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1.Economic Growth in a Developing Nation Suppose you work as an economic analyst in an international research organization. Monitoring economic growth and overall macroeconomic conditions across different parts of the world is a routine part of your job. Suppose you have been asked to assess the growth situation in a small developing island nation. It is a country abundant in labour and some natural resources. The capital to labour ratio is low. It has a free market economy. You have found that this country does not have a very strong and healthy banking system, however, the political system is stable and the government does a good job protecting property rights. (a) Based on the information given, assess this country's prospects for growth. (b) Recommend two things that would enhance the country's growth. [This question is about a hypothetical country, you don't need to use any real-world data to answer this question.

2.A decrease in fixed costs implies that Marginal revenue will increase; marginal cost will decrcase Marginal revenue will not change, marginal cost will decrease. Neither marginal revenue nor marginal cost will change. Both marginal revenue and marginal cost will decrease.