Welcome to PAS CLASS IB
1: Explain tow factors that might give rise to economics of scale for a firm. 2: Explain why some firms might choose the foal of profit maximization while others might choose to adopt satisficing behaviour. 3: Explain why firms may not always pursue the goal of profit maximization. Chapter 7:Read More
1: To what extent is advertising the most effective way of increasing the consumption of merit goods? 2: Explain how the overuse of common access resources can lead to negative externalities. 3: Discuss the view that the best way to reduce the threat to sustainability, arising from the burning ofRead More
1: A government decides to impose an indirect tax on unhealthy drinks. Discuss the consequences for the stakeholders in these markets. 2: Explain two reasons why a government might want to subsidize a food or service. 3: Discuss the view that governments should tax the consumption of gasoline (petroleum). 4:Read More
1: Explain how the incidence of an indirect tax depends on the price elasticity of demand and the price elasticity of supply. 2: Using diagrams, explain how the incidence of an indirect tax may be affected by the price elasticity of demand. 3: Explain the factors which might influence ofRead More
Chapter 2: Competitive Markets: Demand and Supply 1: Explain how the price mechanism reallocates resources when there is an increase in demand for a good or service. 2: With reference to the concept of excess demand, explain how a decrease in supply of a good would lead to a newRead More
