Q1. Assume you were appoint as an adviser to a developing country and you were versed in the theory of production, the historical role of medicine also the modern-day health production functions studies. Their government seeks counsel on the wisdom of a relative emphasis on health and health investment versus other forms of economic investment. What would be your advice?

Q2. The price of a basket of goods also services in the U.S. is $600. In Canada the similar basket of goods costs 700 Canadian dollars. If the insignificant exchange rate were 1.2 Canadian dollars per U.S. dollar, elucidate the real exchange rate?