NATIONAL OPEN UNIVERSITY OF NIGERIA AEM 751 MICRO ECONOMICS
14-16 AHMADU BELLO WAY, VICTORIA ISLAND LAGOS SCHOOL OF AGRICULTURAL SCIENCES OCTOBER/NOVEMBER 2014 EXAMINATION
COURSE CODE: AEM 751
COURSE TITLE: MICRO ECONOMICS INSTRUCTION: ANSWER ONLY 4 QUESTIONS TIME ALLOWED: 2 HOURS
- a. Define the following short cost components:
- Total Cost (2marks);
- Total Fixed Cost (2marks);
iii. Total Variable Cost (2marks);
- iv. Isorevenue line (2marks); and
- v. Production possibility curve (2marks).
- b. What do you understand by “Market Structure”? (5marks)
- Outline any five characteristics of:
- Monopoly (5marks); and
- Perfect competition. (5marks)
- 2. a. Distinguish between market period and the short run period of a firm. (8marks).
- b. At what level of output is the long run equilibrium of the industry attained? (6marks). c. What is price discrimination? (6marks).
- d. Define the short run equilibrium of level output for a monopolistic competitor. (5marks).
- a.State any four characteristics of an indifference curve? (8marks). b. Define consumer surplus. (4marks)
- What is subsidy? (4marks)
- d. What is the effect of subsidy on consumer surplus? (9marks).
- a. Distinguish between individual and market supply curve.(12marks). b. Define equilibrium price and equilibrium quantity. (8marks).
- What is the effect of change in demand on the market equilibrium? (2 ½ marks)
- d. What is the effect of change in supply on the market equilibrium? (2 ½ marks)
- 5.Define Productive Resources? (3marks)
- b. Mention the different types of Productive Resource (4marks).
- Explain briefly the various types of productive resources. (12marks)
- d. Highlight three importance of a “Model” in economic analysis? (6marks).
- 6. a. What is production function? (5marks).
- b. State the law of diminishing return (5marks).
- What is marginal rate of product transformation? 5marks).
- d. What do you understand by marginal rate of technical substitution? (10marks)