question 1a faced with fierce international, Financial Econometrics

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question 1a faced with fierce international

Question 1:

a) Faced with fierce international competition Mauritius should protect its domestic industries, to survive in such an environment. Discuss.

b) "The best way to deal with price rises is to increase income tax and reduce the purchasing power of individuals." Do you agree with this statement?

Question 2:

a) What are public goods, merit goods and demerit goods? Assuming that a private firm is dumping all its wastage in a river nearby leading to pollution, how does this activity lead to a market failure?

b) Discuss how can government's intervention correct for market failure?

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