Applied Economics - Unit Wise Questions
2. Distinguish the concepts of micro-economics and macro-economics.
3. What is demand? Explain its determinants.
4. a) A consumer buys 80 units of a goods at a price of Rs.4 per unit. When the price falls, he buys 100 units. If the price elasticity of demand is -1, find out the new price of the goods.
b) Price elasticity of supply of a good is 5. A producer sells 500 units of this good at Rs.5 per unit. How much will sell at the price of Rs.6 per unit?
8. Explain the primary and secondary functions of money.
10. Based on the table given below, answer the questions:
| Quantity of Output | 0 | 1 | 2 | 3 | 4 | 5 |
| Total Variable Cost | 0 | 20 | 30 | 48 | 90 | 170 |
| Total Cost | 30 | 50 | 60 | 78 | 120 | 200 |
a) Plot the TFC,TVC and the TC curves.
b) Explain the reason for the shape of short-run total cost curves.
c) Calculate the average fixed cost (AFC), the average variable cost (AVC), the average total cost, and the marginal cost (MC).
5. 'Price effect is the combination of income and substitution effects.' Describe.
6. Explain the relationships between AR and MR.
7. How price and output are determined under perfect competition market in the long-run?
11. Consider the following data to calculate the following.
9. Explain the properties of the Indifference Curve.