Ql. Imagine that you are in charge of organising the logistics of transporting refugees from the Ukrainian border into longer term accommodation in the European Union. Guesstimate the number of vehicles that will be required to transport the refugees. [10 marks]
Q2. Explain (using graphs) the effect of a price ceiling in a competitive market. In which cases do you expect a price ceiling to be more or less desirable (from a policy maker’s perspective)? [10 marks]
Q3. Hawk-dove and prisoners’ dilemma.
a) Write down a payoff matrix for the one-shot versions of a hawk-dove game and a prisoners’ dilemma. [3 marks]
b) In what ways are these two one-shot games similar? In what ways are they different? [4 marks]
c) How will these game differ if the moves are made sequentially? Write out the game trees. [3 marks]
Q4. If you know what is happening to the marginal product, what can you infer about the average product? Illustrate your answer with at least one diagram. [10 marks]
Q5. Suppose that a firm has production function:
Q(K,L) = 2 L2 + K2
a) If the price of labour is 12 and the price of capital is 5 what is the long-run average cost and marginal cost curve? [5 marks]
b) Derive the short-run average total cost and marginal cost curve if K = 4. [5 marks]
Q6. Briefly answer each of the following and illustrate your answer with a (short!) example.
a) What are four of the economic factors that give rise to monopoly? [4 marks]
b) From an economist’s (or a policy maker’s) perspective, what are good and bad ways to tax monopolies, and under what conditions are your assertions true? [6 marks]
Imagine that you are in charge of organising the logistics of transporting refugees from the Ukrainian border into longer term accommodation in the European Union. Guesstimate the number of vehicles that will be required to transport the refugees. [10 marks] Q2. Explain (using graphs) the effect of a price ceiling in a competitive market. In which cases do you expect a price ceiling to be more or less desirable (from a policy maker’s perspective)? [10 marks]
