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Problem 1:
a. Use the circular flow model to explain the concepts of injections and withdrawals.
b. Explain the concept of budget multiplier.
c. Using the concept of multiplier, show how a country's involvement in international trade impacts on its economy.
Problem 2:
a. Describe clearly what is inflation and its main causes.
b. Distinguish between the main types of unemployment.
c. Describe the relationship between inflation and unemployment in the short run and long run.
Problem: i) What might be the possible causes of inflation according to economic theory? ii) Taking stable prices and full employment as two macroeconomic objectives of gov
What is indifference curve and its properties?
Identify the four essential economic activities. The four main economic activities are: a) resource maintenance, b) production, c) distribution, and d) consumpti
discuss the implications of various market structure for price determination
Division of Labor The occupation or breaking down of jobs into simple and repetitive responsibilities.
(a) Differentiate between a command economic system and a laissez-faire. (b) Assess to what extent it is advantageous for an economy when it moves from a controlled to a free-e
Problem : (a) With reference to the characteristics of market structure, explain why the market for powdered milk in Mauritius is an appropriate example of monopolistic compet
how advertisement affects the sales revenue of a firm ?
Strengthening the Financial Instruments - rationale in era of globalisation: With this in view, following suggestions can be made: i) Finance must be conditioned on a poli
A firm in a perfectly competitive product market takes the price of the product as given. Similarly, a firm in a perfectly competitive factor market takes the price of the factor
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