Assignment:
Question 1. Explain the difference between microeconomics and macroeconomics.
Question 2. What are opportunity costs?
Question 3. What is the difference between fixed costs and variable costs?
Question 4. How does fiscal policy differ from monetary policy?
Question 5. Explain what you understand by the principal-agent problem
Question 6. Explain how a natural monopoly can be (price) regulated
Question 7. Goods are complements if an increase in the price of one causes a decrease in the demand for the other.
Question 8. What is called the increment of output from a one-unit increase in the capital stock, holding all other factors of production constant?
Question 9. What is crowding out?
Question 10. Money has value to society because it performs three socially useful functions. What are those functions of money?