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problem 1: Describe the likely behavior of Total Product and Marginal Product when for rising production only one input is raised while all the other inputs are kept constant.

problem 2: There is a simultaneous reduction in demand and supply of a commodity. When will it outcome in:

a) No change in equilibrium price.
b) A fall in equilibrium price.

By using diagrams.

problem 3:

a) What do you mean by term budget line? What does the point on it point out in terms of prices?

b) A consumer consumes only two goods X and Y. Her money income is Rs 24 and the prices of Goods X and Y are Rs 4 and Rs 2 correspondingly. Answer the given problems:

• Can the consumer afford a bundle 4X and 5Y? Describe.
• What will be the MRSXY when the consumer is in equilibrium? Illustrate.

problem 4: Describe the following:

a) Why is the indifference curve convex to the origin?
b) Why does a higher indifference curve symbolize a higher level of satisfaction?

problem 5: What do you meant by the term foreign exchange rate?

problem 6: What do you mean by the term Statutory Liquidity Ratio? Illustrate in detail.

problem 7: How is primary deficit computed?

problem 8: What do you mean by the term balance of trade?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M97747

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