Q. a) Explain the following terms: i) Elasticity of demand and supply. (5 marks) ii) Indifference Curve. (5 marks) b) Explain the concept of production possibility curve and support your Read More …
Tag: 1.3
Opportunity Cost Q1
Q.What is “Opportunity Cost” and explain your understanding of this term in economics. A.Opportunity cost is cost of forgoing a possible profit because the same resource is used to earn Read More …
Economic Problems in Built Environment
Q.What are the basic economic problems of built environment? A.The three basic economic problems are: What to produce? How to produce (how much)? To whom it is produced? The above Read More …
Perfect Competition
Q. What is ‘Perfect Competition’? A. Perfect competition (sometimes called pure competition) describes markets such that no participants are large enough to have the market power to set the price of a homogeneous product. Read More …
Macro and Micro Economics Q1
Q. a) Economics is traditionally divided into two main areas i.e. Micro economics and Macro economics. Explain. b) Elaborate the meaning of opportunity cost with examples. c) Illustrate in diagrammatic Read More …
Economic Principles 2
Q.List out the 10 principles of Economics by Mankiw. A.The list below as extracted from Mankiw (2012) ‘Principles of Economics’. Ref: Mankiw, N. Gregory. 2012. Principles of Economics, 6Ed. South-Western Cengage Learning. Read More …
Economic Principles 1
Q.What is the most significant of ‘the invisible hand’ by Adam Smith? A.The free market economy is fueled by the ‘invisible hand’ and demand and supply is determined by the Read More …