1. How does economics predict rational consumers will treat spending on credit cards compared with..

1. How does economics predict
rational consumers will treat spending on credit cards compared with spending cash?
Do you think that there are likely to be differences in the way people spend by
each? If so, can you explain why?

2. Many European countries operate
organ donor schemes, some with schemes requiring that potential donors opt in,
others with a system of opting out, or presumed consent. Explain why a system
of presumed consent is likely to result in much higher numbers of donors. Does
your answer suggest that we should move to presumed consent for organ donors in
the UK?

1. How does economics predict
rational consumers will treat spending on credit cards compared with spending cash?
Do you think that there are likely to be differences in the way people spend by
each? If so, can you explain why?

2. Many European countries operate
organ donor schemes, some with schemes requiring that potential donors opt in,
others with a system of opting out, or presumed consent. Explain why a system
of presumed consent is likely to result in much higher numbers of donors. Does
your answer suggest that we should move to presumed consent for organ donors in
the UK?

Q16;

1. The following table shows the
average cost and average revenue (price) for a firm at each level of output.

(a) Construct a table to show TC
, MC , TR and MR at each level of output (put the
figures for MC and MR midway between the output figures).

(b) Using MC and MR figures,
find the profitmaximising output.

(c) Using TC and TR figures,
check your answer to (b).

(d) Plot the AC , MC ,
AR and MR figures on a graph.

(e) Mark the profit-maximising
output and the AR and AC at this output.

(f) