATION SYSTEMS

EXAMINATION
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MASTER OF BUSINESS ADMINISTRATION PART 1 SEMESTER 2

MAIN PAPER

MBPME510 MACRO-ECONOMICS

DATE JUNE 2015

DURATION 3 HOURS

INSTRUCTIONS TO CANDIDATES

ANSWER FOUR (4) QUESTIONS

EACH QUESTION CARRIES 25 MARKS

Question one

To promote economic development, countries usually pursue macroeconomic objectives.

Evaluate five macro-economic objectives that Zimbabwe need to pursue indicating its
capacity to achieve the objectives
[TOTAL MARKS: 25]

Question two

To achieve macro-economic objectives by 2018, ZIMASSET has recommended the

implementation of
a) Value addition
b) Special economic zones

Discuss how these programmes will help the country to achieve its macroeconomic
objectives.

[TOTAL MARKS: 25]

Question three

1. Developing countries have been largely affected by higher levels of unemployment

a) Discuss the various types of unemployment that have been experienced in
developing countries [15]
b) Discuss policies and programmes that developing countries should use to reduce
unemployment levels [10]
[TOTAL MARKS: 25]

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Question four

The table below shows national income statistics of a country

Personal Consumption 3,657

Depreciation 400

Wages 3,254

Indirect Business Taxes 500

Interest 530

Domestic Investment 741

Government Expenditures 1,098

Rental Income 17

Corporate Profits 341

Exports 673

Net Foreign Factor Income 20

Proprietor’s Income 403

Imports 704

(a) Calculate the Gross domestic product using the expenditure approach (6 marks)

(b) Discuss the importance of national income statistics (10 marks)

(c) Discuss the limitations of national income statistics (8 marks)

[TOTAL MARKS: 25]

Question five

Economic development requires low levels of national debt.

a) Discuss factors that have contributed to Zimbabwe’s higher debt[10]
b) Evaluate Zimbabwe’s debt management strategy ZADDS [15]
Page 3 of 4
[TOTAL MARKS: 25]

Question six

The main purpose of the monetary policy statement is to promote a sustainable, effective and
efficient financial sector. Discuss the 2015 monetary statement highlighting the programmes
that are meant to improve performance of financial sector.
[TOTAL MARKS: 25]

END OF PAPER

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