Answer all the questions described below:
Section A: Long Answer Questions. (Answer in around 500 words each)
Question 1: Give a short outline of National Income associated concepts. Describe three methods for measurement of National income.
Question 2: What are the benefits of International trade? Describe Heckscher-Ohlin’s (version) approach of international trade.
Section B: Medium Answer Questions. (Answer in around 250 words each)
Question 3: Briefly explain the cardinal utility approach to consumer behavior. Describe how diminishing marginal utility is inter-linked to Marshallian law of demand?
Question 4: Describe with diagram the behavior of the short-run cost and long run cost of a firm. Give illustration in support of your answer.
Question 5: Compile a chart for different forms of market structure. Write their suppositions and equilibrium conditions in short (diagrams).
Question 6: Critically examine the different theories of demand for money.
Section C: Short Answer Questions. (Answer in around 100 words each)
Question 7: Define the given terms:
a) Phillips Curve
b) Externality
c) Income elasticity of demand
Question 8: Distinguish between the given:
a) Homogenous and Non-homogenous production function.
b) Balance of payments and Balance of trade.
c) Goods market and money market.
d) Real and Nominal rate of interest.
e) Stock and flow variables.