Economics 2023

Explain Production Possibility Frontier (PPF) and clarify opportunity cost; as well as its role in production decision making.

Analyze points on the PPF inside as well as outside the PPF and their economic implications. Analyze whether PPF may have different shapes/slopes?

Differentiate between Cross and Arc elasticity of demand.

Are there different economic implications of these elasticities? Explain with the help of examples.

Explain Cardinal and Ordinal utility. How utility can be measured from these utilities and clarify which measures are better to make economic decision?

Derive demand curve based upon your explanation of (a) above. Do you think utility derived changes along demand curve? How consumer surplus is relevant in this case?

Analyze consumer consumption curve (path) based upon budget line. What is the role of marginal rate of substitution in reaching equilibrium points?

Explain Engel Curve (EC) and state whether it can have different slopes. Also identify commodities consumers want to purchase along negatively sloped EC.

Explain factors of production employment and establish expansion path. State role of economies of scale in this respect.

Define production function and also draw Production Possibility Curve employing two factors of production and their substitution. Discuss economic implications of such substitution.

Explain kinked demand curve and output decision under oligopoly.

Explain Cournet equilibrium and how is it relevant to Nash equilibrium? You must explain and relate to economic decision making.