Scribd
Upload
52 views4 pages

Assignment Questions

This document contains an assignment for a Principles of Microeconomics course. It includes 7 questions across 3 sections - Demand, Supply, Price Ceilings and Floors; Economies and Diseconomies of Scale and Long Run Cost Curves; and Distribution of Income. The questions require explaining concepts like consumer surplus, inferior goods, price ceilings and floors, economies and diseconomies of scale, as well as factors of production. Students must also analyze how economic concepts relate to a provided article and the effects of events in the article on individuals, households and the country. Government intervention strategies are also to be discussed.

Uploaded by

Aliyah Ali
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
52 views4 pages

Assignment Questions

This document contains an assignment for a Principles of Microeconomics course. It includes 7 questions across 3 sections - Demand, Supply, Price Ceilings and Floors; Economies and Diseconomies of Scale and Long Run Cost Curves; and Distribution of Income. The questions require explaining concepts like consumer surplus, inferior goods, price ceilings and floors, economies and diseconomies of scale, as well as factors of production. Students must also analyze how economic concepts relate to a provided article and the effects of events in the article on individuals, households and the country. Government intervention strategies are also to be discussed.

Uploaded by

Aliyah Ali
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 4

Aliyah Amisha Ali

Principles of Microeconomics- ECON120- Co2 Mr. Wayne Bissoo


College of Science, Technology and Applied Arts of Trinidad and Tobago

ASSIGNMENT QUESTIONS

Demand, Supply, Price Ceilings and Price Floors


(1) Using graphical illustrations explain consumer surplus (5 marks)
(2) Explain the following using examples:
a. Inferior Good (2 marks)
b. Giffen Good (2 marks)
c. Veblen Good (2 marks)
(3) Distinguish between price ceilings and price floors. (3 marks)
(4) Explain any two advantages and two disadvantages of price ceilings and price floors.
(6
marks)
(5) Despite the disadvantages of price ceilings and price floors why may governments still
choose to implement these two forms of pricing strategies? (5 marks)

Economies and Diseconomies of Scale and the shape of the Long run Cost Curve
(1) Distinguish between economies and diseconomies of scale, ensuring to differentiate between
internal and external economies and diseconomies of scale (5 marks).
(2) Explain the general shape of the long run cost curves in relation to economies and
diseconomies of scale. (5marks)
(3) Identify and describe three examples of economies of scale and three examples of diseconomies
of scale and explain why economies of scale are only available in the long-run? (15 marks)
Distribution of Income
(1) Explain the four factors of production (6 marks)
(2) Provide explanations for the following concepts:
a. Derived demand (3 marks)
b. Factor Income (2 marks)
c. Transfer earnings (2 marks)
d. Economic Rent (2 marks)
(3) Briefly explain why the demand for concert tickets is considered a derived demand (5
marks)
Aliyah Amisha Ali
Principles of Microeconomics- ECON120- Co2 Mr. Wayne Bissoo
College of Science, Technology and Applied Arts of Trinidad and Tobago

END OF ASSIGNMENT ONE

This assignment will be assessed using the marking system below:


Content: 70%

Organization, layout and presentation: 10%


Language usage: 10%
Citation: 10%

The demand for concert tickets is described as derived demand because when economy slows
down, Consumers are more likely to purchase currents products or save their cash in preparation
for winter season than to purchase a concert ticket. The number of events and other concerts play
a major part in Companies’ decision making of whether to provide a concert event or not. The
demand for concert tickets is therefore described as derived demand.
Aliyah Amisha Ali
Principles of Microeconomics- ECON120- Co2 Mr. Wayne Bissoo
College of Science, Technology and Applied Arts of Trinidad and Tobago

Demand, Supply, Price Ceilings and Price Floors


Consumer Surplus is the distinction between market price of an item and the value consumers are
willing to pay. Below is a graphical representation of Consumer Surplus of a particular good and the
price consumers are willing to pay.
 In the graph below, a consumer is willing to pay $1000.00 for the first good but the actual
price is $200.00
 Consumer surplus for the first orange is $1000.00 for the first 7 oranges.
 On the diagram, consumer surplus is identified and the area of the left of the demand curve
and above the price line.

Explain the following using examples:


a. Inferior Good (2 marks)
Aliyah Amisha Ali
Principles of Microeconomics- ECON120- Co2 Mr. Wayne Bissoo
College of Science, Technology and Applied Arts of Trinidad and Tobago

b. Giffen Good (2 marks)


c. Veblen Good (2 marks)
Inferior goods are goods whose consumptions decreases with an increase consumer’s income or
expansion of the economy. For example, potatoes are considered inferior goods in some countries,
as persons income goes up, persons shift their consumption towards meats and poultry and deviate
away from potatoes which in fact decreases the consumption of potatoes

Giffen goods are goods whose

Article Journal Questions


Out of 50
1.         What is the article about? (5 marks)
2.         Identify two (2) economic concepts discussed in the course thus far that have been
addressed by the article.  Define each of these concepts and                explain how these economic
concepts have been addressed in the article.  Please provide examples from the article to support
your explanation                of the relationship between what is discussed in the article and the
economic concepts (10 marks)
3.         Discuss one (1) positive and one (1) negative effect the events, decisions etc., being
discussed in the article may on you as an individual? 
            (5 marks)
 4.         Describe two (2) positive and two (2) negative effects the events, decisions etc., being
discussed in the article may or will have on a typical                         household in Trinidad and
Tobago.       (10 marks)
5.         Describe one (1) positive and one (1) negative effect the events, decisions etc., being
discussed in the article may or will have on the country as a              whole? (5 marks)
 6.         Do you think government intervention is necessary to address the issue(s) being discussed
in the article, please provide reason(s) to support                    your response?  Describe one (1) likely
outcome if the government intervenes?  Please note you are NOT to identify the intervention       
strategies. (7 marks)
 7.         Describe three (3) measures that you would recommend the government implement to deal
with this issue(s) or problem(s) discussed in the                       article.

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy