Swinburne University of Technology
Higher Education Division
Term 1, 2013
12.5% of Total Unit Marks (to be marked out of 20)
Time Allowed: 1 hour
Student ID: ______________________________________
Swinburne University of Technology, Sarawak Campus
Short Answer Questions
There are 4 questions in this section. Each question is worth 10 marks. ANSWER ANY TWO QUESTIONS (2x10=20 marks)
Question 1 (2+4+2+2 =10 marks)
a. Define Production Possibilities Curve.
b. The figure below represents the production possibility frontier for the small country of Bistro, which produces only agricultural products (measured in thousands of tons) and manufacturing products (measured in thousands of pounds):
Does the production possibility frontier demonstrate the law of increasing opportunity cost? How can you tell? c. What happens to a country’s production possibility frontier if it experiences a natural disaster such as a hurricane or an earthquake? Explain. d. Why are the opportunity costs of an MBA graduate course greater than the opportunity cost of a B. Bus or B.Com undergraduate course? MBA student is qualified enough to work and earn a salary because he/she Has finished her undergrad. Bcom student has fewer chances to get a job because he/she is still doing undergraduate. The opportunity cost being money lost if MBA student went to work.
Question 2 (2+3+5 = 10 marks)
a. What is the difference between a change in demand and a change in quantity demanded?
b. For each of the following markets, indicate whether the stated change causes a shift of the supply curve, a shift of the demand curve, a movement along the supply curve and /or a movement along the demand curve. i) The housing market: consumers’ income increases ii)...
Please join StudyMode to read the full document