Answer all questions. Type the assignment but the graphs can be hand drawn. use graphs wherever possible to answer the questions. allowable similarity index is 20%.include both in-text reference and list of reference to support external research.

QUESTION 1

1. Economist can use two types of economic statements to engage with governments. Provide an example of both the statements and explain their purpose. 2 Marks

1. Explain two ways to increase the efficiency of each of the three factors of production. 3 Marks.
2. Define and explain what your opportunity cost is of attending an economic class. 1 Mark.

QUESTION 2

1. It was noted that even with the increase in the supply of face masks, the price of face masks increased. Graphically represent and explain why? 2 Marks.
2. Assume the increase in the demand for alcoholic drinks and government increasing the tax on such drinks have occurred at the same time. Graphically represent and explain, with demand and supply graphs, the effect on the price and quantity in the market for alcoholic drinks. Hint: address all possibilities in your answer. 3 Marks.

QUESTION 3

Using the concept of a change in demand and/or supply, graphically represent and explain three ways in which a market can be in surplus. Explain how the market adjusts to remove the surplus. 3 Marks.

QUESTION 4

Assume an increase in price from $3.15 to $3.55 leads to a fall in quantity demanded from 25 to 12 units. Use the average formula, calculate and explain the impact of the price rise on the total revenue. 2 marks.

QUESTION 5

1. Recent increase in energy price due to world events such as the war in Ukraine has resulted in governments in many countries thinking about placing a price cap. A price cap sets a limit on the price that an energy provider can charge. Graphically, represent the government intention and explain two implications of the price cap. 3 Marks.

1. Why does public goods have the "Free Rider" problem? 1 Mark