1. Differentiate between micro economics and macro economics. Write any two examples of macroeconomic variables.
2. Explain price elasticity of demand. How is it measured?
3. Explain Average Cost (AC) and Marginal Cost (MC) in detail.
4. Write down the properties of Indifference Curve?
5. Differentiate between monopolistic competition and monopoly. In which of these markets demand curve facing a firm is more elastic?
6. What do you understand by term value added. What is its significance in national income accounting?
7. Determine the value of investment multiplier if Marginal Propensity to Consume (MPC) is 0.2.
8. What do you mean by Involuntary unemployment?
9. Write down the difference between national income at constant prices and national income at current prices? Which of these is a true indicator of economic growth?
10. Write down the major objectives of monetary policy?