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problem 1:

i) ‘I fail to see why majority rule would ever be considered a useful means of guiding decision making. It is indecisive and exploitative. There are better ways of reaching correct decision.’ A. Cynic (2001).

prepare down an essay in which you reply to Cynic’s views.

ii) Can both equity and efficiency objectives be accomplished simultaneously? Justify your answer.

ii) You have been asked by Mauritian Government to prepare a report advising it on whether or not the Public Sector must build a motorway linking Pamplemousses to Reduit without passing through centre of Port Louis.

Illustrate how you would undertake this task. What problems would you anticipate to confront in preparing your report? How would you deal with these problems?

problem 2:

The very existence of public goods suggest market failure and hence a need for government production. Do you agree with this proclamation? Justify your answer.

problem 3:

To what extent can political business cycles describe the size and composition of public expenditure?

problem 4:

i) Is free trade always advantageous? Discuss.

ii) A perfectly competitive firm is better than a monopoly firm in terms of economic efficiency.  Discuss with the aid of exs.

problem 5:

i) Critically measure the drivers of economic growth.

ii) To what extent can the multiplier effect illustrate a raise in National Income?

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M97794

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