ECO101A: TUTORIAL PROBLEM SET 2 (SEM-I, 2015)
1. Use supply and demand curves (graphically) to illustrate how each of the following events would
affect the price of butter and the quantity of butter bought and sold:
a. An increase in the price of margarin
MULTIPLE CHOICE PROBLEMS
1. The distribution problems in Samuelson are often referred to as the
(a) WHAT problems.
(b) HOW problems.
(c) FOR WHOM problems.
2. In a limited liability firm, the legal owners
(a) are the shareholders.
(b) are the managers.
(c
1
ECO 101
Problem Set 5
1. Consider a competitive firm whose short run cost function is
STC (Y) = 2Y3 24Y2 + 100Y + 1600.
(a)
(b)
(c)
(d)
(e)
(f)
Obtain the supply function of the firm.
What is the shut down price?
What is the capacity output of the firm?
1
ECO 101
Problem Set 5
1. Consider a competitive firm whose short run cost function is
STC (Y) = 2Y3 24Y2 + 100Y + 1600.
(a)
(b)
(c)
(d)
(e)
(f)
Obtain the supply function of the firm.
What is the shut down price?
What is the capacity output of the firm?
1
ECO 101
Problem Set 4
1.
The short run production function is
2
3
Y 24 L 2 L
. Draw the MP (L) and the AP (L)
functions. Does the production function depict Law of Variable Proportion?
2.
Consider the production function
Y AKL , 0 and A, K
are constants
ECO 101
Problem Set 1
1. Classify the following factors of production:
bonds, manager, raw material, office building, CEO
2. Name the factor prices of the following factors:
debt capital, proprietor, machine, technology, author, share capital,
office buil
ECO 101
Problem Set 3
1. Consider the following observations from the utility function of a consumer:
Amount:
Utility (Utils):
1
2
3
4
5
6
7
5
11
16
20
23
24
20
(a) Obtain the marginal utility schedule.
(b) Suppose marginal utility of money is one util. H
1
ECO 101
Problem Set 4
1.
The short run production function is Y 24L 2L . Draw the MP (L) and the AP (L)
functions. Does the production function depict Law of Variable Proportion?
2.
Consider the production function Y AKL , 0 and A, K are constants. Does
ECO 101
Problem Set 2
1. Consider the following market demand and supply functions, respectively:
P = 100 X and P = 4X where P is the price of the good and X is the amount
demanded and supplied.
(a) Is the market demand price elastic at the equilibrium po
The Stata Journal
Editor
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Texas A & M University
College Station, Texas 77843
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Executive Editor
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Department of Geography
University of Durham
So
27- 1
Chapter 27
MONEY AND MONETARY
INSTITUTIONS
27- 2
Learning Outcomes
Money acts as a medium of exchange, a unit of account,
and store of value
The existence of money facilities a wider range of
transactions than would otherwise be feasible
Money ha
33- 1
Chapter 33
INTERNATIONAL
TRADE
33- 2
Questions in our mind
Do imports of goods made with cheap
foreign labour destroy jobs at home?
Is globalization making the rich richer and
the poor poorer?
Should our government subsidize our
domestic industri
21- 1
Chapter 21
MACROECONOMIC ISSUES
AND MEASUREMENT
21- 2
Learning Outcomes
Macroeconomics is about aggregate phenomena such as
economic growth, business cycles, inflation,
unemployment and the balance of payments
The total output of the economy as a
ECO101A TUTORIAL PROBLEM SET 9
NOTE: FIRST REMAINING QUESTIONS OF TUTORIAL PROBLEM SET 8 WILL BE
DISCUSS
1. A monopolist faces the following inverse demand functions : P1(X1) = 80-5X1 ;
P2(X2) = 180-20X2 ; C(X) = 20X .Find the equilibrium output levels ,
ANSWER FOR PRACTICE PROBLEM SET 1
QUESTION NO
1
2
3
4
5
6
7
8
9
10
11
12
13
ANSWER
C
B
C
A
D
C
D
Demand curve = 32.-4.7P
Supply curve = 11.75 + 5.875P
a) Ed = -3.09
b) Ed = - 0.309
a) Qgp = 325 and Qs = 60
b) Egp = - 0.54 and Es = - 2.33
c) No , he is not
Chapter 2
Kinematics
2.1 Introduction
Kinematics is the study of motion of objects. These could be particles, rigid bodies, or even deformable bodies. We use these categorizations to describe naturally
occurring objects in the real world. Thus, stars as o
TUTORIAL PROBLEM SET 7
1. Suppose you are the manager of a watch making firm operating in a competitive
market. Your cost of production is given by C = 200 + 2q2, where q is the level of
output and C is total cost. (The marginal cost of production is 4q;
ECO101/101A: TUTORIAL PROBLEM SET I (2015)
Choose the best alternative for the given questions below:
