Image via: NeoClassic

Image via: NeoClassic

Page 2 of Paper

Discuss the policies a government may use to influence the exchange rate of its currency.

[25]

Discuss the benefits a country gets by joining regional trading blocs such as the Southern Africa Development Community (SADC).                    [25]

10    (a) Explain reasons for imposing indirect taxes.                      [10]

(b) Discuss the effectiveness of policies government may use to redistribute income and wealth in your               country.                     [15]

11      (a) With reference to Zimbabwe, explain

(i) structural unemployment,

(ii) demand-deficiency unemployment,

(iii) real wage unemployment.                                           [12]

(b) Discuss the effectiveness of the measures a government may use to reduce unemployment in an                    economy.     [13]

12      (a) Explain the differences between economic growth and economic development. [10]

   (b) Evaluate the benefits of international financial institutions such as the International Monetary Fund           and Word Bank in the growth and development of a developing country.   [15]

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