College of Administrative and Financial Sciences Assignment 1 Release Date: 26th September 2021-Deadline: 10 October, 2021 @23:59pm Course Name: MICROECONOMICS Student’s Name: Course Code: ECON101 Student’s ID Number: Semester: 1st CRN: Academic Year: 1442-1443 H For Instructor’s Use only Instructor’s Name: Dr. Alam Ahmad Students’ Grade: / 05 Level of Marks: High/Middle/Low PLEASE READ THEM CAREFULLY ❖ This assignment is an individual assignment. ❖ Due date for Assignment 1 is 10/10/2021). ❖ 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 Chairs 0 200 50 180 60 160 70 140 80 120 90 0 1) 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? 2) Currently Bill is producing 70 tables and 120 chairs. a) Is this allocation of resources efficient? Why? b) Show this allocation on the graph and advise Bill how he can be more efficient. Question-2 Explain by applying these concepts with examples. a. Rational people respond to incentives b. Role of prices in allocating resources (2 Marks)
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