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    Economics Group Assignment

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    shimelis
    This document provides instructions for a group assignment for an Introduction to Economics course at St. Mary's University. It specifies that students must complete the assignment in groups of 6 or fewer and submit it before the December 20th deadline. The assignment contains 10 questions covering topics like demand and supply analysis, costs of production, consumer choice, and macroeconomic indicators.

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    Download as PDF, TXT or read online from Scribd

    Economics Group Assignment

    Uploaded by

    shimelis
    244 views4 pages
    This document provides instructions for a group assignment for an Introduction to Economics course at St. Mary's University. It specifies that students must complete the assignment in groups of 6 or fewer and submit it before the December 20th deadline. The assignment contains 10 questions covering topics like demand and supply analysis, costs of production, consumer choice, and macroeconomic indicators.

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    This document provides instructions for a group assignment for an Introduction to Economics course at St. Mary's University. It specifies that students must complete the assignment in groups of 6 or fewer and submit it before the December 20th deadline. The assignment contains 10 questions covering topics like demand and supply analysis, costs of production, consumer choice, and macroeconomic indicators.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    244 views4 pages

    Economics Group Assignment

    Uploaded by

    shimelis
    This document provides instructions for a group assignment for an Introduction to Economics course at St. Mary's University. It specifies that students must complete the assignment in groups of 6 or fewer and submit it before the December 20th deadline. The assignment contains 10 questions covering topics like demand and supply analysis, costs of production, consumer choice, and macroeconomic indicators.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
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    St.

    Mary’s University

    Faculty of Business

    Department of Economics
    Introduction to Economics Group Assignment

    Name: _______________________________

    ID. No: _______________________________

    Department: __________________________

    Program: Degree

    Instructions:

     This is the only group assignment of this course


     Number of students in one group is not more than 6.
     This assignment is to be completed and submitted to instructor before December 20/2022
    or deadline to submit these assignments will be December 20/2022.
     Any kind of copy is series consequences.
     Do all questions and show all necessary steps and explain it if it is necessary.

    1|Page Compiled by Assefa Belay (MSC in Economics)


    1. Given the Total Utility function (T U) = 150x+40x2- x3, then
    A. Derive marginal utility function and find the value of x at which total utility is maximum.
    2. Suppose the generic demand function of a hypothetical good is given by:
    Qd = 250 + 0.75Y- 0.35P + 0.25Py + 500, where Y is income, Py is price of the related good
    and P is price of the good .Y =1500. P=3, Py =2 then
    A. Find quantity of demand
    B. Calculate price elasticity of demand and interpret your result
    C. Calculate income elasticity of demand and identify the types of goods.
    D. Calculate cross price elasticity of demand and identify the nature of the good
    3.Assum that the total expenditure of a consumer on two goods X and Y is birr 2000 and
    prices of good X and Y are birr 50 and birr 40 respectively .Then formulate his budget
    equation and sketch the graph.
    4.Suppose individual demand and supply function for acmmodity are given respectively as
    Qd =100-20P and Qs =40P-120, where Q refers to the quntity and p refers to price . If there
    are 20 buyers and 10 suppliers of the commodity ,then
    A. Find market demand and market supply functions.
    B. Find equilibrium quantity of product .
    C.What is equlibrium price of a product ?
    5. Complete the following table by finding Marginal Product & Average Product.
    Labor Output Marginal Average product
    product
    0 0

    1 2

    2 6

    3 12

    4 16

    5 21

    2|Page Compiled by Assefa Belay (MSC in Economics)


    6. Complete the following table by finding , , , , ,
    Out put Fixed Variable Total Average Average Average Marginal
    cost Cost Cost Cost Fixed Variable Cost
    ( ) ( ) ( ) ( ) Cost Cost
    0 100 0

    1 100 120

    2 100 160

    3 100 220

    4 100 280

    5 100 360

    6 100 420

    7 100 520

    8 100 600

    9 100 680

    10 100 720

    7. Suppose that, for perfectly competitive firm of marginal cost function is given by:

    MC = Q2-2Q+20, then

    A. Find the equilibrium level of output, if price per unit of a good produced is birr 44.
    B. Find total amount of MC, Total Cost and Total revenue
    C. Find maximum amount of profit
    8. A consumer has 300 birr to spend on two commodities , the first time costs 10 birr and the
    second one cost 15 birr. Suppose that the utility of the consumer be defined by

    U(x,y) =5x0.6 y0.4 where x is the first item and y is second commodity .

    3|Page Compiled by Assefa Belay (MSC in Economics)


    A. How many units of each item should the consumer buy in order to maximize utility?

    B. What is maximum utility of consumer?

    9. Suppose there are two goods x and y in the economy and are traded as
    indicated in the table. The base year is 2008.

    A. Calculate the nominal GDP for each year


    B. Calculate the real GDP for each year.
    C. Which year is there economic growth? Why?
    D. What is the real GDP per capita of 2008, if the total population is 2?
    E. Calculate consumer price index (CPI)
    F. Calculate inflation rate
    10. Suppose a particular consumer has 8 birr to be spent on two goods, A and B. The unit price
    of good A is 2 birr and the unit price of B is 1 birr. The marginal utility (MU) she gets from
    consumption of the goods is given below.

    A) Based on the cardinal analysis, what is the combination of the two goods that gives
    maximum utility to the consumer?
    B) What is the total utility at the utility maximization level?

    4|Page Compiled by Assefa Belay (MSC in Economics)

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