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    Assignment 1: STUDENT NAME: Amole Razak Iddrisu ID NO:01220029D

    Uploaded by

    Idris Razak
    This document contains an economics assignment submitted by a student. It includes 4 questions about macroeconomic and microeconomic topics, rational consumer decision making, production possibility curves, and the impact of technological progress. The student is asked to identify macro vs. micro topics, determine if consumer choices satisfy rational decision making, plot production possibility curves showing full employment, and draw a new curve and discuss opportunity costs after a technological increase in productivity.

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    Assignment 1: STUDENT NAME: Amole Razak Iddrisu ID NO:01220029D

    Uploaded by

    Idris Razak
    32 views4 pages
    This document contains an economics assignment submitted by a student. It includes 4 questions about macroeconomic and microeconomic topics, rational consumer decision making, production possibility curves, and the impact of technological progress. The student is asked to identify macro vs. micro topics, determine if consumer choices satisfy rational decision making, plot production possibility curves showing full employment, and draw a new curve and discuss opportunity costs after a technological increase in productivity.

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    This document contains an economics assignment submitted by a student. It includes 4 questions about macroeconomic and microeconomic topics, rational consumer decision making, production possibility curves, and the impact of technological progress. The student is asked to identify macro vs. micro topics, determine if consumer choices satisfy rational decision making, plot production possibility curves showing full employment, and draw a new curve and discuss opportunity costs after a technological increase in productivity.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    32 views4 pages

    Assignment 1: STUDENT NAME: Amole Razak Iddrisu ID NO:01220029D

    Uploaded by

    Idris Razak
    This document contains an economics assignment submitted by a student. It includes 4 questions about macroeconomic and microeconomic topics, rational consumer decision making, production possibility curves, and the impact of technological progress. The student is asked to identify macro vs. micro topics, determine if consumer choices satisfy rational decision making, plot production possibility curves showing full employment, and draw a new curve and discuss opportunity costs after a technological increase in productivity.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 4

    ASSIGNMENT 1

    STUDENT NAME: Amole Razak Iddrisu


    ID NO:01220029D

    1. Which of the following are macroeconomic topics / issues and which are
    microeconomic ones?

    a. The level of consumer spending ………………Micro……………….Micro /


    Macro
    b. Subsidies paid to farmers ……………Micro………………………….Micro /
    Macro
    c. The level of the UK exports …………Macro……………………….....Micro /
    Macro
    d. The price of DVDs …………………Micro………………………….....Micro /
    Macro
    e. The rate of unemployment …………Macro………………….………..Micro /
    Macro
    f. The average wage rate paid to textile workers … Micro …………….Micro /
    Macro
    g. The total amount spent by UK consumers on clothing and footwear Micro /
    Macro
    h. The amount saved last year by UK households …………Micro……Micro /
    Macro

    2. Economists assume that economic decisions are made rationally. In the case of
    consumers, rational decision making means that:

    a. Consumers will not buy goods which increase their satisfaction by only a
    small amount. True / False

    b. Consumers will attempt to maximize their individual satisfaction for the


    income they earn. True / False

    1
    c. Consumers buy the sorts of goods that the average person buys …..
    True / False

    d. consumers seek to get the best value for money from the goods they buy
    True / False

    3. A country is capable of producing the following combinations of goods and


    services per period of time, assuming that it makes full use of its resources of
    land, labor and capital.
    Goods (units) 100 80 60 40 20 0

    Services (units) 0 50 90 120 140 150

    (a) Draw the production possibility curve for this country on the following diagram.

    Production Possibilities Curve


    160

    140

    120

    100

    80
    Series2
    60

    40

    20

    0
    0 20 40 60 80 100 120

    (b) Is it possible for this country to produce the following combinations of goods and
    services?
    (i) 80 units of goods and 50 units of services ……………Yes………………....Yes/
    No
    (ii) 70 units of goods and 90 units of services ……………No…………………Yes/
    No

    2
    (iii) 40 units of goods and 100 units of services ……………No………………..Yes/
    No

    (c) What is the opportunity cost (in terms of services) of producing 20 extra units of
    goods when this country is initially producing:

    (i) 60 units of goods 150-50 =100 units of


    services……………………………………………………………
    (ii) 20 units of goods 150-120 =30 units of
    services……………………………………………………………

    4. (a). Referring back to question 3, assume now that technological progress allows
    a four-fold increase in the output of goods and double the amount of services for
    any given amount of resources. Assuming that the country’s total amount of
    resources stays the same, fill in the new figures on the following table to show the
    new production possibilities.

    400 320 240 160 80 0


    Goods (units)

    0 100 180 240 280 300


    Services (units)

    (b). Draw the new production possibility curve in the space provided below:

    Economic Growth of the New Production Frontier

    3
    350
    300
    250
    200
    150
    100
    50
    0
    0 50 100 150 200 250 300 350 400 450

    (d) How has this technological progress affected the opportunity cost of a unit of
    goods? (Tick the correct one of the following answers).
    (a) Stays at the same. 
    (b) Doubles 
    (c) Halves 
    (d) Increases four times 
    (e) Decreases four times 

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