SECTION A- SHORT ANSWER QUESTIONS

1. Why study microeconomics?

2. Scarcity forces societies to confront critical issues. Identify these issues and how societies are addressing them.

3. "Microeconomists usually assume people are motivated by material self-interest". Discuss.

4. A central objective of microeconomics is to address factual questions which is testable. However, it does address questions that involve value judgement. Differentiate in the type of questions positive and normative economics are concerned.

5. "Economics is social science". Discuss

6. Scientific method requires us to test our theories by confronting them with data. Identify sources of categories of economic data.

SECTION B: CALCULATIONS

1. Differentiate the following functions:

Y = 210

Y = 1/ 502

Y = X7

Y = X-3

Y = X1/2

Y = 6X

Y = X

Y = 6X7

Y = -2 X

Y = 5x2 + 3X

Y = 10X-5 + 2X -30

2. Draw the following graphs:

Y= 4x+2

Y= x2+ 4x+4

3. Solve for P and Y

Y= 20P-5

Y= 4P+2