Principles of Microeconomics I
Lekima Nalaukai
EC102
Semester I, 2015
Tutorial 1 Suggested Solutions
1. How do scarcity, choice and economic interaction fit into the definition of economics?
Scarcity
- The other definition is '-.*-.-'ben goode are
produced at lo'-.*-.-'eet boeeible coet end
broil-ride greeteet benefit. in eucb e eituetion
production will continue until: ME = lle.
- t-'"'-.-"l'iet
- As a ccnsumer ccnsumes more and more
Linit cf a given ccmmcciity-u he receives
less satisfaction from each aciciiticnal Linit
ccnsumeci Iii'IatLiiE. Since he receii-i-ies less
satisfaction! he is '-
- 1'-."u"li'lat is efficiency?
- i'-.-'is;d m u m o rod ucti ori '-.r-.-'iti'i road or u m use of
resources '-r-.-'iti'i minimum wastage.
- Therefore efficiency is iii-men resources are
fully employed
- This 00 is also referred to as rnarginal
costtjl'ni-leI. MO is the additional cost of
producing an additional Linit ofa
commodity-r.
- lfthe additional cost of additional units
produced is constant!
Production efficiency reguires resources
are fully utilized. These are all points along
a git-en F'F'F.
The other definition of production efficiency
is: maximum production of both goods at
lowest pos
Principles of Microeconomics I
Lekima Nalaukai
EC102
Semester I, 2016
Tutorial 9 Suggested Solutions
Part A: MULTIPLE CHOICES. Choose the one alternative that best completes the statement or
answers t
Principles of Microeconomics I
Lekima Nalaukai
EC102
Semester I, 2016
Tutorial 7 Suggested Solutions
Part A: MULTIPLE CHOICES. Choose the one alternative that best completes the statement or
answers t
Principles of Microeconomics I
Lekima Nalaukai
EC102
Semester I, 2016
Tutorial 7 Questions
Part A: MULTIPLE CHOICES. Choose the one alternative that best completes the statement or
answers the questio
Principles of Microeconomics I
Lekima Nalaukai
EC102
Semester I, 2016
Tutorial 8 Suggested Solutions
Part A: MULTIPLE CHOICES. Choose the one alternative that best completes the statement or
answers t
Principles of Microeconomics I
Lekima Nalaukai
EC102
Semester I, 2016
Tutorial 8 Questions
Part A: MULTIPLE CHOICES. Choose the one alternative that best completes the statement or
answers the questio
Principles of Microeconomics I
Lekima Nalaukai
EC102
Semester I, 2016
Tutorial 9 Suggested Solutions
Part A: MULTIPLE CHOICES. Choose the one alternative that best completes the statement or
answers t
Principles of Microeconomics I
Lekima Nalaukai
EC102
Semester I, 2015
Tutorial 4 Questions
1. Why do we need methods of allocating scarce resources?
Because resources are scare, it is not possible to
Principles of Microeconomics I
Lekima Nalaukai
EC102
Semester I, 2015
Tutorial 3 Suggested Solutions
1. Define the price elasticity of demand and show how it is calculated.
The price elasticity of dem