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    Economics(110) Tutorials Questions by Data Sana Tutorials

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    Economics(110) Tutorials Questions by Data Sana Tutorials

    Uploaded by

    grahamkangozhi
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    Economics(110) Tutorials Questions by Data Sana Tutorials

    Uploaded by

    grahamkangozhi

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    DATA SANA TUTORIALS

    1. Make brief notes on your understanding of economics. Are there significant


    differences between microeconomics and macroeconomics?

    2. Consider the table below that shows the PPF for the republic of Zambia.

    OPTIONS GUNS BUTTER(Kg)


    A 0 20
    B 2 18
    C 5 14
    D 9 6
    E 10 0

    i. Draw the PPF for Zambia clearly showing the points A, B, C, D and E.

    ii. Find the opportunity cost of producing 5 Guns.

    iii. Find the opportunity cost of producing 9 Guns.

    iv. Find the marginal opportunity of producing the 9th, Gun.

    v. What is the significance of the shape of your PPF drawn in (i) above.

    vi. What is the significance of the downward slopping PPF.

    vii. Find the opportunity cost of producing 14Kg of Butter.

    viii. Find the marginal opportunity cost of producing the 14th Kg of Butter.

    ix. Why are the answers in (vii) and in (viii) different?

    3. The university produces two commodities: research and teaching. The resources
    the university uses include faculty and staff, libraries, classrooms and so on. The
    following points indicate some points on the Universities PPF:

    1
    A B C D E F G
    Research 900 750 600 450 300 150 0
    Teaching 0 20 45 75 110 150 200

    a) Does research production by the university exhibit increasing, constant or


    decreasing per unit opportunity cost?
    b) Graph the university’s PPF (assuming that straight line segments connect the
    points specified above). Indicate which areas of the graph correspond to
    unattainable production points, production points that make most effective use of
    the university’s resources and points where there are un employed resources.
    c) Supposing the university is at point B but would like to alter production to point
    C. What would be the per teaching unit opportunity cost of producing the extra
    teaching unit?
    d) What will happen to the PPF if the university resources are reduced to half?

    4. A nation with fixed quantities of resources is able to produce any of the following
    combinations of Bread and ovens
    Loaves of Bread (millions) Ovens (Thousands
    75 0
    60 12
    45 22
    30 30
    15 36
    0 40

    a) Using the data in the table, graph the PPF (with ovens on the vertical axis)
    b) Does the principle of increasing opportunity cost hold in this country (explain in
    terms of what happens to bread production measured in number of ovens as bread
    production increases).

    2
    5. Make short notes ion the following concepts
    a) The economic problem
    b) Opportunity cost
    c) Economic systems
    d) The methodology of economics
    e) Scarcity
    f) Choice

    6. Consider the Table below representing the number of 21-inch colour TV’s individuals
    are willing to purchase in Ndola and Kitwe:

    Price Quantity Demanded-Kitwe Quantity Demanded-Ndola


    K350 100 75
    K325 150 100
    K300 200 125
    K275 250 150
    K250 300 175

    a) Plot these data, with price (P) on the vertical axis and quantity (Q) on the
    horizontal axis. Connect the points for quantity demanded in Ndola and Kitwe.
    Lebel the Ndola line D1 and the Kitwe line D2).
    b) Find the increase in the quantity of TV units purchased in Ndola and Kitwe when
    the price of TV’s is lowered from K300 to K275.
    c) Find the slope of the Demand lines D1 and D2 when the price is lowered from
    K300 to K275.
    d) What does the difference in the slope of demand lines D1 and D2 indicate?

    7. In your own words and in half 300 words, distinguish micro from macroeconomics.

    8. Below is data for unemployment between 1987 (Quota1) and 1990 (Quota 1):

    Year 1987 1988 1989 1990


    Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
    % 10.9 10.6 10.1 9.5 8.9 8.5 8.0 7.6 7.0 6.6 6.3 5.9 5.7
    unemployment

    a) Draw a time series graph using the data in the table


    b) What conclusions can you draw from the data?

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    3

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