Category: 1.3 Economics

Q. b) Discuss the meaning of inflation and the measures implemented by the government to control inflation. (12 marks, 2011 Q5b) A. In economics, inflation is a sustained increase in the general price level of Read More …

Q.What is the meaning of money? A.Money is used to equate to ‘wealth’, like Bill Gates has so much money that he can buy almost everything. However, in economic terms, Read More …

Q.a) Explain the meaning of “economics of scale” and distinguish between internal and external economies. (10 marks) (20 marks, 2011 Q4a) A.The differences between internal and external economies: ​Internal economies Read More …

Q.What are the common curves that are plotted in the study of costs? What are the two axis? In your own language, explain why in real life, marginal cost may Read More …

Q.What is ‘kinked’ demand in a oligopoly? A.Oligopoly is characterized by a market structure with a few large sellers, where any price movement would have effects on the preference of Read More …

Q.Define market structure of a monopoly and illustrate the equilibrium position in a short-run and in the long-run. A.Monopoly is defined as *being sole seller of a product without any Read More …

Q.Explain the concept of Production Possibility Curve and support your answer with examples and diagrams. A.Resource of diagram are from:http://www.expertsmind.com/microeconomics-assignment-help/production-possibility-curve-PPC.aspx Production possibilities curve or frontier, as the name suggests is Read More …

Q.What do you understand by an “indifferent curve”. Illustrate your point with a diagram.A.An indifference curve is a graph showing different bundles of goods between which a consumer is indifferent. That is, at each point on the curve, Read More …

Q.What is “Opportunity Cost” and explain your understanding of this term in economics. A.Opportunity cost is cost of forgoing a possible profit because the same resource is used to earn Read More …

Q.What are the basic economic problems of built environment? A.The three basic economic problems are: What to produce? How to produce (how much)? To whom it is produced? The above Read More …

Q. What is ‘Perfect Competition’? A. Perfect competition (sometimes called pure competition) describes markets such that no participants are large enough to have the market power to set the price of a homogeneous product. Read More …