Introduction to Microeconomic Theory ECN 1115 Test Number II by University of Zambia - School of Humanities and Social Sciences - Department of Economics

Description

This Test Number II document from the University of Zambia's Department of Economics assesses core microeconomic principles for the course ECN 1115: Introduction to Microeconomic Theory. The test includes a practical problem requiring the calculation of total revenue for mangoes at two different price points (K3 and K5) based on a given demand curve graph, analysis of whether the demand is elastic or inelastic based on the revenue results, and computation of the arc elasticity of demand between two specified points. A second problem focuses on production analysis at a brick-making factory, where students must complete a table by calculating the marginal return to labour for each additional worker, and derive fixed, variable, and total costs given a lease cost (K50) and daily wage (K80 per worker). The question further requires an explanation of whether the production process exhibits increasing returns to scale. This examination is essential for university students pursuing degrees or diplomas in economics to apply theoretical concepts of demand elasticity, cost structures, and production returns to practical scenarios. To evaluate your analytical skills in these areas, download and complete the test.