Eco 253;

1. (a) (i) Define the economic terms: individual (firm) supply; market supply. (ii) Explain, with the aid of labelled diagrams, the relationship between individual (firm) supply and market supply. (b) Explain, with the aid of a labelled diagram, the supply curve of an individual firm in each of the following circumstances. State one example in each case. (i) A firm is willing to increase supply as price rises, but there is a minimum price bel which the firm will not supply at all. (ii) A firm can supply only up to a maximum production capacity. (iii) The product is fixed in supply (e.g. perishable good) and a firm is operating in the short run. (c) Outline FOUR factors, other than price, which affect the supply curve of an individual firm. In each case explain how the factor affects the supply curve.(ii) Explain, with the aid of a labelled diagram, the equilibrium position of a firm in short run perfect competition. b) With the aid of a labelled diagram(s), explain the impact which the entry of new firms would have on the market and on the equilibrium position of this firm.8. (a) Outline, using appropriate figures, how the Irish economy performed in the past twelve months in each of the following areas: (i) employment; (ii) interest rates; (iii) price inflation; (iv) government taxation. (20 marks) (b) (i) State and explain FOUR economic aims of the Irish government. (ii) Discuss TWO examples where economic policies introduced to achieve one economic aim, may make it more difficult to achieve one of the other aims. (25 marks) (c) "The National Debt / GDP ratio has fallen from over 90% during the first half of the 1990's to an estimated 25.1 % at the end of 2006'. (National Treasury Management Agency) (i) Briefly explain each of the underlined terms. (ii) Outline the economic benefits of this changed situation for the Irish economy.3. (a) The demand for labour as a factor of production is a derived demand and is affected by that factor's Marginal Revenue Productivity (MRP). (i) Explain each of the underlined terms. (ii) Outline TWO developments, other than a fall in MRP, which may result in a firm reducing its number of employees. (20 m (b) (i) State and explain THREE factors which are currently affecting the supply of labour to the Irish economy. (ii) The demand for labour has increased significantly in certain sectors of the Irish economy in recent years, e.g. construction. Discuss THREE economic consequences of this situation. (30 m (c) *At a time of full (or near full) employment in the Irish economy, it is important that there sh be the maximum occupational mobility and geographical mobility of labour." (i) Distinguish between the two underlined terms. (ii) Outline THREE economic policies which could increase either occupational mobility