Explain the term balance of payments, Business Economics

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QUESTION

1) Explain the term Balance of Payments (BOP) and how a government would intervene to correct a BOP deficit.

2) Explain the protectionist measures that a government can adopt to safeguard the growth and interest of domestic firms and what are the key reasons for such protectionist measures.

3) Is National Income a true and fair measure of standard of living? Justify your answer.

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