List of top Economics Questions

Define foreign exchange rate. Differentiate between fixed and flexible exchange rates.
Explain the circular flow of income in a two-sector economy.
Define investment multiplier. What is the relation between investment multiplier and marginal propensity to consume?
Explain with diagram the effect of time element on equilibrium price.
How is technological progress a determinant of supply of a good by a firm? Explain.
What is the difference between inflationary gap and deflationary gap?
Define marginal rate of substitution.
Why does the budget line slope downward?
What is meant by complementary goods?
What is the reason for the backward bending labour supply curve?
Explain any two objectives of government budget.
What is ordinal utility?
Give the formula for measuring price elasticity of demand according to percentage method.
Explain the two main functions of central bank.
Define normative economics with a suitable example.
What is market equilibrium?
What are the shapes of AR and MR curves, when each unit is sold at the same price?
What is deficit budget?
Which items are included in balance of trade?
What is meant by determination of price ceiling?
Show the AR and MR curves in monopolistic competition through a diagram.
Out of the three concepts of revenue, which is also known as price?
Define macroeconomics.
State two important reasons by which excess demand is generated.
What is marginal propensity to consume?