Directions: Answer all the following questions based on given situation.

1. Discuss in details the effect of philosophical ideas of Adam Smith (5 marks) and Karl Marx (5 marks) in the business corporations. (Total =10 Marks).

2. Most widely propagated explanation why poor underdeveloped countries have failed to grow economically is that they are trapped in vicious circles of poverty- These vicious circles of poverty operate both on the supply and demand sides of capital formation. Draw conclusion (Total =10 Marks).

3. Demonstrate the vicious circle of poverty. Illustrate how vicious circle of poverty can influence labour and technology in the economic growth of a country. (10 marks). (Marking Scheme: 4 marks for demonstration and 6 marks for illustration)