Q1. “Economics is the science of choices if there are scarce resources.” examine

Q1. “Economics is the science of choices if there are scarce resources.” examine the statement critically with the help of suitable examples.(7.5Marks)
Q2. Explain the concept of the production possibilities curve (PPC).How does PPC explain the concept of scarcity and opportunity cost? Provide a diagram showing the inefficient or underemployed resources in a hypothetical economy. (7.5Marks)
Q3. “Rationale people respond to the incentives”. Consider a scenario and critically examine the statement.What is the real-nominal principle? Take an example and explain. (7.5Marks)
Q4. Explain the law of demand and take a product of your choice to prepare a market demand schedule and market demand curve with some hypothetical numbers. Also, explain the four non-price determinants of demand. (7.5 Marks)