Q1. Fully discuss how the production possibility frontier demonstrates the basic economic

problem of scarcity (25 Marks)

Q2.1 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 Marks)

Q2.2 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. (13Marks)

Q3 Examine the impact on total revenue in terms of an elastic demand curve and inelastic

demand curve. Use diagrams to motivate your answer.(20 marks)

Q4 Discuss in detail the macroeconomic circular flow diagram. Substantiate your answer

with the aid of a diagram (30 Marks)