Question 1:
i) Discuss whether a country should use protectionist measures to favour its domestic firms.
ii) Explain the rationale behind free trade among countries and elaborate on its obstacles.
Question 2:
i) Describe the term inflation and elaborate on the dissimilar types and causes of inflation.
ii) How are inflation measured and why a high rate of inflation is considered to be a major problem?
iii) How can fiscal policy be employed to combat high inflation rates?
Question 3:
i) Completely describe the following concepts:
(a) Price elasticity of demand
(b) Cross elasticity of demand
(c) Income elasticity of demand
ii) Of what use would an understanding of these concepts be to manager of supermarket?