Economics 283 () What is economics and why do we study it? What questions does it deal with? )Briefly Discuss alternative economic systems. How are resources allocated under each 3) What is Agricultural Economics? What are the main economic sectors of agriculture? 4) What is an indifference curve? What is inferred by an outward shift of the curve? What S) Using indifference curve analysis, show how does a consumer maximize his/her utility? 6) What is the principle of Marginal Rate of Substitution (MRS)? Draw a set of indifference system? What is accomplished in each? do the slope and the curvature of an indifference curve imply? Explain the underlying principle of utility maximization curves for which MRS is constant between two products; MRS is zero. 7)How do we obtain the demand curve using indifference curve analysis. Explain. ) Explain the difference between change in quantity demanded and a change in demand ) Using indifference curve analysis show and explain the income effect and substitution effect due to price change of a product.(assume a price fall of product on the X-axis.) )Briefly explain Engel Curve for inferior, superior and normal goods. Where do the agricultural products belong? ) Discuss various demand elasticities and how and where do we use them. ) Discuss the factors that determine the value of price elasticity of demand. TE: One question will be about definitions of various concepts.
1.
Economics is the branch of study that deals with the scarce resources and tries to answer the questions related to demand, consumption and consumer preferences. It also studies the relationship among the different components of the economy, such as households, firms and government. Economics is studied due to the following reasons.
A. It explains the methods to achieve the economic efficiency in the economy
B. It tells the methods of efficient allocation of resource
C. It provides the answers of questions such as what to produce, how to produce and how much to produce and at what price
D. It creates market structure on the basis of goods and services produced by the firm
It deals with the following questions:
A. What should the firm produce and how it can be identified?
B. What should be the output and price combination for firms?
C. What are the basis of designing a market or market structure?
D. What should be the monetary policy for the economy?
E. What should be the fiscal policy of the economy?
F. Questions related to the different micro and macro economic indicators and creating a balance among these indicators.
Pl. repost other unanswered questions for their proper answers!
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