Define fixed cost. Give an example. Explain with reason the behaviour of Average Fixed Cost as output is increased. 

Define marginal product. State the behaviour of marginal product when only one input is increased and other inputs are hold constant.

When price of a commodity falls from Rs 12 per unit to Rs 9 per unit, the producer supplies 75 percent less output. Calculate price elasticity of supply

14.

Why do central problems of an economy arise? Explain the central problem of 'for whom to produce'?

Explain three properties of indifference curves.

Examine the effect of (a) fall in the own price of good X and (b) rise in tax rate on good X, on the supply curve. Use diagrams.

Explain the implications of the following in a perfectly competitive market  
(a) Large number of sellers
(b) Homogeneous products.

Explain the implications of the following in an oligopoly market:
(a) Barriers to entry of new firms
(b) A few or a few big sellers

Define flows.

National income is the sum of factor incomes accruing to:(Choose the correct alternative):
(a) Nationals
(b) Economic territory
(c) Residents
(d) Both residents and non-residents