™-—_— Question 1 [10 marks in total] le Provide brief answers to the following questions: fo a) “ALI salaries for ADNOC employees should increase by 10%.” Identify whether this ‘statement is positive or normative, Explain why. {4 marks} are because 11S wet afsck Con disagree of agree (opinen\ be teshed we 'b) Fatema needed furniture for her lent, $0 she went to Ikeg, After picking out what she needed, her total added up 10(2,300dirhams. There is a.100 dicham delivery fee itate spends less than 2,500 (there is no such fee if she spends a total of more than 2,5 dirhams), What would be the marginal cost to Fatema if she added, inher order, «dresser Priced for 750 dirhams? [6 marks} — etd Cod = #50 ,2 Joo = 3050 Bv bene and profit ard nlSs co te 204 $2) 2 650 divhous sy ka giet cost. $050°~ | 23424 ) = jestion 2 (14 marks in total] \ “™ figure below shows a nation's production possiblities frontier for apples and oranges, A Vi PR! Y Hh | 3 : Seren diesinel 8) Which points represent an attainable (feasible) combination of goods? (6 marks} pit 5) Which points represent productive efficient combinations of goods? [4 marks} eb ©) The nation is currently producing at point Mand wents to move to opportunity cost of such a move? [4 marks] (3-2) veus = [H-3) oF ers Uy gent of RARE iijonsof. eaghits 2 Coupe g Ya ylang o% : . ev > seeirin 4 5 yowill tou, at yrshl ¢ ot % point D. What is the . y wy ade Hee ae Usov af Oo y andes16/6 Peto 3116 marks in toa below shows the amounts of nude oi and natural gas produced every day in Iraq and in © the year 2015, Traq UAE 33 29 llion cubic meters) 1001 60181 From this data, explain which country has: 8) An absolute advantage in the production of natural gas. |S marks] } Tie \avges Ps SS ge ee OWE be Cause st has predschin 6 & a juret Ons b) mages We its ede ol 1 pu o oo 7¢6 i » eC Eg oS 266 ue a erode akionw Z hey abyss © cade Tet 4M Cogekive . oo Be al\ veranre WW te exvoil of cos Spenly cosh o te pets? Question 4 {20 marks in total] 7/__ Consider an economy with a PPF for two goods: good A is measured on the vertical axis; while economy, every time resources are transferred from good A = 800d B on the horizontal axis. In this LO prea, 10 units of good A are given up in return for 20 Units of good B, (hl B 2 Draw below the PPF of this economy. [8 marks] \"} © &f Pan) a qoo8 (% +t e v > 6 qe & 2 jos & (oats)& How woul a Cost ine id the Marginal Cost curve of g00d A look like? (Draw below your Marginal ‘© in terms of foregone unite of good B.) [6 marks} z geod A ¢. Imagine that technological developments enabled the production of good B to increase for any given amount of. resources, The technology has no impact on the Production of good occur following this technological development (draw A. Draw the new PPF that would the new PPF on the same graph you had provided for Sub-question a). (6 marks} zy 7 & (ut)