Comprehensive Economics Assignment: Questions and Answers Provided

This document provides a comprehensive set of solved questions for an economics assignment, covering various topics within the field. The assignment is divided into multiple-choice questions, each with a single correct answer identified. The questions span microeconomic and macroeconomic principles, including supply and demand, elasticity, cost analysis, market structures, and economic indicators. Specific topics addressed include consumer behavior, production costs, market equilibrium, and the role of government intervention. The solutions offer insights into fundamental economic concepts and their application to real-world scenarios. Desklib provides students access to similar past papers and solved assignments to aid in their studies.

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Running Head: V
Economics Assignment
Questions and Answers

ECONOMICS ASSIGNMENT 1
Question Number Option Answers
1. B Upward movement along the
demand curve
2. D 0
3. A MB>MC
4. C Inelastic
5. D Supply curve shifts leftwards
6. B Limited resources
7. A $1500
8. B Increase supply with increase
in price
9. B $20
10. D Relative price of LG falls
11. A Addition to TC
12. C Some fixed resources
13. A Price increases and demand
falls
14. C Cooperative game
15. B Cheaper production
16. D Equilibrium quantity will rise
17. C MR=0
18. B Demand curve and MR curve
19. D Price of plastic bags will
increase
20. D Quantity will increase and
price will decrease
21. C No sacrifice of output is
involved, as both can be
produced more efficiently.
22. B Microeconomics: individual
Macroeconomics: aggregate
23. D It falls.
24. C Maximise the profits by
minimising damage from
competition
25. C Relatively elastic
26. B Producers will produce other
goods

ECONOMICS ASSIGNMENT 2
27. C $400
28. B Price decrease, QS:
decreases, QD: increases
29. B Average variable cost
30. B Equal to $1.95
31. C Not maximising profits
32. A Per unit cost declines with
increase in output
33. C Microeconomics and
macroeconomics
34. B Marginal benefit of
additional unit equals zero
35. B Increases
36. C More oranges and less
bananas
37. A Quantity: same
Price: rise
38. C Shortage of wheat
39. D Below demand curve and
above the price line
40. B Price of the product
41. B -15 bicycles
42. A Diminishing marginal utility
43. A Firm demand: perfectly
elastic
44. D $68
45. B Increase tuition to increase
revenue
46. C Do not vary with output
47. A Improved education and
training
48. C Illegal means
49. D Scarcity
50. A Four cupcakes sacrificed for
one cake
51. B Price and quantity supplied
52. B Fewer oranges and more
bananas
53. D Becomes smaller
54.
55. C Economies of scale

ECONOMICS ASSIGNMENT 3
56. C Economic profits are zero
57. C AFC
58. D Factor market
59. B Positive economic statement
60. B Price maker
61. C Equal to infinity
62. C Inelastic demand
63. B Demand for Chinese food
will increase
64. B Consumer surplus will
decrease
65. C Increase in demand for
biofuels
66. D 15 bicycles
67. A Expand output
68. C Shut down
69. D Firm chooses best strategy
given the strategies of the
others
70. C 500
71. A Production of both can be
increased
72. C Demand and supply forces
73. B MR=MC
74. C Corn is more abundant than
before
75. C MR=P
76. B $4.50
77. D Price and quantity will
increase
78. A Surplus will be created
79. B Interest, profits, rent, wages
and salaries
80. C Less than $500
81. B Increase profit by increasing
output
82. D It increases
83. D Both will decrease
84. C Increase

ECONOMICS ASSIGNMENT 4
85. C P=TR-TC
86. C ATC= AVC+AFC
87. D Supply shifts leftwards