NATIONAL OPEN UNIVERSITY OF NIGERIA AEM 751 MICROECONOMICS
14/16, Ahmadu Bello Way, Victoria Island
SCHOOL OF SCIENCE AND TECHNOLOGY October, 2013 Examination
Course Code: AEM 751 TIME: 2 HOURS Course Title: MICROECONOMICS
INSTRUCTION: ANSWER ONLY 4 QUESTIONS
- 1. a. State the law of demand.
- b. Define the following short cost components:
- Total Cost;
- Total Fixed Cost;
iii. Total Variable Cost;
- Isorevenue line; and
- v. Production possibility curve;
- What is market structure?
- 2. a. Define production function.
- b. State the law of diminishing return
- Define the marginal rate of product transformation.
- d. What do you understand by marginal rate of technical substitution?
- 3. a. Distinguish between market period and the short run period of a firm.
- b. At what level of output is the long run equilibrium of the industry attained?
- What is price discrimination?
- d. Define the short run equilibrium of level output for a monopolistic competito
- 4. a. Outline the characteristics of an indifference curve?
- b. Define consumer surplus. c. What is subsidy?
- d. What is the effect of subsidy on consumer surplus?
- 5. a. Distinguish between individual and market supply curve. b. Define equilibrium price and equilibrium quantity.
- What is the effect of change in demand on the market equilibrium?
- d. What is the effect of change in supply on the market equilibrium?
- 6. a. Define Resources?
- b. What is a Productive Resource?
- List the various types of productive resource.
- d. What is the purpose of Model in economic analysis?