Reference no: EM132930869

QUESTIONS. Kindly provide detailed answers to the following questions

1.Despite the advantages of large firms, many small businesses are very successful. Give three reasons that justify this statement.

2.Suggest two possible reasons for the government's privatization policy.

3.(a) Distinguish between the public sector and private sector of an economy.

(b)Explain why some goods and services are provided by the public sector in your country.

4.Explain two different types of economies of scale from which a large retailer might benefit

5.State and explain three ways in which governments could encourage businesses to invest

6.How might prospects of small businesses be affected by a very low level of economic growth?

7.How might a fall in the external value of a country's currency cause inflation?

8.(a) Define the term "free market economy."

(b) State three legal controls which affect the way in which business operates.

9.Explain why a producer of televisions might be worried by the possibility of an increase in the rate of interest.

10.Explain two possible threats resulting from switching from a central planning to an economy based on market forces to manufacturers.