IGNOU EEC-11 SOLVED ASSIGNMENT Fundamental of Economics

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EEC-11 Fundamental of Economics

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Asst.Code: EEC-11/AST-1(TMA)/2019-20

Long Answer Questions (Answer in about 500 words each) 15x 2=30

1. (a) What is the distinction between an increase in demand and expansion of demand?
Explain the various methods to measure the elasticity of demand. (10)
(b) Given the demand function (5)
qd = 650 – 5P – P
2 where P = 10,
Find out the price elasticity of demand.

2. (a) What is National Income? How the equilibrium level of income is determined? What
causes changes in the equilibrium level of income? (10)
(b) Given the following equations (5)
S = -70 + 0.25Yd
Yd = Y – T
I = I0 = 40
G = G0 = 30
T = T0 = 20
Find out the equilibrium level of income.

8. Distinguish between any two of the followings:

i. General equilibrium and partial equilibrium
ii. Stock and flow variable
iii. Positive economics and normative economics
iv. Economic growth and economic development

9. Explain any three of the followings:

i. Economic agents
ii. Multiplier
iii. Hyperinflation
iv. Bond Market
v. Marginal revenue
vi. Transfer earnings



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EEC-11 Fundamental of Economics


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