Economics Answers

5.1 With the aid of diagrams differentiate between a price ceiling and a price floor as government intervention measures to market failure. (12 marks)
5.2 Explain which one of the above market control measures is applicable in the labour market and justify why it is important. (8 marks

6.1 The goal of any firm is to maximise profit, discuss the two (2) rules of profit maximisation for a firm. (15 marks)
6.2 Discuss ANY FIVE (5) features of a firm under oligopoly. (5 marks)

5.1 Explain the difference between normal profit and economic profit. (5 marks)
5.2 Explain ANY FOUR (4) factors of production . (4 marks)
5.3 Explain with the aid of a properly labelled diagram, the marginal revenue curve facing a perfectly competitive firm.
(11 marks)

4.1 Differentiate with examples, total cost (TC), total fixed cost (TFC) and total variable cost (TVC). (6 marks)
4.2 Explain with examples, the following; (9 marks)
4.2.1 Constant returns to scale.
4.2.2 Increasing returns to scale.
4.2.3 Decreasing returns to scale.
4.3 Distinguish between explicit costs and implicit costs. (5 marks)

3.1 In the market for cars, the trade union has successfully negotiated a 20% increase in wages for workers in this sector. With the aid of a well labelled diagram, explain the effect of the wage increase (ceteris paribus) on the supply of cars. (6 marks)
3.2 In 3.1 above, with the aid of a well labelled diagram describe the effect an improvement in worker productivity (ceteris paribus) will have on the supply of cars. (6 marks)
3.3 Briefly explain ANY FOUR (4) determinants of supply for the car market in your country. (8 marks)

John has a utility function
U(B,Z)=AB^(1/α) Z^(1/β), where A, α and β are constants, B is burritos, and Z is pizzas. If the price of burritos, Pb is 10 and the price of pizzas, Pz, is N$5, and Y is N$1790, what is John’s optimal bundle

How is the budget process affected by revenue forecasting ?

Mandla has a utility function U(B,Z)=AB^(1/α) Z^(1/β), where A, α and β are constants, B is burritos, and Z is pizzas. If the price of burritos, Pb is 10 and the price of pizzas, Pz, is $5, and Y is $1790, what is Mandla’s optimal bundle?

U(B,Z)=AB^(1/α) Z^(1/β), where A, α and β are constants, B is burritos, and Z is pizzas. If the price of burritos, Pb is 10 and the price of pizzas, Pz, is N$5, and Y is N$1790, what is John’s optimal bundle

Features of Ramsey model for decentralized households