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    Contents - Principles of Economics

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    noiseaholic22
    This document outlines principles of economics topics to be covered across 8 sections: Section 1 discusses basic economic concepts like scarcity, opportunity cost, and different economic systems. Section 2 covers demand and supply including price elasticity. Section 3 examines consumer choice and utility maximization. Section 4 analyzes production and costs in the short-run. Section 5 explores perfect competition and monopoly market structures. Section 6 measures national income and inflation. Section 7 discusses fiscal and monetary policy tools. Section 8 provides practice problems applying the economic concepts.

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    Contents - Principles of Economics

    Uploaded by

    noiseaholic22
    55 views4 pages
    This document outlines principles of economics topics to be covered across 8 sections: Section 1 discusses basic economic concepts like scarcity, opportunity cost, and different economic systems. Section 2 covers demand and supply including price elasticity. Section 3 examines consumer choice and utility maximization. Section 4 analyzes production and costs in the short-run. Section 5 explores perfect competition and monopoly market structures. Section 6 measures national income and inflation. Section 7 discusses fiscal and monetary policy tools. Section 8 provides practice problems applying the economic concepts.

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    Contents_Principles-of-Economics

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    This document outlines principles of economics topics to be covered across 8 sections: Section 1 discusses basic economic concepts like scarcity, opportunity cost, and different economic systems. Section 2 covers demand and supply including price elasticity. Section 3 examines consumer choice and utility maximization. Section 4 analyzes production and costs in the short-run. Section 5 explores perfect competition and monopoly market structures. Section 6 measures national income and inflation. Section 7 discusses fiscal and monetary policy tools. Section 8 provides practice problems applying the economic concepts.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    55 views4 pages

    Contents - Principles of Economics

    Uploaded by

    noiseaholic22
    This document outlines principles of economics topics to be covered across 8 sections: Section 1 discusses basic economic concepts like scarcity, opportunity cost, and different economic systems. Section 2 covers demand and supply including price elasticity. Section 3 examines consumer choice and utility maximization. Section 4 analyzes production and costs in the short-run. Section 5 explores perfect competition and monopoly market structures. Section 6 measures national income and inflation. Section 7 discusses fiscal and monetary policy tools. Section 8 provides practice problems applying the economic concepts.

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    © All Rights Reserved
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    Download as pdf or txt
    of 4

    Contents: Principles of Economics

    01

    1. What economics is all about? Write down ten principles of economics. Briefly
    discuss the basic or central problems of an economy.
    2. Define opportunity cost. What economic model can we use to measure the
    opportunity cost (answer-production possibility frontier)?
    3. Define economic system. Discuss the features of different economic system.

    02 & 03

    1. Describe the law of demand with some of its exceptions.


    2. Describe the law of supply with some of its exceptions. Why supply curve of labor
    is backward-bending?
    3. Describe the non-price factors of demand and supply
    4. What do you understand by the term ‘market equilibrium’? What are the causes of
    shifting product market equilibrium?
    5. Graphically explain consumer and producer surplus.
    6. What is the concept of price elasticity of demand? Describe different conditions of
    elasticity.
    7. If price of ice-cream decreases from 15 to 10 taka, its demand increases from 20 to
    30 unit. Measure price elasticity of demand for this product.
    8. Describe the use of price elasticity of demand, income elasticity of demand and
    cross elasticity of demand.
    9. Graphically explain perfectly elastic and perfectly inelastic demand with example.
    10. Define cross elasticity of demand. How will you interpret that, cross elasticity of
    demand between prepaid service of Banglalink and Teletalk is +2.
    11. With graphical representation, discuss the relationship between total revenue and
    elasticity.
    12. Describe the factors those influence the elasticity of demand

    04

    1. Define marginal utility. From law of diminishing marginal utility graphically


    explain the relationship between TUX and MUX.
    2. With suitable example, explain the process to explore marginal utility from total
    utility.
    Contents: Principles of Economics

    3. Suppose a total utility (TU) of goods X is given as-


    Quantity of Goods X (QX) 0 1 2 3 4 5 6 7 8
    Total utility of Goods X (TUX) 0 10 18 24 28 30 30 28 24
    Derive Marginal Utility (MUX) schedule of goods X from the given TUX.
    4. Define indifference curve? Write down the characteristics of an indifference curve.
    5. In case of maximizing utility, point out the condition of consumer equilibrium.
    Explain water-diamond paradox.

