8.Holidays Homework

1. Explain how scarcity and choice go together?
2. Is economics a positive science or a normative science? Support your answer with examples.
3. What is meant by economic problem? How does an economic problem arise? Is it true that if the resources were not limited there would have been no economic problem?
4. What is the meaning of economising of resources? Why is there a need for economising resources?
5. Explain the problem ‘what to produce’ with the help of an example. Does it arise in every economy? Explain.
6. Explain the problem of ‘how to produce’. Why does this problem arise?
7. Explain the problem ‘how to produce’ with the help of an example.
8. Why does the PPC look concave to the origin?
9. Write a note on the problem ‘for whom to produce’.
10. State in brief the problem of fuller utilization of resources.
11. Explain the relationship between marginal opportunity cost and slope of ppc?
12. State the law of demand and explain its assumption.
13. Why does demand curve of a normal good slope downward from left to right
14. Explain the meaning of normal good and inferior good.
15. Distinguish between extension of demand and increase in demand with the help of a diagram
16. Explain with the help of diagrams the effect of the following changes on the demand of a commodity
An unfavourable change in taste of the buyer for the commodity.
A fall in the income of its buyer, if the commodity is inferior.
17. Explain with the help of diagrams, the effect of the following changes on the demand of a commodity.
A rise in the price of complementary goods.
A rise in the price of substitute goods.
18. Explain with the help of diagrams, the effect of the following changes on the demand of a commodity .
A fall in the price of complementary goods.
A rise in the income of its buyer.
19. Explain with the help of diagrams, the effect of the following changes on the demand of a commodity.
Fall in the price of substitute good.
Fall in income of its buyers.
20. Mention any three factors that affect the price elasticity of demand of a commodity.
21. If a product price increases, a family’s spending on the product has to increase. Defend or refute.
22. When price of a commodity falls by 80%, the quantity demanded increases by 100%. Find out price elasticity of demand.
23. Price of a commodity rises from Rs 4 per unit to Rs 5 per unit and quantity demanded falls from 20 units to 10 units. Using (i) Proportionate Method and (ii) Total Expenditure Method, find out elasticity of demand.
24. When the price is Rs5 per unit, a consumer buys 40 units of a commodity and his price elasticity of demand is (-) 1.5. How much will he buys if the price is reduced to Rs 4 per unit?
25. When price of a good rises from Rs 10 per unit to Rs 20 per unit, its demand falls from 100 units to 50 units. Find out price elasticity of demand by the percentage method.
26. Originally, a product was selling for Rs10 and the quantity demanded was 1000 units. The product price changes to Rs14 and as a result, the quantity demanded changes to 500 units. Calculate the price elasticity.
27. The price elasticity is 0.5. The % change in quantity is 4. What is the % change in price?
28. Explain the law of variable proportions with the help of total product and marginal product curves
29. Explain the relationship between average product and marginal product.

30. Explain average cost and marginal cost with the help of a schedule and diagram.
31. Why is short-run average cost curve U-shaped?
32. Draw one diagram showing average total cost curve,average variable cost curve and marginal cost curve.