problem 1:

a. Describe the reasons why people demand money?

b. Describe how far estimates of GDP are good measures of national welfare of country.

problem 2:

a. “The Mauritian Economy has gone through a number of structural changes since its independence in 1986”. Discuss.

b. To what extent is international trade advantageous to a small island economy like Mauritius?

problem 3:

prepare short notes (not more than three paragraphs) on any three concepts from the list:

i) Opportunity cost

ii) Price taker and price maker

iii) Differentiation between monopolistic competition and monopoly

iv) Absolute and relative poverty