• Please answer 2 questions, one from each section.
• Read the questions carefully. Before answering the questions, spend a few minutes to make some brief notes.
• Only authorised dictionaries should be used during the examination.
• If you require more writing paper or have any queries, please raise your hand.
• Please allow sufficient time to complete two questions (one hour for each question).

• Students will not be allowed to leave the room 15 minutes before the end of the examination. If you have any spare time, check over your answers.

1. Critically examine the different theoretical perspectives on the firm.

2. ‘While long-term market contracts can be an improvement on spot markets, they are not without their problems.’ Explain this statement.

3. In what ways are the ‘institutional’ theories of labour markets and practices better than the neo-classical economic orthodoxy?

4.Giving examples, explain the following terms:

• critical realism
• ‘just-in-time’ system
• regulatory capture in privatised industries
• trust and norms in economic practices

5. ‘The evolutionary framework best explains the nature of the innovation process.’ Discuss this statement.

6. Compare and contrast the policy implications of the different theoretical frameworks of technical change and innovation.

7. Assess the claim that corporations have moral and social responsibilities.

8. Giving examples, explain the following terms:

• tacit knowledge
• knowledge-based economy
• ethical codes
• workers’ right of privacy