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Question 1:
i. Explain the likely effects of a recession on a government's budget?
ii. How is the operation of fiscal policy supposed to affect the level of economic activity within an economy?
Question 2:
i. Explain what you understand by public goods and merit goods. ii. Evaluate the role and functions of the Bank of Mauritius in ensuring monetary stability in the economy.
Question 3:
i. Distinguish between a tariff and a quota and their economic implication for the Government in international trade finance?
ii. What is a Balance of Payments (BOP) and how Government would intervene to correct a BOP deficit.
Question 4:
i. Explain what is Economic Growth and its potential benefits to the economy.
ii. Explain the term Externality, giving examples of positive and negative externalities and how government deals with these externalities.
It has been accepted to most policy and development economists that among the most important sets of institution in an economy are those that provide for enforcement of contracts.
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Public Economics can broadly be understood as that Economics which deals withpublic intervention in the economy. Its domain is supposed to encompass rationalefor public interventio
Explain how the price system answers the five fundamental questions of economics, and talk about at least two of the short-comings of the capitalist price and market system.
Q. Who permits government whatever it does? The simple answer can be: people in a democracy and the monarch/dictator in a monarchy/dictatorship. But neither monarchy exists in
what is volume of production and the factors influencing them
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