Microeconomics : Tutor 1

Please answer all questions.

1. Define economics?

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2.  Explain each of the economy's problems below.

i.            Scarcity

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ii.        Choice

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iii.            Opportunity cost
 

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3.  Xplain the factors of production.

 

                        i.            ---------------------------

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                        ii.            ---------------------------

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                        iii.            ---------------------------

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4. The following table shows the production possibilities combination of country A that produces two products: CDs and TVs.

Production	combinations
	A	B	C	D	E
CD (million)	0	5	10	15	20
TV (million)	20	18	15	6	0

a.       Based on the table above draw the production possibilities curve for country A.

b.        Calculate the opportunity cost

            i.         Of producing 5 million of CDs

            ii.       Of producing 15 million of CDs

            iii.    When the production of CDs increases from 10 million to 20 million.

c.        Country A wishes to produce 25 million CDs and 30 million units of TVs. 

           i.            What is the implication? Suggest two (2) ways in which this production combination can be achieved.

--- Goods Luck ---