Questions:
Course Learning Outcomes:
1. Explain the principles of economics and the concept of economic problem.
2. Discuss the effects of the forces of supply and demand on market outcomes.
3. Apply the various types of elasticity’s and use of government policies of price controls and ceilings on markets outcomes.
Note:
1. Zero tolerance for plagiarism.
2. There will be an individual oral viva for the Mid Term Assignment.
Section-1 (CLO-1) (Marks 10)
Q1.a. Explain the principal of decision making, how people make decisions? (4 = Marks)
Q1.b. Explain in detail the difference between the principles of interactions among people and the principles of the economy as a whole. (6 = Marks)
Section-2 (CLO-2) (Marks 10)
Q2.a. Explain the law of demand with the help of a table and diagram? (3 Marks)
Q2.b. Analyze the changes in Equilibrium in the following three steps to determine the effects of any event,
i. Decide whether event shifts S curve, D curve, or both. (2 Marks)
ii. Decide in which direction curve shifts. (2 Marks)
iii. Use supply—demand diagram to see how the shift changes equilibrium P and Q. (3 Marks)
Section-3 (CLO-3) (Marks 10)
Q3.a. Explain the following with help of formula. (1 + 1 +1 =3 marks)
a. Price elasticity of demand
b. Income elasticity of demand
c. Cross elasticity of demand
Q3.b. Explain the application of price elasticity and total revenue.. (2 Marks)
Q3.c. The price elasticity of demand is closely related to the slope of the demand curve.
By the rule of thumb:
The flatter the curve, the bigger the elasticity.
The steeper the curve, the smaller the elasticity
Explain the Five different classifications of D curves (5 Marks)
