Eeconomics 1

Qquestion 1

Fully discuss how the production possibility frontier demonstrates the basic economic problem of scarcity. (25)

Question 2

2.1 using demand and supply analysis, explain the effect on the equilibrium price and quantity of a good or service if the number of buyers in the market for this good or service increases. (12)

2.2 Discuss the type of price control that a government would implement, if it wishes to impose a national minimum wage. Include in your answer the economic effects of such a price control. Motivate your answer with the aid of a diagram. (13)

Question 3

Examine the impact on total revenue In terms of an elastic demand curve and inelastic demand curve. Use diagrams to motivate your answer .(20)

Question 4

Discuss in detail the macroeconomic circular flow diagram. Substantiate your answer with the aid of a diagram.

Note this is a research based assignment and requires evidence of research.