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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
Consider a Cournot duopoly. The market demand is p=190-q1-q2. Firm 1's marginal cost is 40, and firm 2's marginal cost is also 40. There are no fixed costs. A. Derive every fir
1) Between mid 2008 and mid 2009 measured RGDP in the economy fell by 3.8% as the US economy sank into a recession. Over that same time period total employment in terms of hours wo
Discuss, using examples the economic consequences of a sudden monopolization of an industry that had been previously been competitive
Use short notes and illustrations to answer the following questions: i) Distinguish between an indifference curve and an isoquant ii) Distinguish between substitution and inc
What is Rostowís model? Rostowís Stages of Growth model argues to attain modernity all countries pass through similar stages of development as explained as follows: a. Sta
QUESTION 1 (a) Explain clearly the various sources of Industrial Law (b) The mutual consent of the contracting parties is required for a contract of employment to be valid, but
optimal use of variable input
Distribution of benefits for transferring drivers to transit during a congested morning commute A residential suburb has N = 30,000 commuters who drive alone to jobs in a cen
how the concept of elasticity used for policy formulation
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
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