Microeconomics Answers

b. Discuss the items you would include to figure out the opportunity cost of a vacation to Northern Pakistan? (0.5 Marks)
Answer



Question # 2: (2 Marks)

a. Draw and explain a production possibilities frontier for an economy that produces cheese and milk. What happens to this frontier if a disease kills half of the economy’s cows? (1 Mark)
b. Use a production possibilities frontier to describe the idea of “efficiency.” (1 Mark)

Which of the following does not affect an individual’s supply curve?
1. Changes of input prices.
2. Technological innovations

3. Expectations
4. The number of seller


Suppose the market for cement is such that the government does not interfere in price determination but plays an important role in the provision of property rights. While there are a large number of buyers and sellers, everyone conducts transactions at a common market price. Which of the following statements is true about the structure of the cement market? (can be more than one answer)

1. The cement market is government regulated.
2. The cement market is free and competitive.

3. All participants in the cement market are price makers.
4. All transactions in the cement market are likely to be involuntary.

When America country was being settled, there was an acute shortage of agricultural labor. Over the last 100 years millions of Americans have left the farms. How have we managed to feed our growing population with fewer and fewer farmers?

Discuss the items you would include to figure out the opportunity cost of a vacation to Northern Pakistan?

The South African union of students has tasked you to prepare a discussion document to establish the reason why Internet data is so expensive in South Africa. They have learnt from Arthur Goldstuck, managing director of researchers World Wide Worx, that South Africa has 21 million Internet users, The vast majority of which are using mobile, according to new research that shows 40% of the population will go online this year. The Student organisation feels that lower data costs will assist in opening many avenues of learning, and creating jobs in the Economy. Hence they would like to understand the key Factors which Influence the supply of Internet data, and to confirm whether data costs are expensive in South Africa, so that they may develop strategies to make ‘ Data prices fall!’.

Using the demand and supply model, discuss the supply of Internet data in South Africa.

The South African union of students has tasked you to prepare a discussion document to establish the reason why Internet data is so expensive in South Africa. They have learnt from Arthur Goldstuck, managing director of researchers World Wide Worx, that South Africa has 21 million Internet users, The vast majority of which are using mobile, according to new research that shows 40% of the population will go online this year. The Student organisation feels that lower data costs will assist in opening many avenues of learning, and creating jobs in the Economy. Hence they would like to understand the key Factors which Influence the supply of Internet data, and to confirm whether data costs are expensive in South Africa, so that they may develop strategies to make ‘ Data prices fall!’.

Using the demand and supply model, discuss the supply of Internet data in South Africa.

Discuss the items you would include to figure out the opportunity cost of a vacation to Northern Pakistan?