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Question: 1 What is opportunity cost? Explain with the help of an example, why assumption of constant opportunity cost is very unrealistic?
Question 2. (a) Explain law of demand with the help of a demand schedule and demand curve.
(b) Calculate point elasticity of demand for demand function Q=10-2p for decrease in price from Rs 3 to Rs 2
Question 3. "Cost function expresses the relationship between the cost and its determinants." Discuss this statement giving examples from any firm of your choice.
Question 4. "A characteristic of oligopolistic market is that, once the general price level is established it tends to remain fixed for an extended period of time." Discuss the economic rationale underlying this phenomenon.
Question 5. In any firm of your choice, try to find the effect of change in demand and change in supply on price and quantity of product.
Question 6. Write Short Notes on the following:
(a) Value Maximization
(b) Envelope Curve
(c) Peak Load Pricing
Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.
What is the difference between contractionary and expansionary monetary policy?
Answer the following questions as these general questions pertain to the specific issue selected.The questions that you will cover with respect to your choice of broad social issue in the paper are given.
Essay on Market imperfection associated with negative externalities
What will be the effect of this change in policy on both the real and the nominal interest rate in the long - run?
Consider the problem of the book assuming that the utility is Cobb-Douglas (U (C, l) = C α l β )
Describe unemployment and the unemployment rate. Might we be able to say "Job Stats: Too Good to be True?"
Describe the Soviet Rapid Development Model
Do the estimated coefficients have the required signs to yield a-shaped AVC curve? Discuss the significance using the p-values.
Problem on standard deviation
Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."
Macroeconomics questions, discuss the short-run and long-run effects, Keynesian model, Distinguish between ongoing demand pull and ongoing cost push inflation.
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