Slope of Demand Curve - Techniques of Analysis - Past Exam, Exams for Economics. Guru Ghasidas University

Economics

Description: Slope of Demand Curve, Value of Intercept, National Output, Cobb-Douglas Production Function, Breakeven Quantity, Disposable Income, Marginal Propensity to Consume. I invite all economics student to visit my files and find different subject's past exam paper. Correct name of subject is given in file title.
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Ollscoil na hÉireann, Gaillimh
GX_____
National University of Ireland, Galway
Semester 1 Examinations 2008/2009
Exam Code(s)
2BA5
Exam(s)
2nd B.A. (Economic & Social Studies)
Module Code(s)
EC222
Module(s)
Techniques of Analysis
Paper No.
1
Repeat Paper
External Examiner(s)
Professor Robert Wright
Internal Examiner(s)
Professor Eamon O’Shea
Mr. Stephen McNena
Instructions:
There are two sections in this exam. Please answer any 6
questions from section A and 6 questions from section B.
Duration
No. of Pages
Department(s)
Course Co-ordinator(s)
Requirements:
MCQ
No
Handout
Handout of formulae to be distributed at St. Angela’s
College, Sligo
Statistical Tables
Yes, to be distributed at St. Angela’s College, Sligo
Graph Paper
Yes, if students request it
Log Graph Paper
No
Other Material
No
SECTION A MATHS
Answer any 6 of the 8 questions. 15 minutes per question.
1. (a) Consider the demand function represented by the equation: Qd = 50 – 5P
(i) Express Total Revenue (TR) as a function of Qd.
(ii) What is the slope of the demand curve? What is the value of its intercept?
(iii) Sketch the demand curve.
(iv) At P = 6, calculate the quantity and the total revenue.
(b) Consider the following production function: Y = A f (K, L) = 10AK0.5L0.5
where Y is national output, A is technological knowledge, K is the capital stock,
and L is labour.
Transform this Cobb-Douglas production function into a linear model using
logarithms.
2. (a) A firm that makes paint sells their product for 7. Their cost function is
represented by the equation: TC = 200 + 5Q.
(i) Calculate the breakeven quantity.
(ii) Determine the Total Revenue, Fixed Cost, Variable Cost and Total Costs.
(iii) Sketch the Total Cost and Total Revenue curves.
(b) Consider the following demand and supply equations:
Demand: P = 100 – 3Q
Supply: P = 10 + 2Q
(i) Solve for the equilibrium price and quantity.
(ii) What are the slopes of the two curves?
3. Consider an open economy described by the following equations:
C = 300 + 0.9Yd Govt spending = 600
I (autonomous) = 400 Tax rate = 20% of incomes
Exports = 800 Imports = 27.5% of disposable income
Note that C, Y and M are endogenous, and I, G, t and X are exogenous constants.
(a) Solve for the equilibrium national income, Y.
(b) Then calculate disposable income, consumption and imports.
(c) Determine the Marginal Propensity to Consume and the Marginal Propensity to
Save.
(d) Calculate the expenditure multiplier.
(e) If an injection of extra autonomous expenditure causes national income to rise by
400, calculate the size of the extra expenditure.
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