ECON201 assn1

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General Instructions – PLEASE READ THEM CAREFULLY

  • Students must mention the question number clearly in their answers.
  • Late submissions will NOT be accepted.
  • Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
  • All answers must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).

Assignment 1 Questions: Week 1, 2 & 3

Q1: Define price ceiling and price floor and give an example of each. Which leads to a shortage? Which leads to a surplus? Why?                                                                                                     [2.5 Marks]

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).                                                        [2.5 Marks]   

Q3: Pick any two principles of economics from Chapter 1 and explain each with an example.                                                                                                                                                                   [2.5 Marks]

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.                                                                                                          [2.5 Marks]                                                   

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