NATIONAL OPEN UNIVERSITY OF NIGERIA
14/16 AHMADU BELLO WAY, VICTORIA ISLAND, LAGOS
SCHOOL OF SCIENCE AND TECHNOLOGY
MARCH/APRIL 2014 EXAMINATION
COURSE CODE: AEM751
COURSE TITLE: MICROECONOMICS
TIME ALLOWED: 2HOURS
INSTRUCTION: ANSWER ONLY 4 QUESTIONS
1. a. Define production function.
b. State the law of diminishing returns.
c. . Define the marginal rate of product transformation.
d. What do you understand by marginal rate of technical substitution?
2. a. Distinguish between market period and the short run period of a firm.
b. At what level of output is the long run equilibrium of the industry attained?
c. What is price discrimination?
d. Define the short run equilibrium of level output for a monopolistic competitor.
3. a. Outline the characteristics of an indifference curve?
b. Define consumer surplus.
c. What is subsidy?
d. What is the effect of subsidy on consumer surplus?
4. a. Distinguish between individual and market supply curve.
b. Define equilibrium price and equilibrium quantity.
c. What is the effect of change in demand on the market equilibrium?
d. What is the effect of change in supply on the market equilibrium?
5. a.What is a Productive Resource?
b. Explain briefly the various types of productive resource.
c. Expain the importance of a “Model” in economic analysis?
6. a. Define the following short cost components:
i. Total Cost;
ii. Total Fixed Cost;
iii. Total Variable Cost;
iv. Isorevenue line; and
v. Production possibility curve;
b. What do you understand by “Market Structure”?
c. Differentiate between monopoly and perfect competition
For the 2015 – till date past questions for this course CLICK HERE
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