ECO101 – Microeconomics
Total Weight: The assignment is worth 40% of the total unit weight.
1. Students are required to cover all stated requirements.
2. Your answer must be both uploaded to Moodle in word
file and handed over a printed copy.
3. You need to support your answers with appropriate
Harvard style references where necessary.
4. Include a title/cover page containing the subject title and
code and the name, student id numbers.
5. Please save the document as
ECO101AT1_first name_Surename_Student Number
Please Answer The Following Four Ture/False Discuss
1. Consider the following scenario:
Australia Company ABC can produce 4 tons of steel per labour hour or
6 tons of sugar. US Company XYZ can produce 2 and 1 respectively.
Assume both countries have 10 hours of labour available.
ABC has an absolute advantage in steel, so should specialise in the production of
steel. As David Ricardo stated both countries will benefit from trade.
2. If we observe an increase in both price and quantity, the demand curve must be upward
3. If the marginal product is falling average product must be falling.
4. If a firm is making zero profits it should leave the industry.