that commodity and the price other commodities affect the demand Curve? 3. Explain the law of diminishing marginal utility. Illustrate your answer

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1 Group One : 1. What do you understand by the term Economics? The origin of economics lies in the endeless human wants and scarcity. Elaborate your answers in relation to Rwanda s economy. 2. What is the meaning of Demand? What are the determinants of Demand? With the aid of Diagram, show how does increase in income, rising price that commodity and the price other commodities affect the demand Curve? 3. Explain the law of diminishing marginal utility. Illustrate your answer with appropriate diagram. 4. What are the characteristics of perfect competition? With aid of illustration, distinguish between perfect competition and pure competition

2 Group two 1. With specific examples, Distinguish between Microeconomics from Macroeconomics. What are the merits and demerits of microeconomics and macroeconomic in an economy. 2. Draw a production possibility Frontier of Butter and Gun? Using the concept of opportunity cost, explain why it is a bowed-out shape. Show a point that is impossible for economy to achieve and show a point that is feasible but not suffiecient. 3. What are the isoquants curves? Explain their main properties. How are they different from indifference curves? 4. There are major reasons why people demand for Money. With examples, state and explain these reasons. Illustrate and Explain the supply of Money

3 Group three 1. What is the meaning of Supply? What are the determinants of Supply? Explain the law of supply through supply schedule and supply curve. Why does supply curve slope upward to the right? What factors cause a right ward shift of a supply curve? 2. Explain the equilibrium of consumer through indifference curve technique. Show how the consumer equilibrium affected when there is a rise in his/her income. 3. What is meant by production function? What is the use of production function in production analysis? 4. Explain the following concepts separately a) Price Elasticity of Demand b) Income Elasticity of demand c) Cross Elasticity of demand

4 Group Four 1. What is meant by Utility? Distiquish between the cardinal and ordinal measures of utility. 2. What do you understand by term National Income? With help of example, Differentiate between GDP and GNP. 3. Explain the behavior of cost curves in short run. Show the relation between marginal cost, average variable cost, average total cost. 4. State and explain the Characteristics of good Money and types of Money.

5 Group Five 1. Distinguish between the following and show their importance in production theory a) Short run and Long run b) Variable inputs and fixed inputs. 2. What is an indifference Curve? What are the main properties of indifference curves? 3. Illustrate the profit maximization under monopoly and show the different levels of elasticity where a monopoly would likely to choose in profit maximization. 4. What do you mean by Oligopoly? Explain the price determination under condition of oligopoly.

6 Group Six 1) Explain the relationship between the average cost and Marginal cost Curves? 2) What is the law of diminishing marginal returns? Why is this law associated with one variable input? 3) Explain why average total cost curve and Average variable cost come closer as output increases. 4) What are the Problems of Measuring National Income

7 Group Seven 1) What is meant by the market structure? What are extreme model characteristics of the Market structures 2) Illustrate and present three component approaches in measuring Gross National Product. 3) What do you understand by the term monopoly and monopoly power in the market structure? What are Origins of the monopoly power? 4) What do you understand by the Balance on current account and Balances on capital and financial accounts? With the help of examples Differentiate between Balance on current account and Balances on capital and financial accounts.

8 Group Eight 1) What do understand by Duopoly and what are the features of duopoly? 2) With the help of examples and illustration, present three approaches of measuring Gross National Product. 3) What is meant by equilibrium price and quantity? What factors cause a right ward shift of the equilibrium point? 4) Define and Distinguish between Marginal product and average product. Draw the marginal product and average product curves from a hypothetical data. Do you find any relationship between them?

9 Group Nine : 1) What do you mean by the term Money? State and explain with example the functions of money. 2) What do you think are the causes of balance of payment problem-deficits and surpluses in Developing countries? How can you correcting a Balance of Payments Deficit and Surplus in Developing countries 3) What do you understand by the Term inflation? Explain in details the types and causes of inflation. 4) Define and distinguish between Oligopoly and Duopoly. What are main features of Oligopoly and Duopoly?

10 Group Ten : 1. Explain the meaning of Balance of payments. What do you think are included in the Balance of payment? 2. What do you understand by term Devaluation? Why should a country devalue its currency? Explain the reasons why African countries have unfavorable terms of trade? 3. What do you understand by term perfect competition? With the help of Diagram; show the profit maximization under perfect competition! Use Total Cost-Total Revenue Method and Marginal Cost-Marginal Revenue Method, 4. What will be the shape of indifference if one of the two goods is a free commodity

11 Group Eleven 1. Using the supply - and - demand diagrams, show the effect of the following events on the market for personnel computers. a) The price of computers chips falls b) There is a rise in computer c) The price of computers softwares d) Universities require incoming freshers to have their own pesonal computers. 2. Define the price elasticity of demand and the income elasticity of demand. List and explain the four determinans of price elasticity demmand. 3. Explain why an economy s income must equal its expenditure. List the four components of GDP. Give an example of each 4. What do you understand by the balance of payment? Do countries normally attain balance of payment? why and why not? State the different ways of correcting balance of payment defits and surpluses.

12 Group Twelve : 1. With relevent examples, explain the agents of production in an economy like Rwanda. 2. Using the illustrations, explain the relationship between Total Cost, Fixed Cost, Variable Cost, Average Total Cost, Average Cost, Total Cost and Marginal Cost. 3. State and illustrate the economic model of circular flow of income. Show how this model can solve a number of economic questions. 4. State the meaning of cost in production. With relevant examples, what do you understand by the term explict and inplict costs. State the relationship between economic profit and accounting profits.

New syllabus of B.Com Part-1 effective from 2006

New syllabus of B.Com Part-1 effective from 2006 ECONOMIC ANALYSIS AND POLICY MICRO ECONOMICS 2 questions, 40 Marks CHAPTER 1 1NTRODUCTION 1 Basic concepts 2 Definition 3 Micro and macro approach to economic