Question

BACHELOR OF COMMERCE YEAR 1 - ACADEMIC AND ASSESSMENT CALENDAR - DISTANCE 10.1.4 ECONOMICS 1: ASSIGNMENT 1 QUESTION ONE [100] (30) 1.1 Explain how the production possibility frontier can be used to demonstrate economic growth. Use diagrams to motivate your answer! (16) 1.2 Discuss the impact of the following economic events on the equilibrium price and quantity according to the demand and supply model. Use diagrams to motivate your answer 1.2.1 Consumers experience an increase in income 1.22 The prices of inputs increase QUESTION TWO (25) 21 22 List and discuss any three (3) cases of price elasticity of demand. Explain how cross elasticity of demand is used to define goods and services (18) (7) QUESTION THREE (30) 3.1 Define each of the following economic terms as it relates to the theory of the firm 3.1.1 Total product (5) 3.12 Average product (5) 3.1.3 Marginal product (5) 32 Discuss the long-run average cost curve and how it relates to returns to scale (15) QUESTION FOUR (15) 4 Discuss the shape of the demand curve of a monopolistically competitive firm (X 42. Descnbe the profit maximizing position of a perfectly competitive firm in the long run. Use a diagram to motivate your answer. This is a research based assignment and requires evidence of research END OF ECONOMICS 1 ASSIGNMENT 1 REGENT BUSINESS SCHOOL (RBS) - JANUARY 2020

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Answer 1

Answer 1 - The economic growth can be understood as the increase in the value of output in the economy resulting from increased productivity and efficiency. The economic growth puts a positive impact upon the economy improving its capacity in every aspect. This will shift the PPC curve towards right or outward shift. This can be shown by the diagram below -

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