Economics Essay

288 WordsNov 21, 20142 Pages
Assignment Questions: Economics- FIB 1044 Marks Assigned: 10 Marks Last date to submit the assignment: 24th Nov, 2014. 1. Define economics and the features of the economic perspective. 2. Discuss about the production possibilities analysis, increasing opportunity costs, and economic growth. 3. Distinguish microeconomics from macroeconomics and positive economics from normative economics. 4. Explain the concept of Individual’s economizing problem, with a suitable table and graph. 5. State the Law of Demand and the Law of Supply, and explain why price and quantity demanded are inversely related, and why price and quantity supplied are directly related. 6. List the major determinants of demand, and explain how a change in each will affect the demand curve. 7. List the major determinants of supply, and explain how a change in each will affect the supply curve. 8. Explain the concept of equilibrium price and quantity. Illustrate graphically equilibrium price and quantity. 9. Define price ceilings and price floors, and provide examples. 10. Define productive and allocative efficiency, and explain how competitive markets achieve them. 11. Define marginal utility and state the law of diminishing marginal utility. Explain and graph the relationship between marginal utility and total utility. 12. State the utility maximizing rule. Use the utility maximizing rule to determine a consumer’s spending (and demand curve) when given income, utility, and price data. 13. Describe how prospect theory explains consumer decision making with negative possibilities. Relate the idea of status quo to prospect theory and give examples of the role of a change in status quo to consumers’ choices. 14. Use the theory of consumer behavior to define the market shift from portable CD players to iPods since

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