1. The diagram below represents a Monopoly firm in equilibrium. Q1 (a) (i) Copy the diagram into your answer book. Write out each of the six labels in full (other than Q,). (ii) The firm produces Q1 output in equilibrium. Show on your diagram: the price charged for this output. (use label PI) the average cost of producing this output. (use label CI) (b) New firms may wish to enter a monopoly market but they face barriers to entry. (i) State three possible barriers. (ii) Write brief notes on each of these. (c) The Electricity Supply Board (ESB) is facing increasing competition and possible privatisation. (i) Explain the underlined term. (ii) Name one company currently competing with the ESB for domestic / home electricity supply. (iii) State and explain one way any two of the following may be affected by the possible privatisation of the ESB: consumers of the ESB; employees of the ESB; the Irish Government.3. (a) A retailer needs capital to commence business. A retailer also needs to purchase stock for sale, pay wages and pay rent for premises. (i) Explain the term 'capital' as a factor of production. (ii) Define the terms fixed costs and variable costs. (ili) State whether each of the three underlined costs above is an example of a fixed cost or a variable cost. (b) Wage levels have fallen in both the public sector and the private sector in Ireland. (i) Explain each of the underlined terms and state one example of an occupation in each. (ii) Discuss two economic effects which falling wage levels may have on each of the following: Businesses; Government finances. (c) In the Government's Budget introduced in December 2010, the national minimum wage was reduced from 68.65 to 67.65 per hour. (1) Explain the underlined term. (ii) State two economic reasons why, in your opinion, the national minimum wage was reduced. (iii) Outline two possible economic effects of this wage reduction for the Irish worker. You are given the following information about a country's trade. Visible Exports Visible Imports Balance of Trade Surplus or Deficit E million E million E million 24,000 23,600 400 Surplus (a) (i) Explain the terms "visible exports' and *visible imports' and give one example of each with reference to Ireland. (ii) If the level of visible imports above increased by (600m calculate the new Balance of Trade. (Show your workings.) (iii) State whether the new Balance of Trade is a surplus or deficit and explain your answer. (b) Ireland as a small open economy relies on international trade. (1) Explain the underlined term. (ii) State and explain three economic reasons why Ireland needs to engage in trade. (c) Overseas visitors to Ireland are an example of an invisible export. (1) Explain the underlined term. (1i) State and explain two benefits for the Irish economy of an increase in the number of overseas visitors to Ireland. (iii) State and explain two actions which the Irish Tourist Industry could take to encourage visitors to Ireland.2. The information below represents the expected demand and the planned supply schedule for umbrellas at the Oxegen Music Festival in 2011. Price Quantity Demanded Quantity Supplied C (units) (units) 1.00 500 200 2.00 500 300 3.00 400 400 4.00 300 500 5.00 200 600 Using the above data and one diagram (you may use graph paper if you wish): (a) (i) Draw and label the market demand curve for umbrellas; (ii) Draw and label the market supply curve for umbrellas; (iii) Show on your diagram: the market equilibrium price for umbrellas the market equilibrium quantity for umbrellas. (b) The demand curve for umbrellas OR the supply curve for umbrellas may shift to the right or to the left due to the following an unexpected heavy rainfall occurs during the Oxegen Music Festival; . . breakdown of the main supply truck delivering umbrellas to the festival site. In relation to each of the above statements, answer the three following questions: (i) state whether the demand curve or supply curve will shift; (ii) state whether the curve you mention will shift to the right or the left; (iii) explain why the curve has shifted in the direction you have stated. (c) The opening of new sections of motorways between Dublin and other Irish cities has affected the demand for rail transport in Ireland. (i) Outline one possible economic advantage OR one possible economic disadvantage of these new motorways for the public. (ii) State and explain two actions Iarnrod Eireann (Irish Rail) could take to increase demand for its services. (iii) Explain two advantages for the Irish economy of increased use of public transport such as larrod Eireann (Irish Rail), instead of private transport