Question 1:
(a) Describe the relationship between scarcity, opportunity and cost choice.
(b) How is choice regarding the use of scarce resources made in market economy?
Question 2:
(a) In brief explain, what is meant by
(i) Price Elasticity of the Demand
(ii) Income Elasticity of the Demand
(iii) Cross Elasticity of the Demand
(b) “Consumers and producers pay equivalent amount of a per-unit tax.” Explain.
Question 3:
(a) Describe the major causes of inflation in Mauritius.
(b) Critically analyse the costs of inflation. Which of these items is likely to have encouraged the Mauritian government in its adoption of inflation as public enemy number one?
Question 4:
(a) Clearly describe the types of unemployment which might consist of the unemployment level that pertain to the Mauritian economy.
(b) There is no relationship between inflation and unemployment either in short run or in the long run discuss.
Question 5:
Write concise notes on any three (3) of the following:
(a) National income and standard of living.
(b) Globalization and its implications for developing countries.
(c) Monetary policy and fiscal policy.
(d) Market failure.
(e) Provision of public goods and merit goods.