BBD1033 - Microeconomics
Tutorial 1
1. Why an economist is regarded as a scientist?
2. List and briefly explain the FOUR (4) principles of individual decision making.
Lettuce
(bunches)
3. Use the graph below to answer the following questions.
Carrot (bunches)
a) If Yousuf is currently growing 80 bunches of lettuce per period, how many
carrot bunches is she growing? Assume that resources are fully utilized.
b) What is the opportunity cost of one bunch of carrot?
c) What is the opportunity cost of one bunch of lettuce?
d) If Yousuf is currently producing 30 bunches of carrots, what is the opportunity
cost of producing another 20 bunches of carrots?
e) Is it possible for Yousuf to produce 120 bunches of lettuce and 30 bunches
of carrots?
f) If Yousuf is producing 60 bunches of carrots and 30 bunches of lettuces, is
he fully utilizing her resources?
g) Is the opportunity cost of this PPF constant?
4. A point on the production possibility frontier represents:
A. Total efficiency
B. Allocative efficiency
C. An unattainable combination of goods
D. Productive efficiency
E. Underemployment of resources
5. Identify whether the following items are factors of production. If yes, identify which
type of factor they are (land, labour, capital, entrepreneurship):
a) Oil from Miri, Sarawak
b) A bottle of perfume
c) A tractor
d) The knowledge to design web sites
e) Coal
f) The ability to hammer nails
g) A drill for wells
h) Contracting business to build homes
i) An umbrella