1、SECTION A: Multiple choice questions. Students should attempt to find the best answer for each question. Each question is worth two mark (2). Section B: Short answers. Students should attempt to answer any three (3) from the following five (5) short answer questions.
2、 Each short answer question is worth fifteen (15) marks.II. Term definition (2 points per each. 20 points in total)III. Discussion (4 points per each. 20 points in total)Chapter1Whatistheopportunitycostofseeingamovie?ANW:the opportunity cost of seeing a movie includes
3、the monetary cost of admission plus the time cost of going to the theater and attending the show. The time cost depends on what else you might do with that time; if it's staying home and watching TV, the time cost may be small, but if it's working an extra three hours
4、 at your job, the time cost is the money you could have earned. Whatdoesthe“invisiblehand”ofthemarket-placedo?ANW:The "invisible hand" of the marketplace represents the idea that even though individuals and firms are all acting in their own self-interest, prices and th
5、e marketplace guide them to do what is good for society as a whole. Chapter2Drawandexplainaproductionpossibilitiesfrontierforaneconomythatproducescomputerandcar.Drawandexplainacircularflowforaneconomy57Chapter4The case study presented in the chapter discussedcigarette
6、taxes as a way to reduce smoking. Now thinkabout the markets for other tobacco products such ascigars and chewing tobacco.a.Are these goods substitutes or complements forcigarettes?b.Using a supply-and-demand diagram, show whathappens in the markets for cigars and chew
7、ingtobacco if the tax on cigarettes is increased.c.If policymakers wanted to reduce total tobaccoconsumption, what policies could they combinewith the cigarette taxANS： a. Cigars and chewing tobacco are substitutes for cigarettes, since a higher price for cigarettes wo
8、uld increase the demand for cigars and chewing tobacco. b. An increase in the tax on cigarettes leads to increased d