1. Which of the following not deals with the study of microeconomics?
a) Investors
b) Owners of land c) Inflation
2. Which of the following are macroecon
ECO101: TUTORIAL PROBLEM SET 11
QUESTION NO 1:
Consider two firms facing the demand curve P = 50 5Q, where Q = Q1+ Q2. The firms cost
functions are C1(Q1) = 20+10Q1 and C2(Q2) = 10+12Q2.
a. Suppose both firms have entered the industry. What is the joint p
ECO101A: TUTORIAL PROBLEM SET 10
NOTE: YOU CAN COLLECT PRACTICE PROBLEM SET 5 AND 6 ALONG WITH ANSWER KEY.
ALSO COLLECT ANSWER KEY OF PRACTICE PROBLEM SET 4 FROM HALL 4 XEROX
CENTER.
1. A monopolist faces the following demand curve: Q = 144/P2 , where Q i
TUTORIAL PROBLEM SET 8
NOTE: YOU CAN COLLECT PRACTICE PROBLEM SET 4 FROM HALL 4 XEROX CENTER
1. There are 100 bakeries producing bread at a neighborhood with 10,000 households.
Each households demand curve is given by p = 5 yD, where yD refers to hundreds
ECO101 A TUTORIAL PROBLEM SET 5
NOTE: YOU CAN COLLECT PRACTICE PROBLEM SET 2 FROM HALL 4 XEROX CENTER.
1. Do the following functions exhibit increasing, constant, or decreasing returns to
scale? What happens to the marginal product of each individual fact
ECO101A TUTORIAL PROBLEM SET 3 (SEM I, 2015)
1. The demand curve for bananas is given by the equation p= 800 - 2q. At what point
on the demand curve is the price elasticity of demand for bananas equal to - 1?
2. Comment on the shape of indifference curve
TUTORIAL PROBLEM SET 4
1. Maurice has the following utility function: U(X,Y) 20X 80Y X 2 2Y 2, where
X is his consumption of CDs, with a price of $1, and Y is his consumption of movie
videos, with a rental price of $2. He plans to spend $41 on both forms
Question 1
In your own words, define the terms Economics; Microeconomics and Macroeconomics.
solutions
Question 1:
Economics is simply the study of how individuals and groups make decisions on allocating limited
resources to meet unlimited wants.
Microeco
Question 6
Explain the term Ceteris Paribus and its significance in the study of Microeconomics.
Solutions
Question 6:
Ceteris paribus is an important assumption in Economics where other factors are held equal or
same.
This helps to focus on relationships
Question 7
Suppose demand curve is given by: Qd = 200-5P and supply curve is Qs=3P+40.
Assume price is in $ and quantity in units.
a) Find the equilibrium price and equilibrium quantity.
b) If the current market price is at $18; find the shortage in the m
Question 11
a) If the cross-price elasticity of demand for products A and B is +3.6 and for products C and
D is -5.4, what can you conclude about how these pairs of products are related?
b) Suppose the income elasticities of demand for movies, dental trea
Question 3
Discuss the five big economic questions and why these questions are important to be answered.
Solutions
Question 3:
What, When, Where, How and for Whom to produce. Good decisions will result in less wastage of
resources, maximum production and