Question one
Multiple choice Questions
1.1. E
1.2. B
1.3. E
1.4. E
1.5. B
1.6. B
1.7. B
1.8. B
1.9. C
1.10. D
1.11. B
1.12. B
1.13. D
1.14. B
1.15. B
1.16. B
1.17. D
1.18. C
1.19. B
1.20. A
Question two
Using a Production Possibility Curve (PPC), we can describe the production of two goods, X and Y
Point b and c represent maximum attainable combination
Point a represents unattainable combination
Point d represents attainable but inefficient combination
Question Three
3.1 A change in demand curve
3.2. A change in the quantity demanded Question four Question five
5.1
5.2.
.
Question six
Question 7
According to Surbhi (2016), Normal Goods are defined as “goods that are demanded in increasing quanities as the income of …show more content…
Income elastacity of normal goods is positve which means when the there is an increase in the income of consumers, the quantity demanded for goods and services increasing making there to be an outward shift in the demand cuve, and a decrease in income will cause there to be decrease in quantity demand causing there to be an inward shift in the demand curve. The following graphs illustrates the increase in the income of the consumer which causes a increase in the quanity demanded by the consumer, and a decrease in the consumer income will cause a drop in the quantity demanded by the …show more content…
Question 8
8.1
8.2.
Question 9
Total cost are cost which are incurred when producing goods or providing services and is made up of variable and fixed cost
Average cost is the production cost per unit of output and is calculated by dividng the total fixed cost and variable cost by the total numer of units of output.
Marginal cost is the addition cost which are incurred when prducing one extra unit than what was originally needed in the production.
There is a significant relationship between total cost and marginal cost, it is as follows
• When total cost increases marginal cost is said to be positive
• When marginal cost is positive total cost is rising
• When total cost is falling, marginal cost is negative
• When marginal cost is negative, total cost is falling
The relationship between marginal cost and average cost
• When marginal cost is lower than average cost, average cost falls
• When average cost is falling, the marginal cost must lie below it
• When marginal cost is higher than average cost, the average cost increases
• When average cost is rising, the marginal cost must lie above it.
Question 10
Explain the difference between nominal and real
Multiple choice Questions
1.1. E
1.2. B
1.3. E
1.4. E
1.5. B
1.6. B
1.7. B
1.8. B
1.9. C
1.10. D
1.11. B
1.12. B
1.13. D
1.14. B
1.15. B
1.16. B
1.17. D
1.18. C
1.19. B
1.20. A
Question two
Using a Production Possibility Curve (PPC), we can describe the production of two goods, X and Y
Point b and c represent maximum attainable combination
Point a represents unattainable combination
Point d represents attainable but inefficient combination
Question Three
3.1 A change in demand curve
3.2. A change in the quantity demanded Question four Question five
5.1
5.2.
.
Question six
Question 7
According to Surbhi (2016), Normal Goods are defined as “goods that are demanded in increasing quanities as the income of …show more content…
Income elastacity of normal goods is positve which means when the there is an increase in the income of consumers, the quantity demanded for goods and services increasing making there to be an outward shift in the demand cuve, and a decrease in income will cause there to be decrease in quantity demand causing there to be an inward shift in the demand curve. The following graphs illustrates the increase in the income of the consumer which causes a increase in the quanity demanded by the consumer, and a decrease in the consumer income will cause a drop in the quantity demanded by the …show more content…
Question 8
8.1
8.2.
Question 9
Total cost are cost which are incurred when producing goods or providing services and is made up of variable and fixed cost
Average cost is the production cost per unit of output and is calculated by dividng the total fixed cost and variable cost by the total numer of units of output.
Marginal cost is the addition cost which are incurred when prducing one extra unit than what was originally needed in the production.
There is a significant relationship between total cost and marginal cost, it is as follows
• When total cost increases marginal cost is said to be positive
• When marginal cost is positive total cost is rising
• When total cost is falling, marginal cost is negative
• When marginal cost is negative, total cost is falling
The relationship between marginal cost and average cost
• When marginal cost is lower than average cost, average cost falls
• When average cost is falling, the marginal cost must lie below it
• When marginal cost is higher than average cost, the average cost increases
• When average cost is rising, the marginal cost must lie above it.
Question 10
Explain the difference between nominal and real