2024 – A Define Economics B What do we mean by Scarcity and how does

A: Define Economics
B: What do we mean by “Scarcity” and how does that relate to the concept of “Opportunity Cost”?
C: Distinguish between :macroeconomics” and :microeconomics”
D: Distinguish between “Positive economics” and “normative economics”

2) A: Distinguish between “Capitalism” and “Socialism”
B: Distinguish between a “market economy” and a “command economy”
C: What is “welfare capitalism”?
D: What do we mean by “entrepreneur” and “economic capital”?

3) In each case explain (using appropriate graphs for support) what happens to prove and output in the market for wheat bread; assuming that wheat bread is a normal good, rye bread is a substitute in consumption, wheat is an input in making wheat bread and rye is an input in making rye bread.

A: There is an increase in income
B: There is an decrease in the price of rye
C: There is an increase in the price of wheat
D: There is an improvement in the production technology for bread.

4) Continuing with the previous problem, explain (using appropriate graphs for support) what happens to price and output when:
A: There is an increase in income and an increase in the price of wheat
B: There is an increase in income and an improvement in the production technology for bread.
C: There is a decrease in the price of rye and an increase in the price of wheat
D: There is a decrease in the price of rye and an improvement in the production technology for bread.

5) In each case (using appropriate graphs for support) describe the distortions that occur in a competitive market when the government imposes:
a price ceiling
a price floor