Question 1:
Illustrate out the concept of opportunity cost, by using the production possibility curve.
Question 2:
What are the elemental problems of economy? Explain and discuss how the command economy distinct from the free market economy in dealing with resource allocation problems.
Question 3:
Write down the strengths and weaknesses of mixed economy.
Question 4:
Make a distinction between short-run and long-run costs.
Question 5:
Compare and contrast the short-run and long-run output decisions of perfectly competitive firm and the monopoly.
Question 6:
Discuss and illustrate long run efficiency under both kinds of market structures?
Question 7:
With the aid of diagrams, illustrate how the price and quantity of potatoes will change under the different circumstances:
(i) A severe drought affecting its production
(ii) Consumers expect a prospect rise in prices of potatoes; and
(iii) A new production method is adopted to raise efficiency.