Engineer
Table 1.0: Answer for the MCQs
Question # 1 2 3 4 5 6 7 8 9 10
Answer b c a c b c e d b b
1). Nihal takes a year off from his job to train for the Asian Games 400 meters event to be held one year later. The annual income from his job is Rs. 600,000. His training costs (coach's fee) amount to Rs. 180,000 and meal expenses amount to another Rs. 200,000. Being a promising athlete, the Ministry of Sports has given nihal a sports scholarship worth Rs. 100,000.¬¬
a) Assuming the meal expenses are for nutritional supplements specially taken during the training. Meal expenses and the coach’s fee are born by Nihal. Opportunity cost involved in Nihal’s decision to take one year off from his job to train for the Asian Games Championships, = Rs. 600,000 + Rs. 180,000 + Rs. 200,000 – Rs. 100,000 = Rs. 880,000
b) Assuming the meal expenses and the coach’s fee are born by Nihal. The opportunity cost to the country of training this athlete equal to the scholarship amount given by the government which is, = Rs. 100,000
2).The table 2.1 depicts the demand and supply schedules for CDs Price (Rs. per CD).
Table 2.1: Demand and Supply Schedules for Price of CD.
Price in Rupees
( per Unit ) Quantity Demanded Quantity Supplied
500 300 100
600 250 150
700 200 200
800 150 250
900 100 300
Figure 2.1 illustrates the demand and supply curves based on data in table 2.1.
Figure 2.1: Demand and Supply Curves for CDs. Source: Author
Equilibrium price per unit = Rs. 700
Equilibrium quantity = 200 CDs If the price of a CD is Rs.600,
Figure 2.2 Restoration of Market Equilibrium from Excess Demand Source: Author
Quantity demanded = 250 CDs
Quantity supplied = 150 CDs.
There is an excess demand of 100 CDs per day and this creates a competition among the buyers to acquire the limited supply in the market. Buyers are willing to buy at a higher price due to the lack of availability. Higher demand will increase the price of the
Question # 1 2 3 4 5 6 7 8 9 10
Answer b c a c b c e d b b
1). Nihal takes a year off from his job to train for the Asian Games 400 meters event to be held one year later. The annual income from his job is Rs. 600,000. His training costs (coach's fee) amount to Rs. 180,000 and meal expenses amount to another Rs. 200,000. Being a promising athlete, the Ministry of Sports has given nihal a sports scholarship worth Rs. 100,000.¬¬
a) Assuming the meal expenses are for nutritional supplements specially taken during the training. Meal expenses and the coach’s fee are born by Nihal. Opportunity cost involved in Nihal’s decision to take one year off from his job to train for the Asian Games Championships, = Rs. 600,000 + Rs. 180,000 + Rs. 200,000 – Rs. 100,000 = Rs. 880,000
b) Assuming the meal expenses and the coach’s fee are born by Nihal. The opportunity cost to the country of training this athlete equal to the scholarship amount given by the government which is, = Rs. 100,000
2).The table 2.1 depicts the demand and supply schedules for CDs Price (Rs. per CD).
Table 2.1: Demand and Supply Schedules for Price of CD.
Price in Rupees
( per Unit ) Quantity Demanded Quantity Supplied
500 300 100
600 250 150
700 200 200
800 150 250
900 100 300
Figure 2.1 illustrates the demand and supply curves based on data in table 2.1.
Figure 2.1: Demand and Supply Curves for CDs. Source: Author
Equilibrium price per unit = Rs. 700
Equilibrium quantity = 200 CDs If the price of a CD is Rs.600,
Figure 2.2 Restoration of Market Equilibrium from Excess Demand Source: Author
Quantity demanded = 250 CDs
Quantity supplied = 150 CDs.
There is an excess demand of 100 CDs per day and this creates a competition among the buyers to acquire the limited supply in the market. Buyers are willing to buy at a higher price due to the lack of availability. Higher demand will increase the price of the