👑Microeconomics and Consumer Behavior  Essays

Explain, with examples, the difference between a merit good and a public good.

Assess how the idea of rationality is used in the indifference curve
theory of consumer behaviour.

Explain how a production possibility curve can be used to demonstrate scarcity, choice and opportunity cost.

Explain the economic problem and why it is always likely to exist.

Explain why public goods would not be supplied in a market economic system.

Analyse why the children of the rich tend to become rich adults.

With the aid of a diagram, explain the consequences for consumers and producers of introducing a minimum price in the market for a product. [8]

Consumers in Uruguay are eating more processed foods. Factors of production, including enterprise, have responded to this change. Firms in the processed food industry have become more capital-intensive. All of Uruguay’s industries were affected by the rise in its inflation rate, from 6.2% in 2017 to 7.7% in 2018

Analyse why a firm may become more capital-intensive (6 Marks)

Discuss whether or not small firms are more likely to go out of business than large firms.

Identify objectives of private sector firms.

Analyse how advances in technology could affect firms’ profits.

Analyse how an increase in the price of milk may affect the revenue earned by milk producers and soft drinks producers.