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Question 1 Identify the basic postulates of economics
Question 2 Discuss the role of price mechanism
Question 3 Explain the shape and application of Engel curve
Question 4 Discuss the various features of optimal expansion path
Question 5 Once a price-quantity combination is determined, an oligopoly firm does not find it profitable to change its price. What is the logic behind this?
Question 6 Graphically explain Keynesian theory of interest
In markets, the invisible hand allocates resources efficiently a. in all cases b. when there are positive externalities, but not when there are negative externalities c. when there
calculate point elasticity of demand function Q=10-2p for decrease in price from Rs3 to Rs2
description of slutskian approach
What is development economics? Traditional economics studies the allowance of scarce resources among alternative uses. Development economics seems at the economic, politica
Consider a consumer with the following Cobb-Douglass utility function: U (x, y) = x α y 1-α a) Find the Marshallian Demand for both goods. b) Find the Price Elasticit
Axioms: Revealed preference theory is based on the axioms listed below. • Consumer will spend all her income on goods. The consumer equilibrium always remains on the budg
What is elasticity of supply
The idea for the national accounts came during the 1930s depression in the U.S., when decision-makers wanted to get a better sense of by how much economic production had fallen. Si
Discriminatory Fee Structure This method discriminates between courses and the economic condition of the family to which the student belongs. The cost of providing the educati
Question 1 (9 marks) During the 1990s, technological advance reduced the cost of computer chips. Explain, with the use of supply and demand diagrams, how the following mark
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