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Argue how free trade rather than protectionism can favour contries
(30 marks)
Suppose the utility function for Osa is given U = f (Y, X) = X0.5 Y0.5. Given that the price of commodity X is Kshs. 10 per unit and that of community Y is Kshs. 12 per unit. Using Lagrangian multiplier technique determine units of the two commodities Osa will buy given an income of Kshs. 48,000 in order to maximize her utility, then compute both the values of U and lambda and provide an economic interpretation for lambda.
Assets
. Required reserves. X
.Excess reserves. R50 million
Liabilities
Deposits Y
The required reserves ratio is 10% .what is the value of MR bank's deposits from the given options.
I.R50 million
ii.R55.6 million
iii.R10 million
iv.R45 million
a) Define the following terms
1.Economic integration
2.economic growth
3.Economic development
B).Describe any two types of economic integration except a free trade area
C)Discuss the advantages and disadvantages of a free trade area as a form of economic integration .
D) Discuss advantages and disadvantages of SADC
What considerations might cause one nation to choose to operate as a market economy and another as a planned economy?
Suppose that you have been chosen to be on a blue-ribbon panel of experts to determine how well or poorly the economies of the world are operating. Your task is to come up with a checklist of five criteria by which different economies can be judged. Which five factors would you pick as criteria? Why?
What is the invisible hand doctrine and why is it important for laissez-faire capitalism? How are the British Industrial Revolution and the U.S. industrial boom similar?
Identify the strengths and weaknesses of a planned economy. Explain what we mean by planning failure.
