EKN semester test 2 2018.pdf

EKN semester test 2 2018.pdf - FACULTY OF ECONOMIC AND...

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Unformatted text preview: FACULTY OF ECONOMIC AND MANAGEMENT SCIENCES DEPARTMENT OF ECONOMICS - ECONOMICS 110 — SEMESTER TEST 2 19 April 2018 Total: 30 marks Time: 60 minutes Examiners: Mr H Janse van Rensburg; Me S Kilambo; Me C Chisadza; Me L Walters; Mr J Matitu; Prof M Breitenbach; Mr M Molifyani. External Examiner: Dr R Seymore ANSWER ALL THE UESTIONS AND SHOW ALL CALCULATIONS Question 1: Caiculate the values for the indicated cells A - E. In your answer book, just indicate the value of the missing information labeled A to E, e.g. A : 74 in your script. {5) 30 ,5 —_ QuestiOn 2: 2.1 Define the following concepts: at) Diminishing Returns (2) b) Concave Function (2) c) Marginal Rate of Transformation (2) d) Opportunity Cost (2) e) Feasible Frontier (2) Question 3: 3.1 Illustrate diagrammatically the point Where a consumer will reach its optimal choice given the theory of Feasible frontier and Indifference curves. (4) 3.2 What economic rule applies at this optimal point? (2) 3.3 List four characteristics of an Indifference curve. (4) Question 4: Use the following information to construct a budget line and indicate where the optimal choice for the consumer will be given the theory of indifference curves. (Put Y on the vertical axis) R100 (5) ...
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