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Explain the role of Prisoners Dilemma in understanding an Oligopoly market. What does the Nashs equilibrium
indicate?
List and explain the four components of GDP. Why are shares and stocks not included in GDP calculations?
What are the features of firms in a competitive market? Under what conditions will the firms (1) Shut down
temporarily and (2) Exit the market
What is money? What are the functions of money? How does a Central bank control money supply in the economy ?
Explain the short run trade-off between inflation and unemployment using the Phillips curve. When does the Phillips
curve become vertical?
Explain Nominal and Real Exchange Rates and the concept of Purchasing Power parity with suitable example.
Draw the demand, marginal revenue and marginal cost carves for a
monopolist. Show the profit maximizing level of output & price.
Explain the relative version of purchasing power parity theory and describe
the economic logic behind this theorem.
What is the Prisoners dilemma and what does it have to do with Oligopoly
Explain what is competitive firm and under what conditions will a firm exit a
market?
What are the costs of inflation? Which of these costs do you think are most
important for the Capitalistic Economy
Describe the three problems that make the consumers price index and
imperfect measure of the cost of living.
What is the liquidity preference? How does it help explain the downward
slope of the aggregate demand curve.
Draw the short run trade - off between inflation and unemployment. Explain
how the short - run and long run trade offs are related.
Explain the three reasons for the aggregate demand curve is downward
sloping.
The study of economics has many facets and the field is unified by several central ideas
regarding decision making of peoples, their interaction and the working of economy as
a whole- Explain.
The price elasticity of demand determines whether the demand curve is steep or flat -
How? You also need to explain all five cases of price elasticity
How a firm operating in competitive market can maximize its profit in short run?
Explain.
What is monopoly? Which are the reasons for arising of monopoly situation?
Why is a monopolists marginal revenue less than the price of good? Can marginal
revenue ever be negative? Explain.
Describe the three problems that make the consumer price index an imperfect measure
of cost of living.
Show a consumers budget constraints and indifference curve for wine and cheese.
Show the optimum consumption choice.
Why do economists use real GDP rather than nominal GDP to gauge economic wellbeing?
Use the theory of liquidity preference to explain how a decrease in the money supply
affects the aggregate demand curve.
Why dont banks hold 100 percent reserves? How is the amount of reserves banks hold
related to the amount of money the banking system creates?
Draw the long run trade off between inflation and unemployment. Explain how the
short run and long run trade offs are related.
Explain price elasticity of demand and the income elasticity of demand. Also
explain the determinants of the price elasticity of demand.
What is income effect and substitution effect caused by a change in the price of a
good?
How interest rate is determined? Explain the effect of following policy changes on
market interest rate.
(i)saving incentives (ii)investment incentives
Explain the concept of multiple creation of deposits under fractional reserve system.
According to the fisher effect, how does an increase in the inflation rate affect the
real interest rate and the nominal interest rate?
Use the theory of liquidity preference to explain how a decrease in the money
supply affects the aggregate-demand curve
Given the unpopularity of inflation, why doesnt the government always support
efforts to reduce inflation? Many economists believe that countries can reduce the
cost of disinflation by letting their central banks make decision about monetary
policy without interference from politicians. Why might this be so?
The cost of producing DVD players has fallen over the past several
years. Lets consider some implications of this fact.
i. Draw a supply-and-demand diagram to show the effect of
falling production costs on the price and quantity of DVD
players sold.
ii. In your diagram, show what happens to consumer surplus
and producer surplus.
iii. Suppose the supply of DVD players is very elastic. Who
benefits most from falling production costs?
Several studies have found that the overall demand for automobiles
has an elasticity of about 1.3
i. How do you interpret this coefficient?
ii. After knowing about these results, a Ford dealer in
Ahmedabad cut his price by 10 percent and sold 22
percent more cars. What is the elasticity of demand in
this case? Does this mean the estimate of 1.3 is
incorrect? Explain.
Explain the circular flow of income model. Identify the parts of the
model that correspond to the flow of goods and services and flow
of money for each of the following activities.
i. Leena buys onion for Rs. 10.
ii. Mr. Sameer is paid Rs. 2000 as an honorarium for
delivering a guest lecture at an MBA institute.
iii. Prerna pays Rs.100 at Fun Republic to watch a movie.
Define total cost, average total cost and, and marginal cost. How
are they related?
Explain the concept of price discrimination. Why a seller chooses to follow this business strategy?
Give two examples of price discrimination.
Draw a consumers indifference curves for Pepsi and Pizza. Describe and explain four properties
of this indifference curve.
Explain with diagram price determination under perfect competition, if a competitive firm is in
short run equilibrium.
What is the Prisoners Dilemma and what does it have to do with Oligopoly.
What is the role of the financial system? Name and describe two markets that are part of the
financial system in the US economy.
Write your comments on Should fiscal policymakers reduce the govt. debt.
