- Question 1
Answer briefly each of the questions (i) to (xv) : [15 × 2] = [30 Marks] (i) Mention two examples of macro-economic analysis. (ii) How does an increase in income, affect the quantity demanded of an inferior commodity ? (iii) When does marginal utility become negative ? (iv) Draw demand curves showing : Ed = 0; Ed = ∞. (v) State two significant differences between extension in supply and increase in supply. (vi) Define average product. How can you get average product from total product ? (vii) Differentiate between money cost and real cost. (viii) When can the AR = MR = Price ? Give reasons for your answer. (ix) Define the market which has product differentiation as a distinguishing characteristic. (x) What do you mean by collective bargaining ? (xi) Mention two non-tax sources of revenue of central government. (xii) What do you mean by transfer payment ? Give one example. (xiii) Discuss any one importance of a budget. (xiv) Why do countries engage in international trade ? Give two reasons. (xv) Mention two adverse effects of an internal public debt.