May/June 2005

Identify two benefits Botswana offers to foreign investors.

Trade unions

Explain the economic theory of wage determination in perfect competition.

Long-run costs and economies of scale

Explain how a rise in consumer spending affects China’s national income.

Economic growth

Explain the meaning of the statement above.

Fiscal policy

Explain how firms are said to behave in oligopolistic markets and discuss how far this is supported by the above statement.

7.6

Discuss the assertion that the market system is unable to allocate resources efficiently.

Behavioural economics

Explain two methods used in national income statistics to calculate gross domestic product.

National income statistics