Question 1:
Illustrate the concept of circular flow of income.
Question 2:
Comment on view that ‘GDP is not the best measure to appraise economic growth and standard of living. Real GDP per capita is a better measure’.
Question 3:
What do you understand by the term economic growth? Identify and comment briefly on the possible contributors to economic growth.
Question 4:
What is inflation and how is it evaluated?
Question 5:
How inflation caused?
Question 6:
Illustrate critically how can a government combat the problem of the inflation?
Question 7:
Write concisely on the following. (Each part carries equal marks)
i) Frictional and Cyclical (demand deficient) Unemployment.
ii) Monopolistic Competition.
iii) Market failures.
iv) Absolute and Comparative Advantage.
v) Maximum and Minimum price.