Micro-economics Test

1. What are the central problems of an economy?
2. What do you mean by the production possibilities of an economy?
3. What is a Production Possibility Frontier (PPF)?
4. What is the subject matter of economics?
5. How does a centrally planned economy differ from a market economy?
6. What do you understand by positive economic analysis?
7. What do you understand by normative economic analysis?
8. What is the difference between microeconomics and macroeconomics?

Solutions