Define consumers surplus and producer surplus. Write a note on its utility for business decisions.
The study of economics has many facets and the field is unified by
several central ideas regarding decision making of peoples, their
interaction and the working of economy as a whole- Explain.
What are the variables that can shift the demand curve? Discuss.
Ink Pens and pencils are substitutes. When the price of an ink pen falls,
what happens to the supply, demand, quantity supplied, quantity
demanded, and price in the market for pencils.
Explain the shift in the demand curve. List and explain the most important
variables that can shift the demand curve.
Explain, what competitive firm is and under what conditions will a firm
shutdown temporarily?
Draw the Circular Flow diagram and Explain why an economys income must
equal to its expenditure
What is Natural about the natural rate of unemployment? Why might the
natural rate of unemployment differ across countries?
Define & explain the income elasticity of demand and the cross price elasticity
of demand with suitable example.
What is CPI? List the steps involved in calculation of CPI. Briefly explain the
three problems in measuring the cost of living.
How and why does a firms average-total-cost curve differ in the short run and
in the long run? Explain economies of scale and diseconomies of scale.
Define Duopoly and explain collusion and cartel. How and size of an
oligopoly affects market outcome
How the Phillips curve is related to the model of aggregate demand and
aggregate supply
Draw the Marginal Cost and Average Total Cost Curves for a typical firm.
Explain why the curves have the shapes that they do and why they cross where
they do.
Price stability and creating employment opportunities are two important goals of any
countrys macroeconomic policy. Is there any trade off in short run and long run? Explain.
What are the components of GDP? Explain each with the help of an example.
Explain the concept of inflation. Describe the different types of costs associated with inflation. In your opinion, what
is more harmful, inflation or unemployment? Justify your answer.
Explain how Consumer Price Index is calculated. Describe the difference between the GDP deflator and CPI.
Explain the role that banks play in the monetary system through the money multiplier. Explain the Reserve Banks
tools of monetary control.
Suppose the Federal Government expands the money supply, but because the public expects this action, it
simultaneously raises its expectation of the price level. What will happen to output and the price level in the short
run? Compare this result to the outcome if the Federal Government expanded the money supply but the public didnt
change its expectation of the price level.
What is happening to the India real exchange rate in each of the following situations? Explain.
a) The India nominal exchange rate is unchanged, but prices rise faster in India than abroad.
b) The India nominal exchange rate is unchanged, but prices rise faster abroad than in India.
c) India nominal exchange rate declines, and prices are unchanged in India and abroad.
d) India nominal exchange rate declines, and prices rise faster abroad than in India.
Draw the circular flow diagram and explain why an economys income
must equal to its expenditure.
Explain with reasons the concepts of movement along the demand curve and
movement of the demand curve. List and Explain the factors causing a shift in
demand curve.
Describe the concept of Equilibrium Firm and explain the short run price and
output determination of a firm under monopolistic competition.
Define Price Elasticity of Demand and explain the factors affecting price
elasticity of demand with its managerial implications in determining the price of a
product.
Explain the economic model of Circular Flow of Income and Expenditure and
explain how disequilibrium between income and expenditure affects the general
price level of the economy.
Explain the nature of demand curve diagrammatically in perfect competition,
Monopolistic competition, monopoly and oligopoly. How this feature of market
helps in pricing decisions of a firm.
Define Cost of Living Index. Explain the steps in the calculation of Cost of
Living Index. State the problems involved in its calculation.
What are the determinants of Aggregate Demand Function and Aggregate Supply
Function? Explain the effects of these determinants in ADF and ASF.
What is the Prisoners Dilemma? Explain how it helps in explaining the
oligopolistic behavior.
List and explain the steps involved in calculation of the Consumer Price Index
Among monopoly, oligopoly, monopolistic competition, and perfect competition, how would you classify the
markets for each of the following? Explain with reasons.
1) Indigo airlines in India
2) Coca-cola in India
3) Packaged Tea market of India
4) Indian Railways
5) Vegetable market
What is Gross Domestic Product? What does it indicate? How does it differ from Gross National Product?
What is Cash Reserve Ratio? Explain multiple credit creation by Rs.10,000 deposited ( primary deposit) in a
commercial bank with 10% CRR.
Define economies of scale and explain why they might arise. Define diseconomies of scale and explain why they
might arise.
What is Purchasing Price Parity? Explain its implication with a suitable example.
What is multiplier effect? Explain how changes in the Government purchases cause a Multiplier effect? Discuss by
giving any examples of your choice.
List and explain the three theories for why the short run aggregate supply curve is upward sloping.
Explain the available supply shock. Use the model of aggregate demand
and aggregate supply to explain the effects of such a shock of economic
system. Draw appropriate diagram.
What is the Theory of liquidity preference? How does it help explain the
downward slop of the aggregate demand curve?
Define Nominal Exchange Rate & Real Exchange Rate and explain how
they are related.