PSEB SS Economics study plan

Define utility, total utility and marginal utility, and state the law of diminishing marginal utility with a numeric example

Derive and sketch indifference curves, and explain the properties of slope and convexity

Distinguish the substitution effect from the income effect for normal and inferior goods

Compute price elasticity of demand using percentage and total-outlay methods, and classify goods as elastic or inelastic from given data

Explain the law of variable proportions and identify the three stages of production from a total product schedule

Compute total, average and marginal product from a given input table and mark where marginal product becomes negative

State the relationship between marginal cost and average cost curves and explain why average cost falls then rises

Distinguish fixed costs from variable costs and compute total cost from a cost schedule

Derive the supply curve from marginal cost and state the conditions under which a firm shuts down in the short run

Explain the difference between a movement along the supply curve and a shift of the supply curve

Compute producer surplus and explain how it relates to revenue and variable cost

Distinguish economies of scale from diseconomies of scale and give one example of each

Compare perfect competition, monopoly, monopolistic competition and oligopoly on number of sellers, product nature, entry barriers and price control

Explain how a perfectly competitive firm reaches equilibrium using marginal revenue equals marginal cost

Show how a monopolist sets price and output and why marginal revenue is below price

Explain price discrimination and the conditions required for it to work

Describe how equilibrium price and quantity change when demand or supply shifts