1.

Revision Reading Guide and Sample Short-Answer Questions Topic Markets in Action Chapter 4 6 Production Pages 81-91 131-141 145-146 Exhibit 4.1 4.2 6.4 Sample Short-Answer Questions Questions 1 & 4 P.86 Question 4 p.152 Question 7 & 8 on p.183 Perfect Competition 7 158-169 7.2 7.4 7.6 7.7 Using the "marginal revenue equals marginal cost method" explain whether a firm facing the following costs is maximising profits. Should the firm increase or decrease output, or leave it unchanged? Q=2000 MR=$10 MC=$5. Question 2, 4 & 8 p. 205-206 Question 2 & 9 p.229-230 Describe the key characteristics of oligopoly and the implications of this for the nature of competition we expect to observe in an oligopoly market. Assume that firms in an oligopoly market agree to set high prices. Explain why cheating on this agreement might initially be beneficial for a single firm, but could eventually lead to lower profits for all firms. Use one of the models of oligopoly to illustrate your answer. The National Economy Business Cycles and Economic Growth Inflation and Unemployment Macroeconomic Policy: Monetary Policy Macroeconomic Policy: Fiscal Policy 11 12 13 16 17 254-268 283-294 305-329 406-414 420-422 433-452 16.14 17.1, 17.4 12.1 12.5 Question 2 & 13 p. 279-280 Questions 1 to 4 p.303 Questions 5 to 7 p.335 Question 7 & 8 p.429 Questions 2, 4, 6, 18 and 19 p.461

Monopoly

187-197

Monopolistic Competition & Oligopoly

210-227

9.4 9.6 9.7

2. Exam Guide Students will have an opportunity to choose from a number of questions, providing an opportunity to focus on and demonstrate your understanding of key concepts and models that you have best understood. The exam has two sections each focussing on different sections of the curriculum Microeconomics and Macroeconomics. Sections Section A: Microeconomics Section B: Macroeconomics Number of Questions Candidates are to answer any two (2) of four (4) questions Candidates are to answer any four(4) of six (6) questions Percentage of Assessment 20% (10 marks each question) 40% (10 marks each question)

Note that short-answer questions are quite specific and require you to demonstrate an understanding of a particular concept or model, or an application of these to a case or scenario. In answering these questions, students are advised to be concise and address the question directly. That is, ensure that the answer you provide including any definitions, diagrams or numerical examples are used to illustrate or support your answer to the question. Take time to structure your answer so that it flows in a logical and sequential order. This could, for example, begin with a brief introductory statement (one sentence or paragraph) answering the question directly, followed by a more detailed answer using a diagram or numerical illustration to demonstrate your answer. The sample short answer questions provided above are typical of the sorts of questions you can expect.