[WASSCE BECE NOVDEC NABPTEX 0547316472]

1. A firm faces the following cost and revenue schedules:

Output(Q) TR TC

0 0 3

1 6 5

2 12 8

3 18 12

4 24 17

5. 30 23

6. 36 30

7 42 38

8 48 47

1.Calculate the profit, marginal revenue, marginal cost and

state what the profit maximizing output will be for the firm.

2. A firm has the following information available to its

managers:

Fixed costs are GHc500, price = GHc 8 and the variable costs are

GHc0.50 per unit. What is the break-even output for this firm?

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(a) With the aid of diagrams, distinguish between change in quantity supplied

and change in supply.

b) Explain any four factors that influence the supply of a commodity

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(a) What is inflation?

(b)I. Explain the following concepts:

demand-pull inflation.

(ii) Cost-push inflation

(b) Explain any four causes of cost-push inflation.

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(a) Define price elasticity of demand

(b) Explain any four determinants of price elasticity of demand.

(c) Distinguish between income elasticity of demand and cross elasticity of demand.

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. (a)What is invisible imports’?

(b) Distinguish between devaluation and depreciation of currency.

(c) Outline any three factors that can make devaluation of currency effective

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(a) Describe any four features of a developing country.

(b) What is economic growth?

(c) Recommend any two measures that can increase the rate of development in your country?