This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: subsidy to an industry. 3. A monopolist decides to maximize profits rather than revenue. Using a diagram, explain how price and quantity will change. 4. Explain two policies that a government might use to deal with the problem of demand-deficient (cyclical) unemployment. 5. How would deterioration in the terms of trade affect the current account of a country? 6. With the help of a diagram, explain how a buffer stock scheme is expected to work. & 2 & N04/3/ECONO/HP2/ENG/TZ0/XX 8804-5102...
View Full Document
- Spring '10
- Economics, IB Diploma Programme, DIPLOMA DEL BI