Exam Example

INSTRUCTIONS SHEET 1. Please read the exam instructions and question paper carefully and write your answers in the examination answer booklet. 2. Answer all the short answer questions in Part A. Part A is worth 30 marks. 3. Answer two (2) questions from part B, out of the choices provided. Part B is worth 30 marks. 4. Write clearly, use headings and subheadings where appropriate, draw neat graphs and provide clear explanations. Good luck with the examination. PART A 30 MARKS Answer ALL questions Each question is worth 5 marks (6 x 5 = 30 marks) Question 1 (5 marks) (a) Draw a diagram with appropriate labels to show the effect on the demand for mobile phones of a promotional discount that decrease the price of mobile phones car chargers. State your assumptions and explain your model. (b) Draw a diagram with appropriate labels to show the effect on the demand for second hand (15-20 years old) cars of an increase in income. State your assumptions and explain your model. Question 2 (5 marks) (a) Consider the following supply and demand schedule: Price | Supply | Demand | $180 | 300 | 3,000 | $360 | 900 | 2,700 | $540 | 1,500 | 2,400 | $720 | 2,100 | 2,100 | $900 | 2,700 | 1,800 | $1,080 | 3,300 | 1,500 | $1,260 | 3,900 | 1,200 | (i) Sketch the market supply and demand curve in a diagram using appropriate labels. (ii) Show equilibrium quantity and price. Question 2 (cont) (b) The following information shows the labour and output data for a firm. Labour | Output | 0 | 0 | 1 | 20 | 2 | 45 | 3 | 80 | 4 | 100 | 5 | 110 |

(i) If product price is fixed at $6, what is the MRP of the second worker? (ii) Calculate the Total Revenue that four (4) workers create if the price per one unit of product is $20. (iii) Calculate the wage for the third worker if the price per one unit of product is $15. Question 3