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INTRODUCTIONTOECONOMICS

1. Why is the study of " general price level" a subject matter of Macro economics?
2. State the fundamental problem that has led to emergence of Economics as a separate field of study.
3. Identify the problem of choice associated with distribution of National income?
4. Mr. X owns a firm that produces in the silk yarn. He is one of the many producers in the silk industry who are
suffering major losses due to fall in demand of this product. Will the problem be studied under Micro economics or
Macro economics. Why?
5. How does problem of choice arise?
6. For whom are the Multinational corporations producing in India and why?
7. Explain the problem of resource allocation with the help of PPF?
8. Marginal opportunity cost tends to increase as we move along the PPF. Why?
9.Production possibility curve is also known as the opportunity cost curve.Why?
10. Economic slow down in some parts of the world has adversely affected the demand for Indian Exports. What
will be its effect on Production possibility curve of India?
11. Massive unemployment will shift the PPF towards left. Do you agree? Why or why not?
VALUE BASED QUESTIONS
12. Unemployment is reduced due to measures taken by the government. State its economic value in the context of
Production possibility frontier.
13. A Country's resources are fully and efficiently utilised. The problem of scarcity still exists. What advice will be
given to raise the efficiency level of human resources to fight scarcity.
14. Production in the economy is below its potential due to unemployment. Government starts employment
generation schemes. Explain its effect using Production possibility curve.

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