Answer all the problems described below:

Section A: Long Answer problems. (Answer in around 500 words each)

problem 1: Give a short outline of National Income associated concepts. Describe three methods for measurement of National income.

problem 2: What are the benefits of International trade? Describe Heckscher-Ohlin’s (version) approach of international trade.

Section B: Medium Answer problems. (Answer in around 250 words each)

problem 3: Briefly describe the cardinal utility approach to consumer behavior. Describe how diminishing marginal utility is inter-linked to Marshallian law of demand?

problem 4: Describe with diagram the behavior of the short-run cost and long run cost of a firm.  Give illustration in support of your answer.

problem 5: Compile a chart for different forms of market structure. prepare their suppositions and equilibrium conditions in short (diagrams).

problem 6: Critically examine the different theories of demand for money.

Section C: Short Answer problems. (Answer in around 100 words each)

problem 7: Define the given terms:

a) Phillips Curve
b) Externality
c) Income elasticity of demand

problem 8: Distinguish between the given:

a) Homogenous and Non-homogenous production function.
b) Balance of payments and Balance of trade.
c) Goods market and money market.
d) Real and Nominal rate of interest.
e) Stock and flow variables.