Micro Economics | Assignment | New

Running head: Microeconomics
Microeconomics
Name of the Student
Name of the University
Student ID

Microeconomics1
Table of Contents
Answer 1..........................................................................................................................................2
Answer 2..........................................................................................................................................2
Answer 3..........................................................................................................................................3
Answer 4..........................................................................................................................................5
References........................................................................................................................................7

Microeconomics2
Answer 1
(a) Enrolling in a distance learning programme with WOU demands sacrifice of the current
occupation thus there will be a loss of benefit that could be gained from eh current occupation if
decision of enrolling is abandoned. However, two cannot be done at the same time and thus one
must be sacrificed. Therefore, to choose the best alternative the theory of choices and
opportunity cost should be applied (Newman, 2017). Thus, comparing the choices and there
associated opportunity cost, the option with lowest opportunity cost among the two should be
chosen.
(b) Efficiency means the optimum allocation of resources for production such that maximum
utilization of resources can be done. On the other hand, equity is the equal distribution of
resources through out a society. For example, cigarette smoking is injurious to health and causes
harm to the people surrounding a smoker and generates negative externality (Davies &
Fernandez, 2018). Thus, to mitigate this negative effect the government imposes same tax for
every one. Therefore, poor and rich both are paying the same tax. The poor are getting worse off
and thus equity hampers.
Answer 2
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Quantity demanded (tonnes)
Quantity supplied (tonnes)
Quantity
Price