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Assignment (2)

# Assignment (2)

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06/25/2013

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# ASSIGNMENT ECO162 MICROECONOMICS JULY – NOV 2009 Instructions: 1. Form a group of 4 or 5 members. 2.

On the cover of the assignment, please write: a. Names and matrix no. of ALL group members. b. Programme/part/group. 3. The assignment must be submitted NO LATER than 15th October 2009.

TASK 1 – Answer ALL questions. 1. Explain how Socialism and Capitalism solve the three basic economic problems. 2. Explain 4 differences between Islamic and conventional economic systems. 3. Explain the concept of scarcity, choice and opportunity cost. 4. Draw all diagrams (with labels) as stated below: a. Chapter 1: The concave PPC with points showing efficient production, inefficient production and scarcity problem. b. Chapter 2: i) The consumer’s equilibrium. ii) The changes in Qd and changes in Dd curve. c. Chapter 3: Market equilibrium with a floor price. d. Chapter 4: i) The production curves (TP, MP, AP) in one diagram. ii) The cost curves (TC, TVC and TFC) in one diagram. e. Chapter 5: i) Perfect Competition curve – the 3 short run profits and long run profit. ii) Monopoly curve – the 3 short run profits and long run profit. iii) Oligopoly curve – the Sweezy’s model. 5. Write down the formula to calculate cross elasticity of demand. Explain the importance of its coefficient. 6. Summarize the concept of the Law of Diminishing Marginal Return. 7. Explain 4 determinants of demand. 8. Explain 4 determinants of price elasticity of demand. 9. Using a diagram, explain and distinguish between elastic supply and inelastic supply. 10. Discuss 4 characteristics of monopolistic competition. TASK 2 (PAST FINAL EXAMS) – Answer PART C ONLY. Each group must select ONE of the past final exam questions as listed below. Please make sure that you don’t choose the same question. Attach a copy of the question. 1. 2. 3. 4. APR 2009 OCT 2008 APR 2008 OCT 2007 5. 6. 7. 8. APR 2007 OCT 2006 APR 2006 NOV 2005 9. MAR 2005 10. OCT 2004

APR 2003 14. SEP 2002 15. SEPT 2001 . MAR 2004 12. OCT 2003 13.11. MAR 2002 16.

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