ECO402

Total Marks 30 Starting Date Wednesday, November 20, 2013 Closing Date Friday, November 22, 2013 Status Open Question/Description GDB Question:   The Case: Libya’s economy primarily depends on petroleum sector, which accounts for approximately 95% of export earnings, 87% of government receipts and 70% of GDP. This country is one of the committed members of OPEC (Organization of Petroleum Exporting …

SEMESTER SPRING 2013 MICROECONOMICS (ECO402) ASSIGNMENT NO. 01 DUE DATE: 8TH MAY, 2013  MARKS: 20 ASSIGNMENT: The Case: Thailand is the world second largest exporter of rice. Rice production in Thailand represents a significant portion of the labor force of Thailand’s economy. It is a necessity good for the people of this country. It is also used in the production of …

SEMESTER FALL 2012 MICROECONOMICS (ECO402) ASSIGNMENT NO. 02 DUE DATE: 28TH JANUARY 2013 MARKS: 20 ASSIGNMENT The Case: Solar energy is becoming more popular with the passage of time. Due to increasing demand of power, solar energy has become an active alternative in the power sector. Chinese company “Suntech Power” is the largest producer of solar products. Suppose, being the largest producer in …

Handicrafts of Pakistan are famous for their uniqueness, assortment and quality standards and therefore have established its status within and outside the country. From last few years, handicraft business has flourished remarkably due to high demand of handicraft products like floor coverings, antiques, decorative items, furniture, garments, home furnishing etc. These products can be made from wood and also from …

Solution: Part A Solution of question(a): Domestic industry for MP3 players is in equilibrium where quantity demanded equals quantity supplied, i.e. Qd=QS. By equating both equations, we get; 1900 – 7P = 1300 + 17P 17P + 7P = 1900 – 1300 24P = 600 P = 600/24 P = 25 Solution of question(b): At price 20, quantity of MP3 …

Which of the following is NOT true about price floors? Select correct option: Consumer surplus is always lower than it would be in the competitive equilibrium. Producer surplus could be lower, higher, or the same as it would be in competitive equilibrium. Producer surplus could be negative as the result of a price floor. Producers will often respond to a …

The Case: Agriculture is the backbone of a number of economies, like Pakistan, India, China and others. The expansion of fertilizer’s production, mechanization and pesticides is considered as a significant factor to enhance the growth of agricultural sector in these countries. Here we will take the case of Pakistan. Pakistan is a major exporter of rice and cotton. Suppose Pakistan …

The case: New Zealand is the world’s largest wool producer and one of the biggest exporters of wool in the international market. In recent years, the wool industry has continued to contract due to unfavorable market conditions. Fluctuations of wool prices in the international market strongly influence the economy of New Zealand because wool is a main exporting product of New Zealand. It’s just …