PRBE001 Economics for Managers

Discussion questions for Tutorial Eight.

1. Define microeconomics and what are its main areas of interest?
2. Briefly explain the following terms:
opportunity costs
direct and derived demand
utility and utility function
elasticity of demand
economic profit
welfare economics
3. Define demand. Define supply. In your answers, explain the difference between demand
and quantity demanded and between supply and quantity supplied.
4. List the key non-price factors that influence demand and supply.
5. Using a production possibility curve, explain and illustrate the meaning of opportunity cost.
6. Explain the law of diminishing returns and what is its importance for decision makers?