Problem 1:

(a) The Mauritian government is now increasingly involving the private sector in the development of the economy. How can government support effective private sector involvement?

(b) Discuss the implications of privatisation for a small island economy like Mauritius.

Problem 2:

(a) Discuss the consequences of adverse selection and moral hazard for the insurance car market.

(b) Consider the example of any project which your Ministry wants to undertake over a given period of time. Outline all the necessary information you will require and analyse the different steps involved when deciding on the feasibility of the project.