Agriculture plays central role in providing important source of livelihood to the farmers as well providing stable source of food to the urban population. Therefore, government often intervene in the agriculture sector to control equilibrium quantity and price to maximize aggregate economic welfare. Besides controlling the price by imposing minimum price, government can sets market price of product above free-market level by buying outputs that are required to maintain sudden price of the good. Discuss and compare the use of high minimum price and lump-sum subsidies in agricultural market. Use graph where ever possible. Question 21 "Broadly empirical literature on import substitution and export promotion strategy suggests that neither strategy can bring desired results when pursued in isolation. Rather, strategies have to be fine tuned to economic. social and political reality of the country in question". Discuss the above statement. Question 22 There is increasing emphasis on Foreign Direct Investment (FDI) in the developing countries to facilitate growth and development. Discuss the importance of FDI and ways in which Pacific Island countries could attract more FDI inflows into their economies