College of Administrative and Financial Sciences Assignment 1 Course Name: MICROECONOMICS Student’s Name: Course Code: ECON101 Student’s ID Number: Semester: 1st CRN: 12636 Academic Year: 1442-1443 H Release Date: 26th September 2021-Deadline: 09 October, 2021 @23:59pm For Instructor’s Use only Instructor’s Name: Dr. Umme Hani Students’ Grade: Marks Obtained/ 05 Level of Marks: High/Middle/Low PLEASE READ THEM CAREFULLY • • This assignment is an individual assignment. Due date for Assignment 1 is 09/10/2021). • The Assignment must be submitted only in WORD format via allocated folder. • Assignments submitted through email will not be accepted. • Students are advised to make their work clear and well presented. This also includes filling your information on the cover page. • Students must mention question number clearly in their answer. • Late submitted assignments will NOT be entertained. • Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions. • All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism). Submissions without this cover page will NOT be accepted. Question-1 Bill can produce either tables or chairs. Bill can work up to 10 hours a day. His production possibilities are given in the table below: (3 Marks) Tables 0 50 60 70 80 90 • Chairs 200 180 160 140 120 0 Explain production possibilities frontier (PPF) by putting tables on the Horizontal axis and chairs on the vertical axis. What is Bill’s opportunity cost of producing one additional table? • Currently Bill is producing 70 tables and 140 chairs. • Is this allocation of resources efficient? Why? • Show this allocation on the graph and advise Bill how he can be more efficient. Question-2 Explain by applying these concepts with examples. Marks) • Rational people respond to incentives (2 • Role of prices in allocating resources
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