Question 1:
(a) As a small island economy , Mauritius had to face a number of constraints in order to transform itself from mono-cop economy into a well diversified middle income economy today . Highlight the main factors including economic policies which have contributed to the successful transformation.
(b) What are the obstacles that limit further economic growth today?
Question 2:
Business models today are far from the classical model based on perfect knowledge and certainty and profit maximization. Discuss in the light of business sector in Mauritius.
OR
(a) Distinguish between ‘debt finance' and ‘equity finance' as modes of financing capital of a private firm.
(b) Discuss the various channels through which the government could influence private investment in an economy in an attempt to boost up the level of economic activity?