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Assignment Questions (Summer, 2012)
Part A – Microeconomics – Worth 10% of total assessment:
Answer any five (5) of the following questions. Each question is worth 10 marks. Question 1: Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month? Explain your choice. (a) The cost of cocoa (1 mark). (b) Business rates (local taxes).(1 mark) (c) An advertising campaign for a new chocolate bar. (1 mark)………………………………........ (d) The cost of electricity (paid quarterly) for running the mixing machines (1 mark)…………….. (e) Overtime pay (1 mark) (f) The basic minimum wage agreed with the union (workers must be given at least one month’s notice if they are to be laid off) (2 marks). (g) Wear and tear on wrapping machines (1 mark). (h) Depreciation of machines due simply to their age (1 mark). (i) Interest on a mortgage for the factory: the rate of interest rises over the course of the month (1 mark).
Question 2: (a) Complete the following table of costs for a firm. (Note: enter the figures in the MC column between outputs of 0 and 1, 1 and 2, 2 and 3, etc.) (6 marks) Output (Units) | TC ($) | AC ($) | MC ($) | 0 1 2 3 4 5 6 7 8 9 10 | 55 85 110 130 280 610 | — 40 42 |
Part A – Microeconomics – Worth 10% of total assessment:
Answer any five (5) of the following questions. Each question is worth 10 marks. Question 1: Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month? Explain your choice. (a) The cost of cocoa (1 mark). (b) Business rates (local taxes).(1 mark) (c) An advertising campaign for a new chocolate bar. (1 mark)………………………………........ (d) The cost of electricity (paid quarterly) for running the mixing machines (1 mark)…………….. (e) Overtime pay (1 mark) (f) The basic minimum wage agreed with the union (workers must be given at least one month’s notice if they are to be laid off) (2 marks). (g) Wear and tear on wrapping machines (1 mark). (h) Depreciation of machines due simply to their age (1 mark). (i) Interest on a mortgage for the factory: the rate of interest rises over the course of the month (1 mark).
Question 2: (a) Complete the following table of costs for a firm. (Note: enter the figures in the MC column between outputs of 0 and 1, 1 and 2, 2 and 3, etc.) (6 marks) Output (Units) | TC ($) | AC ($) | MC ($) | 0 1 2 3 4 5 6 7 8 9 10 | 55 85 110 130 280 610 | — 40 42 |