3. (a) Marginal Revenue Product (MRP) equals Marginal Physical Product (MPP) multiplied by Marginal Revenue (MR). (i) Explain the underlined terms. (ii) Outline the factors which influence MPP and MRP. (25 marks) (b) (i) Define LAND as a factor of production. (ii) Outline TWO economic characteristics of land. (iii) Explain the concept of Economic Rent and illustrate with a relevant example. (30 marks) (c) The price of residential property has increased in Ireland in recent years. Discuss FOUR reasons for this development. (20 marks) [75marks] 4. (a) In each of the following distinguish between the terms: (1) monetary policy and fiscal policy; (ii) progressive taxation and regressive taxation; (iii) tax avoidance and tax evasion. (30 marks) (b) There has been an increase in government income from taxation in the past year. (i) Outline THREE reasons for this outcome. (ii) State ONE revenue opportunity and ONE expenditure opportunity for the government arising from this increased income. Which of these would you consider a priority? Explain your choice. (25 marks) (c) Explain how an understanding by the Minister for Finance of the concept of Price Elasticity of Demand would help in setting levels of indirect taxation. Use examples to illustrate your answer. (20 marks) (75marks1. (a) State and explain FIVE factors which affect a consumer's demand schedule. (25 marks) (b) (i) Show, by means of a labelled diagram, the market demand and supply for a product. Indicate the equilibrium price and quantity in this market. (ii) Explain, with the aid of a separate diagram in each case, the effects which each of the following may have on the above equilibrium position: A successful advertising campaign in favour of the product is introduced; A tariff on imports of the product is removed. (30 marks) (c) Assume that the average spending on energy by a low-income family is 640 weekly, The price of energy rises by 20% so that the same consumption by a low-income family would now cost (48 weekly. The government is considering introducing one of the following policy measures to assist low-income families: . giving low- income families an increased allowance of 68 weekly (income supplement); subsidising the producers of energy so that energy can continue to be sold at the initial price (price subsidy). Which policy measure would you advise the government to take? Explain the economic reasons for your answer. (20 marks) [75marks] 2. (a) State and explain the assumptions underlying the theory of imperfect competition. (20 marks) (b) (i) Explain, with the aid of a clearly labelled diagram the long run equilibrium position of a firm in imperfect competition. (ii) State and explain ONE feature of this firm in long run equilibrium which would be common to a firm in long run equilibrium under perfect competition. (iii) State and explain ONE feature of this firm in long run equilibrium which would be common to a firm in long run equilibrium under monopoly. (40 marks) (e) Consider the retail market for petrol. Do you believe that this market operates under conditions of imperfect competition? State reasons for your answer. (15 marks) [75marks]