    05:

    1. Define production function with example. Describe the relationship between


    average product and marginal product.
    2. With proper example, graphically explain law of diminishing returns.
    3. Define economies of scale and economies of scope with example.
    4. Briefly discuss the types of returns to scale.
    5. Differentiate between short run and long run in output and cost analysis.
    6. Describe different cost related concepts (FC, VC, TC, AVC, AFC, ATC, and MC).

    7.
    Total Total
    Total cost
    Labor Output fixed cost variable cost
    Case (TC)
    (worker per day) (pen per day) (TFC) (TVC)
    (dollars per day)
    A 0 0 25 0 25
    B 1 4 25 25 50
    C 2 10 25 50 75
    D 3 13 25 75 100
    e 4 15 25 100 125
    f 5 16 25 125 150
    From the above data find out MC, AFC, AVC and ATC and graphically analyze, why
    short run average total cost curve is looked ʻU’shaped.

    8. Given, the short run total cost curve, TC= 100+50Q−12Q2+Q3 where TC is total
    cost and Q is level of output. Calculate TC, ATC, AVC and MC when the firm
    produces 10 units of output. Calculate the level of output at which AVC is
    minimum.
    9. How can be the concept of marginal revenue product and marginal factor cost used
    in determining the optimum size of work force in a manufacturing organization?
    Contents: Principles of Economics

    06:

    1. Write down the characteristics of perfect competition and monopoly market.


    2. Graphically explain, why firms in a perfectly competitive market become price
    taker but monopolist become a price maker?
    3. What are the barriers to entry in a monopoly market? Briefly describe the welfare
    cost of monopoly Market.
    4. Graphically represent economic profit, loss, business with loss and shut down
    situations in a perfectly competitive and monopoly market.
    5. Let, GP and Banglalink are the only mobile phone network service provider in
    Bangladesh. They collude and agree to share the market equally. If neither firm
    cheats on the agreement, each makes $1 million profit. If either firm cheats, the
    cheat makes a profit of $1.5 million, while the complier incurs a loss of $0.5 million.
    If both cheat, they break even. Neither firm can monitor the other’s actions.
    Construct the payoff matrix and find out the dominant strategy/Nash equilibrium.
    6. Let, a game with two players (Jack and Rose) who cannot communicate and in
    which each player is asked a question. The players can answer the question honestly
    or lie. If both answer honestly, each receives $50. If one player answers honestly
    and the other lies the honest player get $500 and the liar receives nothing. If both
    lie, then each receives $100. Construct the payoff matrix and find out the dominant
    strategy/Nash equilibrium.

    07

    1. Differentiate between GDP and GNP. Describe the income and expenditure
    methods of measuring national income.
    2. With suitable example, explain the difference between nominal and real Gross
    Domestic Product (GDP).
    3. Pointing out the limitations of real GDP, explain whether GDP is a suitable
    indicator to describe the actual economic situation.
    4. What is the concept of inflation? Describe different types of inflation.
    5. How unexpected inflation creates problem for the economy?
    6. With the help of consumer price index (CPI), describe the process of measuring
    inflation.
    7. Explain that, an increase in money wage is not an increase in real wage.
    Contents: Principles of Economics

    8. Write the main proposition of phillip’s curve.

    08

    1. What is the concept of fiscal policy and monetary policy? Write down the
    instruments to formulate those policies and describe the mechanism.
    2. Define expansionary and contractionary fiscal and monetary policy and describe
    the purpose of using those policies.

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