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Question 1
‘The consumer is always king in the market place'. Critically examine this statement, highlighting the existence of market imperfections.
Question 2
(a) Discuss the factors that influence private investment in your country.
(b) How can the government promote private investment in your economy?
Question 3
(a) Examine to what extent fiscal and monetary policies may be adopted to stimulate an economy that suffers from demand deficiency.
(b) Can there be growth without inflation? Explain.
Question 4:
(a) Explain how are exchange rates determined?
(b) Analyse the factors that can affect the external value of the Rupee.
(c) Why should the government be concerned about stabilising the external value of the Rupee?
Consider the economy (above) again where the following set of stocks is traded: x 1 =(2,2,0) x 2 =(1,0,3) x 3 =(0,2,4) for the prices (p 1 , p 2 , p 3 )=(1, 1, 1).
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A Korean BBQ restaurant has four workers for washing jobs: Dane, June, Park, and Pola. Each workers eight hours a day and can produce two washing services: Washing rice bowls and w
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2. You recommend spending $10,000 on equipment that will increase sales of your product by $1000 a year and reduce annual operating costs by $800. The equipment has 10-year lifetim
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