Micro Economics Test Questions By cinema a. Define Genesis Possibilities Curve. . The condition under represents the genesis possibility frontier for the feeble note of Bistro, which produces singly unroving effects (measured in thousands of tons) and manufacturing effects (measured in thousands of pulverizes): Does the genesis possibility frontier present the law of increasing turn consume? How can you describe? C. What falls too country's genesis possibility frontier if it experiences a spontaneous tribulation such as a efflation or an earthquake? Explain. D.
Why are the turn consumes of an MBA disequalize way senior than the turn consume of a B. Bus or B. Com underdisequalize way? MBA ward is competent sufficient to genesis and deserve a remuneration consequently he/she Has knishes her undergrad. Become ward has fewer chances to get a Job consequently he/she is quiet doing undergraduate. The turn consume substance coin past if MBA ward went to genesis. Question 2 (2+3+5 = 10 marks) a. What is the distinction among a vary in insist and a vary in share insisted? B.
For each of the subjoined traffics, point-out whether the orderly vary accounts a disfix of the contribute incurvation, a disfix of the insist incurvation, a move ahanker the contribute incurvation and employer a move ahanker the insist incurvation. I) The housing traffic: consumers' proceeds increases it) The computer traffic: the compensation of broadband alls iii) The arrange traffic: the compensation of arrange increases and the totality of arrange mob are desirous to buy dismiss iv) The fast-subsistence traffic: the estimate of fast- subsistence restaurants in the area increases of consumers in the area decreases yogurt falls v) The video-rental traffic: the estimate v') The ice-cream traffic: the compensation of frozen c.
What is a compensation ceiling? Suppose that the makeweight solution for a two-bedroom berth in Chucking city is REARM per month. The city fraternity decides to fix a compensation ceiling on berths and conquer not concede landlords to admonish further than REARM ere month. Draw this position using a graph. Make infallible that you demonstration the primary makeweight and the issue of the compensation ceiling on the traffic. What conquer fall in this Question 3 (4+4+2=10 marks) a. Briefly interpret whether the insist for each of the subjoined effects is mitigated to be modifiable or firm. ) Cereal modifiable I') Economics passage books iii) Cola modifiable iv) Prescription remedy inmodifiable b. The compensation of pocket rises from ROOM. 20 per pulverize to ROOM. 30 per pulverize. The share of pocket insisted falls from 800 pulverizes per week to 600 pulverizes per week. Use the midpoint formula to reckon the compensation modifiableity of insist for pocket. Is the insist modifiable, firm, or part modifiable? C. Interpret why contribute is further modifiable in the hanker run?
Firms conquer accept era to dispose the factors of genesis Question 4 (3+4+3=10 marks) a. State and interpret the Law of Diminishing Ultimate Returns. States that increasing the totality of altering input such as work to a agricultural totality of input such as machinery conquer account the ultimate effect of that altering to dismiss. B. Which of the subjoined are lacking-run disposements and which are hanker-run disposements? Interpret your answers. ) Holder builds a new parterre stock. Hanker run I') BP Billion hires 200 further genesisers.
Short run iii) A boor increases the totality of fertilizer used on a wheat crop. Lacking run iv) An Alcoa stock adds a third disfix of genesisers lacking run c. Interpret the distinction among the economic consume and the accounting consume. Economic consume is the summation of plain consume and implied consume. Accounting consumes are plain consumes singly. Plain consumes are consume that insist-upon spending of coin such as solution or work allowance. Implied consume are non-monetary turn consumes such as a fraternity using it solutioned it out.