Assignment

1) How would the supply and demand of basic item would be affected during the current
situation? Identify the factor that is going to affect the supply and demand.
2) Apply basic economic principles to today's healthcare market keeping in view of the current
situation.
3) Opportunity cost of increasing health sector budget
4) Opportunity cost of lock downs in different sectors
5) Basic economic questions: What…How…For Whom?
6) Discuss and critically evaluate three (3) determinants of price elasticity of demand with
reference to the manufacturing and service industry.
7) Suppose you lend $1000 to a friend and he pays you back after one year later. What is the
actual cost of lending this money?

8) If a shopkeeper opens his shop for 8 hours a day his total revenues are $100 and he pays $ 30
in expenses. If he wants to open the shop for 2 more hours his expected revenue is $ 140 and
expected expenses are $ 50. Is the decision to extend the shop timings by 2 more hours
feasible? Why or Why not?

9) Suppose you have been offered a choice of two part-time jobs: 15 hours a week stacking
shelves at the medical store for Rs.150 per hour with one cup of tea per day; or 20 hours a
week working in your own university as teaching assistant for Rs.180 per hour plus free
medical insurance. If you can take only one of the jobs, calculate:

(i) The opportunity cost of taking the University job.

(ii) The opportunity cost of taking the medical store job.

Requirements