Question 1(1) Explain – with the aid of a diagram if helpful – “the Circular Flow of Income Model”. Discuss how and why the different sectors shown in the circular flow of income model can affect the economy. (25 marks)Question 2Outline the main theory as to why international trade occurs. List and explain reasons why the theory of international trade does not work perfectly in practice. (25 marks)Question 3(i) Explain the following terms: Marginal Cost; Total, Average and Marginal Revenues. Why is it important for a company to know what its Marginal Costs and Revenues are? (20 marks)(ii) Define and...