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Introduction to Economics Assignment for DEP first year

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Fahmi Abdi
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26 views3 pages

Introduction to Economics Assignment for DEP first year

Uploaded by

Fahmi Abdi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Assignment for the course 'Introduction to Economics'

I) Solve the problem and show your calculations and Provide concise, and
clear responses for short answer questions.
1. The following table shows the output of a perfectly competitive firm:

Output (units) Total Cost (TC) ($) Total Revenue (TR) ($)
0 50 0
10 120 100
20 180 200
30 250 300
40 330 400

Then,

A. Calculate the marginal cost (MC) and marginal revenue (MR) for each level of output.
B. Identify the profit-maximizing level of output.

2. Explain how the concept of price elasticity of demand applies in determining the pricing
strategy in a monopolistic market.
3. What are the main policy instruments used to address macroeconomic problems like
unemployment and inflation?

II) Select the most appropriate answer for each question.

1. Which of the following is not a characteristic of a perfectly competitive market?


a) Many buyers and sellers
b) Homogeneous products
c) Barriers to entry
d) Price takers
2. What is the primary goal of macroeconomics?
a) Maximizing individual firm profits
b) Analyzing consumer choices
c) Understanding the economy as a whole
d) Examining specific market trends
3. A monopoly arises due to:
a) Perfect competition
b) Product differentiation
c) High barriers to entry
d) Unlimited substitutes
4. The GDP deflator measures:
a) Nominal GDP
b) Real GDP
c) Price changes in goods and services
d) Government expenditure
5. Which of the following is an example of monopolistic competition?
a) Electric utilities
b) Grocery stores
c) Public transportation
d) Airlines
6. What does a business cycle consist of?
a) Fixed prices
b) Economic expansions and contractions
c) Constant employment rates
d) Uniform GDP growth
7. The consumer price index (CPI) is used to:
a) Measure production costs
b) Track inflation over time
c) Determine GDP growth
d) Evaluate trade deficits
8. In an oligopoly, firms are:
a) Price takers
b) Mutually interdependent
c) Highly fragmented
d) Perfectly competitive
9. Nominal GDP is different from Real GDP because:
a) It accounts for inflation
b) It excludes inflation effects
c) It measures long-term growth
d) It measures sectoral contributions
10. A monopolist's marginal revenue is:
a) Equal to price
b) Higher than price
c) Less than price
d) Not measurable
11. The primary function of fiscal policy is to:
a) Control money supply
b) Stabilize economic fluctuations
c) Increase foreign trade
d) Manage monopolies
12. The defining feature of a mixed economy is:
a) Total government control
b) Coexistence of private and public sectors
c) Absence of private property
d) High inequality
13. Which of the following represents structural unemployment?
a) Seasonal layoffs
b) Job loss due to technological changes
c) Short-term job searching
d) Fluctuations in economic activity
14. What is a key assumption of the perfect competition model?
a) Firms maximize revenue
b) Entry and exit of firms are unrestricted
c) Products are heavily differentiated
d) Consumers have limited information
15. Inflation is best defined as:
a) A sustained increase in the general price level
b) A temporary rise in specific product prices
c) A decrease in purchasing power of the currency
d) Both a and c

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