VoWiFi 4°lO0:88%8:24ВСОМАС_Ес..Page 1 of 3QUESTION ONE[30]1.1 Explain the basic economic problem of scarcity.(10)1.2 List and discuss the two (2) main factors of economic growth according to the productionpossibility frontier model.(12)1.3 Analyse the consumer equilibrium condition according to utility theory. Include in your answer theprovision of its formula.(8)QUESTION Two[25]2.1 Question 2.1.1 to 2.1.2 is based on the diagram below relating to the demand and supply model:Price ofwheatASupplyD.F.G.DemandKQuantity of wheat2.1.1 Explain the point E.(3)2.1.2 If a government imposed a minimum price at point A; discuss the type of price control thiswould be and its economic effect using the diagram to substantiate your answer.(10)2.1.3 List and discuss three (3) factors affecting the upward sloping curve.(12)QUESTION THREE[25]3.1 Recommend to a business manager how to establish in terms of elasticity of demand, whetherthe products that his business is producing are complement goods or substitute goods inconsumption.(11)3.2 Discuss the main feature behind the long run average cost curve in terms of usage of input. (6)Page 2 of 33.3 Explain the long-run profit maximising position of a monopolist. Substantiate your answer bychoosing and applying the ONE correct diagram below:(8)PriceLRMCMCZero Ecu. mic ProfitLRATC

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QUESTION ONE [3 1.1 Explain the basic economic problem of scarcity. (1 1.2 List and discuss the two (2) main factors of economic growth according to the production possibility frontier model. (1- 1.3 Analyse the consumer equilibrium condition according to utility theory. Include in your answer ti provision of its formula. (8

QUESTION ONE [3 1.1 Explain the basic economic problem of scarcity. (1 1.2 List and discuss the two (2) main factors of economic growth according to the production possibility frontier model. (1- 1.3 Analyse the consumer equilibrium condition according to utility theory. Include in your answer ti provision of its formula. (8

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter2: Choice In A World Of Scarcity

Section: Chapter Questions

Problem 7SCQ: Would a research study on the effects of soft drink consumption on childrens cognitive development...

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12- Economics
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E2 Describe the difference between the "endogenous" and the "exogenous" variables of an economic model. Which type of variable is, by construction, independent of all of the other variables in a model? In the supply/demand model of a competitive market which variables are endogenous and which are exogenous (give at least 3 of each type)?
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4. Shifts in production possibilities Suppose the fictional country of Olympia produces two types of goods: agricultural and capital. The following diagram shows its current production possibilities frontier for rye, an agricultural good, and microprocessors, a capital good. Drag the production possibilities frontier (PPF) on the graph to show the effects of a time-saving innovation in the manufacturing of microprocessors. Note: Select either end of the curve on the graph to make the endpoints appear. Then drag one or both endpoints to the desired position. Points will snap into position, so if you try to move a point and it snaps back to its original position, just drag it a little farther. ? MICROPROCESSORS (Thousands) 400 400 320 240 160 80 100 270 PPF W م PPF
What does a production possibilities graph show in economics? how many items can be produced in a specific amount of time possible production costs one's final choice one's top two choices when making a decision
In a microeconomic model, how would you differentiate between an 'exogenous' variable and an 'endogenous' variable? O Endogenous variables are those determined within the model, while exogenous variables are given from outside the model. O Exogenous variables are those which economists do not study, while endogenous variables are heavily studied. O Exogenous variables are variables that economists cannot measure, while endogenous variables are measurable. Exogenous variables cannot influence endogenous variables in any economic model. O More than one of the above.
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“All problems in economics are about scarcity, that is, about how to use given resources for satisfying competing objectives”. Discuss this statement using real-world examples and referring to the two fundamental paradigms in economics and their analytical features.
Which of these situations describe an equilibrium, and which does not? If not, what would an equilibrium look like? Remember that the definition of equilibrium means, in part, that there is no incentive or push/pull to change from the current described state. Many people regularly commute from the suburbs to the downtown area of a local city. Due to traffic congestion, the trip takes 30 minutes when you travel by highway, and15 when you go by side streets. There are 2 gas stations at the intersection of Main and Vine. One charges $3.75 for regular and the other charges $3.25. Customers can get gas immediately at the first station, but must wait in long lines at the second. Every student who enrolls in econ principles must also attend a weekly tutorial. This semester, 2 sections are offered, which meet at the same time, in adjoining classrooms and are taught by equally competent and liked instructors. Section A is overcrowded with people sitting on the floor and unable to see the board…
Question 1 What does the Production Possibilities Frontier of a firm show and how does it relate to scarcity and budgeting? Draw the Production Possibilities Frontier for a firm producing two goods, and explain what the various positions in the diagram mean.