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Define price ceiling and price floor and give an example of each. Which leads to a shortage? Which leads to a surplus? Why

Define price ceiling and price floor and give an example of each. Which leads to a shortage? Which leads to a surplus? Why

Q1: Define price ceiling and price floor and give an example of each. Which leads to a shortage? Which leads to a surplus? Why?[2.5 Marks]

Q2: Export or Import, what is the option available for a nation if it has a comparative advantage in the production of agricultural produce over the other country? Explain. Why do a group of economists favor the policies that restrict imports?(Minimum 500 words).[2.5 Marks]

Q3: Pick any two principles of economics from Chapter 1 and explain each with an example.[2.5 Marks]

Q4: Take an example of a two-goods economy and explain the concept of opportunity cost with the help of the Production possibility curve (PPC). Also, draw a PPC and explain why any combination outside the PPC is not possible.[2.5 Marks]

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