Reference no: EM132500261

Mauritius Government Economy and Society

Problem 1:

a) Using an appropriate example differentiate between the short run and the long run period.

b) Show diagrammatically how the following will affect the price and quantity of a market which is initially in equilibrium.
i. A decrease in the cost of production of a rival good.

ii. An aggressive advertising campaign in favour of the good/service concerned coupled with an increase in subsidy.

c) Using appropriate diagrams compare and contrast the long-run equilibrium situation of a firm facing a perfectly elastic demand with that of a firm which also represents the industry.

d) Explain the terms ‘Fiscal Policy' and ‘Monetary Policy'.

e) To what extent can Fiscal Policy be used to control the high rate of unemployment resulting from the outbreak of the pandemic Covid-19?

Problem 2:

a) According to you what are the different types of EoSthat the telecommunications company like Emtel might benefit from? Justify your answer.

b) Critically analyse the different protection tools that Mauritius has used to restrict imports and/or protect its domestic firms.

c) China is one of the world's fast growing economies with an economic growth rate of 6% as at 2018. Does this high rate of economic growth also imply higher welfare and well-being for its citizens? Discuss.