Make sure to:
1. must mention the question number clearly in their answers.
2. A
Make sure to:
1. must mention the question number clearly in their answers.
2. Avoid plagiarism.
3. No pictures containing text will be accepted and will be considered plagiarism.
4. All answers must be typed using Times New Roman (size 12, double-spaced.
Q1: Define price ceiling and price floor and give an example of each. Which leads to a shortage? Which leads to a surplus? Why?
Q2: Export or Import, what is the option available for a nation if it has a comparative advantage in the production of agricultural produce over the other country? Explain. Why do a group of economists favor the policies that restrict imports? (Minimum 500 words).
Q3: Pick any two principles of economics from Chapter 1 and explain each with an example. (From the slides)
Q4: Take an example of a two-goods economy and explain the concept of opportunity cost with the help of the Production possibility curve (PPC). Also, draw a PPC and explain why any combination outside the PPC is not possible.
