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Question 1:
(a) How do taxes affect the economic well-being of market participants?
(b) Explain the link between fiscal policy and budget deficit.
(c) What are the factors that need to be considered if any Government is to implement a good fiscal policy framework?
Question 2:
Write briefly on any five of the following. (a) Free rider problem (b) Negative and positive externalities (c) Public goods (d) Automatic stabilisers (e) Self-interest theory of government (f) Social Production Possibility Schedule
What are institutions? Institutions are formal organisations as like: • Government : the group of some people and institutions who control and manage a country Civic socie
Is the Washington Consensus actually a consensus? The Washington agreement thinking dominates development thinking in the developed world but is challenged through less develo
For any stock splits (if there were any it will look like the screen below) compare the actual and theoretical price adjustment. For example, on the day that a 2-for-1 split is ef
business environment
What is culture and human capital? Human capital is the knowledge, experience and skills of employees and can be raised by investing into education, job training and health
What is the function of multinational companies into the promotion of development? A multinational or transnational (TNCs) company operates within two or more countries across
How can the savings gap be plugged? Low savings are a barrier type to growth. All developing countries have low incomes therefore low savings. A savings gap can be met through
Financial engineering deals with the design of new assets. Draw the payoff (at t=1) of the following bull butterfly spread: Purchase 1 call with exercise price a Sell 2 calls
Are international capital flows a problem? Problem: Capital flows can have an adverse outcome onto: a. Balance of payments (BoP): Shortly term capital inflows can be like:
constraints
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