1. Define and explain the “principal-agent problem”.
2. Differentiate “demand” from “quantity demanded”. What factors influence “demand”?
3. What is the relationship of “income elasticity for restaurant food” on the “eating out”
Behavior of individuals in a recession?
4. Under what conditions should additional work to improve a forecast be undertaken?
5. What are opinion polls? Why are they used in forecasting demand?
6. Define and explain ‘returns to scale’. What is the difference between ‘returns to scale’
And ‘productivity’ ?
7. Discuss the relationship of ‘economies of scale’ to ‘returns to scale’.
