Homework 1

Explain why the basic economic problem means that choices will always have to be made by individuals, firms and the government.

(7 marks)

Homework 2

A recent survey revealed that a rise in prices of cigarettes has done little to reduce the demand for them.  Using the information in this sentence, explain:
(i) the difference between price elastic and price inelastic demand

(5 marks)

Homework 3

Explain what is meant by long run average costs.
Describe the reasons why a long run average cost curve falls and then rises.

(10 marks)

Homework 4

Explain why:

(i) short run average total cost curves are usually U-shaped;
(ii) long run average total cost curves are usually U-shaped.

(15 marks)

Homework 5

Describe how governments may intervene in the market for some goods and services.

(8 marks)

Homework 6

Explain, using examples, what is meant by “barriers to entry”.

(8 marks)

Homework 7

Explain the relationship between the MPC and the multiplier.
Describe what is meant by the multiplier.

(9 marks)

Homework 8

Explain how a high rate of inflation can create problems for an economy.

(7 marks)

Homework 9

Describe 3 government objectives, other than economic growth.

(6 marks)

Homework 10

Describe fiscal and monetary measures a government may use to achieve economic growth and explain how they would work.

(10 marks)

Homework 11

Explain the main economic benefits that could arise for the Scottish economy of the UK joining the Eurozone

(8 marks)

Homework 12

Describe the possible impact on the UK economy of economic recovery in other EU states

(5 marks)

Homework 13