1. Taking stable prices and full employment as two macroeconomic objectives of government, critically write on how fiscal and monetary policies could be used to achieve them.
2. Explain using diagrams why a 10% increase in investment leads to a higher percentage increase in National Income?
3. To what extent can a country actually rely on the principle of Comparative advantage before engaging in international trade?
4. Reducing occupational immobility of labour is the only way of decreasing the level of unemployment. Discuss
5. A country should specialize in the production of the good in which it has the lowest opportunity cost. Discuss.