IMPORTANT QUESTIONS;

TEN MARKS QUESTIONS

1. explain the uses and limitations of macro economics.
2. explain the circular flow of national income in two and three sector economy.
3. explain the classical theory of employment.
4. briefly explain the Keynesian psychological law of consumption.
5. what is business cycle. explain the phases of business cycle.
6. briefly explain Schumpeter’s innovation theory of trade cycle.
7. explain the merits and demerits of direct tax.
8. explain merits and demerits of indirect tax.
9. explain the causes for increasing public expenditure in recent years.
10. explain the types of public expenditure.

SIX MARKS QUESTIONS

1. importance of estimation of national income.
2. need of social accounting
3. multiplier theory
4. liquidity preference theory of interest.
5. control of business cycle
6. Hawtrey’s theory of business cycle.
7. principles of taxation or canons of taxation.
8. effects of tax
9. methods of repayment of public debt.
10. effects of public expenditure.