Question 1:
i. Explain the likely effects of recession on a government’s budget.
ii. How is the operation of fiscal policy supposed to influence the level of economic activity within an economy?
Question 2:
i. Explain what you understand by the phrase public goods and merit goods.
ii. Evaluate the role and functions of Bank of Mauritius in ensuring monetary stability in economy.
Question 3:
i. Make a distinction between a tariff and quota and their economic implication for the Government in international trade finance.
ii. What do you understand by the term Balance of Payments (BOP) and how Government would intervene to correct BOP deficit?
Question 4:
i. What is Economic growth and how does it benefit an economy?
ii. (a) Describe the term Externality, giving examples of negative and positive externalities.
(b) How government deals with these externalities?