Economics (MB 101)

It contains information about microeconomics,basic framework of economics and circular flow of economics.

Section A : Multiple Choice & Short Answer Questions There s not much to say on ’ Section A except that it s an , ’ opportunity to pick up some easy marks. Best way to ensure you answer the questions correctly is to follow the D s Rule “3 ’ ”: 1. DEFINITIONS: Have a clear understanding of the definitions See page for . 12 a worked example . 1 2. DATA: Determing what the data ( ’ ) you re presented with is telling you about the question as a whole? 3. DETAILS: Foc...

Economic Indicators The Primacy of GDP (30 min.) Knowledge Check 1 How accurately do GDP statistics portray the economy and why?  Inaccurately because the scope of GDP measurements can change. Knowledge Check 2 Consider the formula GDP = C + I + (X-M). A country is undergoing a boom in consumption of domestic and foreign luxury goods. In one year, the dollar growth in imports is greater than the dollar growth in domestic consumption. Assuming nothing else has changed, what happened to...