Question 1. Perfect competition and the Monopoly
a. In what ways is the monopoly different from perfect competition? In what ways are they alike? Discuss explaining the conditions necessary for each of these market structures.
b. How and why can the monopoly engage in price discrimination? Give examples.
Question 2. Monopolistic competition & the Oligopoly
a. In what ways is the Oligopoly different from monopolistic competition? In what ways are they alike? Discuss explaining the conditions necessary for each of these market structures, give 2 examples of each
b. Why is it necessary for the oligopoly to engage in strategic pricing and advertising?
Question 3. Supply and Demand of Labor
a. What is a labor market?
b. How is the equilibrium wage arrived at?
c. Discuss the shape of the normal demand curves and the normal supply curve in the labour market. Explain their slopes
d. Explain why the elasticity of demand for a firm's good, and the relative importance of labor in the production process influence the elasticity of demand for labor.
e. Explain what it means to say that the demand for labor is a derived demand?
Question 4. Distribution of Income
Discuss some of the factors that can lead to occupational segregation and show how such segregation can lead to a wage gap between males and females in society
Question 5. The Balance of Payments and Exchange Rates
a. What is the meaning of a Balance of Payment?
b. Explain in detail the components of the major accounts of the Balance of Payments.
c. What is an exchange rate?
d. How do the forces of demand and supply determine the exchange rate between two currencies?
Question 6. International Trade
a. What is the meant by the term Comparative Advantage in the context of international trade?
b. What is GATT and why did countries find it necessary to sign this agreement.
c. Explain in detail 4 of the main barriers to international trade imposed by countries.
d. What are some of the main reasons that countries impose barriers to trade?