Principles of Economics Assignments: April, 2014

ROLL NO.	Q. No.	Assignments Questions….. 10 Marks each. (Answer in about 600 words for each of the two questions). Submit by 15 April, 2014 (Tuesday).
11003	1	Write short notes on the following : (a) Consumer’s and producer’s surplus (b) Price elasticity of Supply
	2	What are the various determinants of demand of a product?
11004	1	Write short notes on the following : (a) Injections and leakages in an open economy with government. (b) Savings Function
	2	Write a note on Circular Flow of Income.
11011	1	Explain the process of credit creation in the commercial banking system.
	2	Explain the differences between GDP, GNI and GNP.
11014	1	Write short notes on the following : (a) Giffen good and the law of demand. (b) Income elasticity of demand
	2	How does the AR and MR curve differ with respect to perfect competition form that of a monopoly.
11016	1	Write a short note on supply curve of a firm under perfect competition? How is the supply curve in the industry generated under perfect competition? (Explain with diagrams)
	2	Write short notes on the following : (a) Multiplier Effect. (b) Nature of Money
11017	1	How do you derive the demand curve from the price consumption curve? Explain with the help of a diagram.
	2	What are the gains of international trade?
11020	1	What are the different components of national income? Write brief notes on the same.
	2	Explain why monopoly is allocatively inefficient.
11021	1	Write a short note on supply curve of a firm under perfect competition. How is the supply curve in the industry generated? (Explain with diagrams.)
	2	Explain the differences between economies of scale, constant returns to scale and diminishing returns to scale.
11022	1	Write short notes on the following : (a) Cross-price elasticity of demand;; (b) Law of diminishing marginal utility
	2	Write a note on Monetary Forces and Aggregate Demand.
11029	1	Explain the determination of equilibrium income through the saving-investment approach.
	2	Explain short-run equilibrium under perfect competition.
11030	1	Write short notes on the following : (a) Causes of Inflation; (b) Role of fiscal policy
	2	Write a note on credit creation.
11031	1	Write short notes on the following : (a) Multiplier; (b) Law of absolute advantage;
	2	Write a note on monetary policy.
11032	1	Explain short-run equilibrium of monopoly with the help of a diagram.
	2	Write short notes on the following : (a) Price consumption curve (b) Income consumption curve
11049	1	Write short notes on the following : (a) Motives for holding money; (b) Balance of payments,
	2	What do you understand by income and substitution effects? Explain with the help of diagrams.
11051	1	Explain the properties of an indifference curve. Show the consumer's equilibrium with the help of indifference curves.
	2	Write a note on Fiscal Policy.
11060	1	How does scarcity give rise to the central problems in an economy? How are these problems solved in a free market economy?
	2	Write a note on nominal and real GDP.
11061	1	Write short notes on the following : (a) Mid-point method of measuring elasticity of demand (b) Production Possibility Curve ;
	2	Explain Average Variable Cost (AVC), Average Total Cost (ATC) and Average Fixed Cost (AFC).
11063	1	What do you understand by exchange rates? How are these determined?
	2	Outline the main determinants of demand and supply elasticity.
11066	1	Enumerate the determinants of' growth. 'What are the limits to growth?
	2	Explain aggregate expenditure and equilibrium output.
11071	1	How is national income determined in an economy?
	2	What do you understand by terms of international trade?