Economics

Step 1: Calculate initial quantity:
Step 2: Calculate new quantity:
Step 3: Price elasticity formula:
Oops! Let’s carefully compute: . Actually, using midpoint method, the elasticity ≈ 3.

Step 1: Properties of indifference curves: Downward sloping, convex to origin, and do not intersect.
Step 2: Conclude: Option 2 is incorrect as ICs never intersect.

Step 1: Recall formula for difference between CI and SI.
Difference for n years at rate r:
Step 2: Apply values.

Step 1: Recall economic planning goals.
- Goals: Employment, Growth, Reduce Inequality, Poverty Alleviation
- Increasing population growth is not a goal

Step 1: Recall the definition of negotiable instruments.
- Negotiable instruments are transferable documents that guarantee payment of a specific amount to the bearer or the order of a specified person.
- Examples: Bill of exchange, Promissory notes, Cheques.
- Letter of credit is a banking instrument used in trade, but it is not transferable in the sense of negotiable instruments.

Step 1: Recall historical order.
- Mercantilist Doctrine (16th–18th century) → oldest trade theory
- Absolute Advantage → Adam Smith, 1776
- Comparative Advantage → David Ricardo, 1817
- Factor Proportions → Heckscher-Ohlin, 20th century

Step 1: Identify definitions.
- Balance of Payments (BOP) records all international transactions (goods, services, capital, transfers) over time

Step 1: Recall macroeconomic curves.
- Phillips Curve shows the inverse relationship between wage inflation and unemployment