MBA BUSINESS ENVIRONMENT

Instructions to candidates Answer THREE (3) questions only. All questions carry 25 marks each. raw dia!rams where a""ro"riate. 1. The discovery of BSE in cattle had a devastatin effect on the !ar"et for #eef in the 1$$%s. After a ood deal of &revarication' the British overn!ent anno(nced that the disease co(ld s&read to h(!ans. These ca(se the EU to #an the sale of British #eef in the EU o(tside the U). The #an *as only lifted in 1$$$' and then only s(#+ect to very strict conditions. In the U)' the effect on cons(!&tion see!ed only short,ter!' #(t it n(d ed !any &eo&le into #eco!in ve etarians. a. #. c. -ra* a dia ra! to sho* the effect of BS. on the !ar"et for #eef. -ra* a dia ra! to sho* the effect of BS. on the !ar"et for ve etarian dishes. /ho #enefited fro! these develo&!ents0

1. 2Ed(cation is a #asic ri ht. 3(st as n(rsery,school thro( h hi h,school is free' so' too' sho(ld a (niversity ed(cation #e free and (aranteed to every individ(al.4 a. #. /hat *o(ld #e the o&&ort(nity cost of &rovidin free ed(cation for everyone0 Is &rovidin this ed(cation free fro! the &ers&ective of society as a *hole0 -ra* a dia ra! ill(stratin the case of a &erfectly co!&etitive fir! that is earnin an econo!ic &rofit. In the dia ra!' sho* the a!o(nt of the econo!ic &rofit. In a dia ra!' sho* the case of a &erfectly co!&etitive fir! in #rea",even sit(ation. -ra* a dia ra! to ill(strate the case of a &erfectly co!&etitive fir! that is inc(rrin an econo!ic loss #(t is contin(in to o&erate. Be s(re to incl(de the AV. c(rve. Sho* the a!o(nt of the econo!ic loss. /hy *ill econo!ic &rofits #e 7ero at lon ,r(n e8(ili#ri(! in a &erfectly co!&etitive ind(stry0 Be s(re to !ention the roles &layed #y econo!ic &rofits and losses.

5.

a6 #6 c6 d6

9.

:o* can *e achieve and !eas(re econo!ic ro*th0 E;&lain the advanta es and disadvanta es of econo!ic ro*th. -o yo( thin" econo!ic ro*th is a desira#le o#+ective for overn!ent0 a. #. Startin fro! a &osition of lon ,r(n e8(ili#ri(! analy7e the effects of an e;&ansionary fiscal &olicy on (ne!&loy!ent' =-> and the rate of inflation. E;&lain *hy inflation is re arded as a &ro#le! #y overn!ents.

<.

?S.