Question answers

Assignment 1: (Answer any one question) 1. Define Economics and explain the various key elements of the definition of Economics. 2. What is the economic "way of thinking" and what principles do we use in making economic decisions? Assignment 2: (Answer any two) 1. Explain in detail the Expenditure method of calculating GDP. 2. Define GDP and explain its various components. What is the difference between nominal and real GDP. 3. What is excluded from the measurement of GDP? Assignment 3: (answer any two) 1. Explain why the Production possibility curve is concave or bowed out. 2. Explain the income and substitution effects in the law of Demand. Give an example. 3. With the help of a graph, explain the difference between price floors and price ceilings. 4. Compare and contrast "public goods", "private goods", normal goods and inferior goods, substitutes and complementary goods