Foundation of economic - First three question in micro economic last 2 questions from macro-economic.
Question 1: - price ceiling and floors?
- Draw a diagram and explain
- Who win and who loose in different group
Question 2: - perfect competition?
What can happen in short run?
Describe the diagram about above normal profit.
Make a loss but stay in business.
Who could make business profit and losses
- 2 thing revenues more than cost
- Cost
- R>C than profit, R
Imagine in perfect competition the price goes up.
Imagine the cost goes down price goes down.
Result above normal profit.
Describe short run and long run with diagram.
Question 3: - learn the elastic formula, make sure you know what should business do to make more profit?
Its depend on elasticity?
Question 4: - explain the mandatory policy?
What reserve bank do?
Why this is week and strong.
Explain open market operation
Bank sell bond pieces of paper.
Question 5: - explain the Fiscal policy?
If economic well or if economic doing bad.
What will govt do?
Explain in diagram.