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Question 1:
Critically analyse the costs of inflation. Which of these items is likely to have encouraged many governments in their adoption of inflation as public enemy number one?
Question 2:
(a) Distinguish static and dynamic gains from trade.
(b) Explain clearly, with the help of diagrams, the welfare effects of an import tariff assuming
(i) the economy is small (ii) the economy is large
Question 3:
Write notes on ALL of the following: (a) Functions of the Bank of Mauritius (b) International Competitiveness (c) Budget Deficit and Fiscal Stance (d) Government in the Circular Flow of Income
You are the manager of a firm that receives revenues of $50,000 per year from product X and $80,000 per year from product Y. The own price elasticity of demand for product X is -3,
sticky price model assumptions
Can the federal government go bankrupt? Explain.
Determine the Problems evolved with Consumer Price Index To illustrate problems involved in calculating CPI we consider MP3 players. If you measure average price of MP3 players
Can you think of examples where the government does not intervene enough when it comes to consumer safety and product information? Examples where too much intervention is the case
link of monetary account with other sectors and its meaning
In 1 to 2 sentences respond to the following comment. "Cleaning your own house is not counted in gross domestic product because it does not represent economic production."
(A) What is the difference between a movement along a demand or supply curve and a shift of one of these curves? Why is it important to distinguish between the two? What mistake
Suppose that the government wishes to decrease the market equilibrium monthly rent by increasing the supply of housing. Assuming that demand remains unchanged, by how many units of
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