1.Discuss the effect of prices on IS-LM

2.Graphically differentiate between the technical substitution and income substation of inferior goods

3. How do macroeconomics model addresses the effects of unemployment

4.Discuss different degrees of price discrimination

5. Critically assess the methods used to generate empirical estimates of both short- and long-run cost functions. Do the empirical difficulties encountered rob the resulting estimates of any general operational utility?

6. 'About half of all advertising expenditure is wasted. The problem lies in knowing which half.' Discuss this statement and assess the usefulness of managerial models of advertising allocation decisions.

7. Analyses the effects of an increase in interest rates on the investment activity of a profit maximizing firm. Does it matter if inflation increases in proportion to the increase in interest rates?

8. The market allocates resources to the firms that best meet the needs of consumers.' Discuss.

9. 'The force of competition, the desires of managers and the needs of shareholders combine to ensure that firms maximize profit.' Discuss.

10. Explain the determination of the optimal price and output combination in a situation of monopolistic competition. Use the resulting equilibrium to illustrate the statement that 'production inefficiency is a necessary price to pay for product variety'. Comment on this statement.