1.Smith says that we should eliminate all pollution in the world. Jones disagrees. Who is more likely to be an economist, Smith or Jones? Explain your answer.

2.A layperson says that a proposed government project simply costs too much and therefore shouldn't be undertaken. How might an economist's evaluation be different? Explain.

3.Illustrate scarcity, opportunity cost, and economic growth within a PPF framework of analysis.

4.Explain with the help of a graph how the demand curve will be affected in the following situations: (a) A rise in the price of a substitute good, and (b) An increase in income ( the good under consideration is an inferior good).

5.How might the price of wheat affect the supply of rice in Bangladesh? Explain with the help of a graph.

6.At equilibrium in a market, the maximum price buyers would be willing to pay for the good is equal to the minimum price sellers need to receive before they are willing to sell the good. Do you agree with this statement? Explain your answer.

7.Explain how the market moves to equilibrium in terms of shortages and surpluses.