Regulations:
- This assignment is an individual assignment. Students are encouraged to use their own words.
- Students must follow Saudi Electronic University academic writing standards and APA style guidelines.
- Support your submission with course material concepts, principles, and theories from the textbook, along with at least two scholarly, peer-reviewed journal articles.
- A mark of zero is awarded for any submission that includes copying from other resources without proper referencing it.
- It is strongly encouraged that the student submits his/her assignment into the Safe Assignment Originality Check before uploading it on the Blackboard.
- Read the assignment guidelines earlier sent to your email IDs.
An Overview of Assignment submission time & grades:
| Type of Assignment | Posting date | Due date | Marks | Grace period* |
| Critical Thinking | 11/07/2023 | 23/07/2023 | 30 | 3 days |
* Grace Period: with an accepted excuse (accepted by the instructor) with deduction of 10% for late submission
(CRITICAL THINKING-1 )
Q 1. “Economics is the science of choices if there are scarce resources.” examine the statement critically with the help of suitable examples. (7.5 Marks)
Q 2. Explain the concept of the production possibilities curve (PPC). How does PPC explain the concept of scarcity and opportunity cost? Provide a diagram showing the inefficient or underemployed resources in a hypothetical economy. (7.5 Marks)
Q 3. “Rationale people respond to the incentives”. Consider a scenario and critically examine the statement. What is the real-nominal principle? Take an example and explain. (7.5 Marks)
Q 4. Explain the law of demand and take a product of your choice to prepare a market demand schedule and market demand curve with some hypothetical numbers. Also, explain the four non-price determinants of demand. (7.5 Marks)
Microeconomics Assignment 2
Instructions:
- This assignment is an individual assignment. Students are encouraged to use their own words.
- Students must follow university academic writing standards and APA style guidelines.
- Support your submission with course material concepts, principles, and theories from the textbook, along with at least two scholarly, peer-reviewed journal articles.
- A mark of zero is awarded for any submission that includes copying from other resources without proper referencing it.
- It is strongly encouraged that the student submits his/her assignment into the Safe Assignment Originality Check before uploading it on the Blackboard.
- Read the assignment guidelines earlier sent to your email IDs.
An Overview of Assignment submission time & grades:
| Type of Assignment | Posting date | Due date | Marks |
| Critical Thinking | 20/07/2023 | 02/08/2023 | 30 |
(CRITICAL THINKING-2 )
Q1. Suppose you are employed as an economist by a firm that operates in a perfectly competitive market and produces Jackets. The firm is operating in the short run. The price of the jacket is $9, the wage for each worker is $24, and each jacket requires $1 worth of material. The following table shows the relationship between the number of workers and the output of Jackets. [7.5 Marks]
| Workers | 10 | 11 | 12 | 13 | 14 | 15 |
| Output | 5 | 29 | 41 | 47 | 50 | 52 |
| Labor cost | ||||||
| Material cost | ||||||
| Fixed cost | $2 | $2 | $2 | $2 | $2 | $2 |
| Total cost | ||||||
| Marginal cost | – | 2 | 3 | 5 | 9 | 13 |
- Calculate the missing values in the table given.
- Use the concept of marginal principle and advice the manufacturer about the number of jackets he should produce to maximize his profit.
Q2. What is the price elasticity of demand? How is it different from Income elasticity of demand? Take an example and explain how the concept of elasticity of demand and supply helps the market stakeholders. [7.5 Marks]
Q3: Explain the following terms with suitable examples. [7.5 Marks]
- a) Constant returns to scale
- b) Economies of Scale
- c) Minimum efficient scale
- d) Diseconomies scale
Q 4:
- a) Can Indivisible input factors affect the production cost? Take an example and discuss [4 Marks]
- b) How does marginal cost affect the average cost? Present the relation of marginal cost and average cost with the help of a graph. [3.5 Marks]