Question

1. Define the following:
   1. Law of demand
   2. Normal Good
   3. Inferior Good
   4. Absolute Price
   5. Relative Price
   6. Utility
   7. Production Function
   8. Law of Diminishing Marginal Utility
   9. Cross Elasticity of Demand
   10. Income Elasticity of Demand
   11. Bond
   12. Stock
   13. Marginal Revenue Product
   14. Marginal Physical Product
   15. Sunken cost
   16. Short Run
   17. Long Run
   18. Implicit Cost
   19. Explicit Cost
   20. Increasing Returns to Scale
   21. Decreasing Returns to Scale
   22. Constant Returns to Scale
   23. Giffin Good

Answer 1

Answer) Short-run:- The short-run is a duration of time in which the quantity of at least one input is fixed and the quantities of the other inputs can be altered.

Long run:- The long run is a period of time in which the quantities of all inputs can be modified.

Explicit cost:- Explicit costs are out of pocket expenses for a firm, for instance, payments for wages and salaries, rent, or materials.

Implicit cost:- Implicit expenses are the opportunity cost of resources already owned by the firm and used in business—for instance, developing a factory onto land already owned.

Inferior Good:- An inferior good is an economic term that describes a good whose demand declines when people's incomes increase.

A normal good:- In economics, a normal good is any good for which demand increases when income increases.