Principles of Microeconomics (ECNC2101)
Higher Institute of Commerce and Management (HICM)
Semester: First Semester
Level: 200
Year: 2019
THE UNIVERSITY OF BAMENDA
Higher Institute of Commerce and Management (HICM)
ECNC101: Principles of Microeconomics level 1.
Examiners: LAISIN INNOCENT / KIFEM FRANKLIN
First Semester Exams 2019, TIME ALLOWED: 3 hours
INSTRUCTIONS: Answer all Questionsin an orderly manner.
Course Status: C
QUESTION ONE (10 marks)
Write TRUE for correct statement and FALSE for the wrong one. Do not copy the statements.
i.
Product pricing, factor pricing and theory of economic welfare are the scope of
microeconomics.
ii.
In case of Giffen goods and Veblen goods, law of demand does not work.
iii.
Bandwagon effect is an example of negative network externality.
iv.
Higher isoquants yield higher levels of output to the producer because they represent
ra
_ a higher combination of one or both factors.
v.
In Cobb-Douglas production function, the sum of its exponent measures returns to scale.
vi.
A rational producer will always operate in diminishing returns (stage II).
vii.
Ridge lines are loci of points on isoquants where the marginal product of the factor is greater
than zero.
viii.
According to Paul A. Samuelson (1938), when a consumer buys a commodity he reveals his
preference for it.
ix.
The principle of returns to scale is the economic principle used to explain what happens to
production with all inputs changing.
x.
Sunk cost is the expenditure that has been incurred and cannot be recovered
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