problem 1:

i) Discuss whether a country should use protectionist measures to favour its domestic firms.   

ii) describe the rationale behind free trade among countries and elaborate on its obstacles. 

problem 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?

problem 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?