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ECC1000 - Principles of microeconomics - S1 2025

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The following figure depicts the MPC and MSC of the robot factory production. The robot market is competitive and the market price is $340. Instead of a Pigouvian tax, the government is now considering implementing an enforced compensation from the factory to the nurses for the costs imposed. Based on this information, which one of the following statements is correct?

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A factory is situated next to a dormitory for nurses who work night shifts. The factory produces 120 units of humanoid robots a day. The production process is rather noisy, and the nurses often complain that their sleep is disturbed. The following graph depicts the MPC and MSC of the robot factory production. The robot market is competitive and the market price is $340. Based on this information, which one of the following statements is correct?

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The following figure depicts the MPC and MSC of the robot factory production. The robot market is competitive and the market price is $340. Instead of a Pigouvian tax, the government is now considering implementing an enforced compensation from the factory to the nurses for the costs imposed. Based on this information, which one of the following statements is correct?

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A factory is situated next to a dormitory for nurses who work night shifts. The factory produces 120 units of humanoid robots a day. The production process is rather noisy, and the nurses often complain that their sleep is disturbed. The following graph depicts the MPC and MSC of the robot factory production. The robot market is competitive and the market price is $340. Based on this information, which one of the following statements is correct?

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Marco’s

aunt is retiring.  To manage her income,

she purchased an annuity that pays her $2000 every year for the next three

years.  What is the fair price of this

annuity if the interest rate is 10%?

Enter a number with two decimal places, with no special characters like % or dollar signs, and no letters. For example, if the answer is $8.127, then enter 8.13; if the answer is $8, then enter 8.00. Do not enter any space before or after the number.

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Julia had to borrow $2000 at a rate of 12% for one year to

buy a new car.  She heard that the

Reserve Bank may decrease the interest rate, so the rate on her loan would

decrease to 10%.

If her degree of impatience (ρ) is 0.12, can

Julia consume more or less when the interest rate decreases to 10%?  Please insert 1 for more and 2 for less.

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Julia had to borrow $2000 at a rate of 12% for one year to

buy a new car.  She heard that the

Reserve Bank may decrease the interest rate, so the rate on her loan would

decrease to 10%.

If the rate decreases to 10% after six months,

how much interest does she pay in total over the whole year? Assume the interest is paid annually.

Enter a whole number only, with no special characters like % or dollar signs, and no letters. For example, if the answer is 8127.25, then enter 8127; if the answer is -81272, then enter -81272. Do not enter any space before or after the number, and do not include any thousands separator.

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Julia had to borrow $2000 at a rate of 12% for one year to

buy a new car.  She heard that the

Reserve Bank may decrease the interest rate, so the rate on her loan would

decrease to 10%.

How much does she have to repay at the end of

the year at the rate of 12%?

Enter a whole number only, with no special characters like % or dollar signs, and no letters. For example, if the answer is 8127.25, then enter 8127; if the answer is -81272, then enter -81272. Do not enter any space before or after the number, and do not include any thousands separator.

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Marco

invests $100 in a great venture that delivers a return of 60% per year.  The catch is that he must commit to a three-year

investment.  Compute Marco’s net return

after three years.

Enter a number with two decimal places, with no special characters like % or dollar signs, and no letters. For example, if the answer is $8.127, then enter 8.13; if the answer is $8, then enter 8.00. Do not enter any space before or after the number.

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Julia

needs to borrow some money to buy a new computer.  Currently the rate is 12%, but she can

reasonably expect it to drop to 10%. 

Which two statements are true?

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