Course contents for Introduction to Economics

(AMT, FDT, KMT)

Short notes:

 Scarcity
 Opportunity Cost
 Law of demand
 Law of supply
 Efficiency
 Equity
 Inflation
 Elasticity
 Price elasticity of demand
 Economics

Broad questions:

Chapter-01

 Briefly explain the four principles of individual decision making.

 Briefly discuss the principles of economic interaction.
 Briefly illustrate (explain) the principles which describes how the economy works as a
whole.
 Briefly discuss the ten principles of economics
Chapter-02

 Draw and explain how dollar flows through markets among household and firms.
 What is production possibility frontier? Draw a production possibility frontier using the
following production possibility schedule.

Production Cars Truck

possibility
A 0 15
B 1 14
C 2 12
D 3 9
E 4 5
F 5 0

Chapter-05

 What is price elasticity of demand?

 Briefly discuss the determinants of price elasticity of demand.
 Using the mid-point method calculate the price elasticity of demand for the following
information
Point Price Quantity
A $4 120
B $6 80

 Draw the graph for- Unit elastic, Perfectly inelastic and Perfectly elastic demand curves
and provide brief explanation.