Question 1: Illustrate the two features of resources which give increase to an economic problem?
Question 2: What happens to total expenses on a commodity when its price drops and its demand is the price elastic?
Question 3: What occurs to equilibrium price of a commodity if there is a raise in its demand and reduction in its supply?
Question 4: Illustrate the meaning of the equilibrium price with appropriate examples.
Question 5: What is meant by the term cost in economics?
Question 6: Illustrate any three factors which cause a raise in the demand of a commodity.
Question 7: What will be the price elasticity of the supply at a point on a positively sloped, straight line supply curve?
Question 8: Describe the shape of a production possibility frontier. Describe the Central problem ‘how to produce’.
Question 9: How does the nature of a commodity affect its price elasticity of the demand?
Question 10: Describe the modifications which will occur in the market for a commodity if the prevailing market price is less than equilibrium price.