ECS1501 May/Jun 2015 exam paper — questions

Every question, by topic

1. Question 1 · What economics is about: scarcity, choice and the economic problem

   Consider five statements about needs, wants and scarcity: (a) wants are absolutely unlimited and can be defined as desires for goods and services; (b) needs are limited and can be defined as life essentials; (c) scarcity is the same as poverty and inequality; (d) time can be regarded as a scarce resource; (e) needs and wants are the same and only the poor are affected by scarcity. Which combination of these statements is/are correct?Show the full questionShow less

2. Question 2 · What economics is about: scarcity, choice and the economic problem

   The diagram shows two production possibility curves for good X (horizontal axis) and good Y (vertical axis): an inner frontier running from point A on the Y-axis to point C on the X-axis, and an outer frontier running from point B (higher on the Y-axis) to the same point C. Point D lies on the inner frontier, point E lies further along near the outer frontier, and point F lies inside both frontiers. Considering only production possibility frontier AC, which statement about output combinations A, C, D, E and F is correct?Show the full questionShow less

3. Question 3 · What economics is about: scarcity, choice and the economic problem

   Referring to the same production possibility diagram, an outward shift of the frontier from AC to BC could be explained by which of the following?Show the full questionShow less

4. Question 4 · What economics is about: scarcity, choice and the economic problem

   Which set of three essential coordinating mechanisms is used to solve the central economic questions?Show the full questionShow less

5. Question 5 · What economics is about: scarcity, choice and the economic problem

   Microeconomics is best described as the branch of economics that studies what?Show the full questionShow less