Microeconomic Analysis and Presentation Calculation Assignment

• Understand and apply the tools used in economic decision making.
• Apply market dynamics of supply and demand to concepts of market equilibrium, surpluses and shortages.
• describe the current microeconomic environment within the context of any economy including the Canadian system;

Students must achieve total ratings of at-least 60% of marks to demonstrate written competence.  Any Assignment submission made after Three days from the deadline will not be accepted and will receive a zero mark.

1. Instructions:  For this assignment is descriptive in nature, you will write 100 to 150 words for each question based on the specific topic in your text book.  
2. This assignment has been done with the help of word document.
3. This assignment is worth of 100 % of your Assignment 2.6 % of Final Marks.
4. Grammar: The response uses correct grammar, punctuation and spelling.
5. Citation:The response uses additional reference materials where necessary and includes proper citations. The citations follow APA rules.
6. Formatting:

• Cover page: with your name, the title of the case, course, instructor, and submission date.
• Font style and size: Times New Roman 12 pt. Double spaced.

7. Submission:The last day for submission of this assignment is January 19^th 2020.  Please save the document in a word file and send it in your drop box on DC connect. Save a copy of your file for future clarification.

Question 1 – 25%:

Explain three ways in which we can use microeconomic analysis.

Question 2 – 25%

Table 1.1 shows the maximum possible output combination of bikes and laptops using all resources and the currently available technology in country Alfa.

1. Graph the country’s Production Possibility Frontier. Present bikes on the horizontal axis and laptops on the vertical axis.
2. Is combination D efficient or not? Explain your answer.
3. Add combination F (300, 1000) on your graph and determine if it is efficient or not. Explain your answer.
4. What is the opportunity cost of bikes when we move from B to C? Explain your answer.
5. Suppose that the country invests in a new technology to produce laptops, show the possible change to the PPF.

Question 3 – 25%

Amy and Diane must prepare a presentation for their economics class. As part of their presentation, they must do a series of calculations and prepare 50 PowerPoint slides. It would take Amy 10 hours to do the required calculations and 10 hours to prepare the slides. It would take Diane 12 hours to do the calculations and 20 hours to prepare the slides.

Question 4 – 25%

Suppose that you lend $1,000 to a friend who pays you back $1,100 next year. Suppose that prices that year rose by 8% and the real rate of return in the stock market was 4%. Your friend says that he or she was being more than fair by giving you more than the rate of inflation as a return. What do you think? Use the opportunity cost principle to answer this question.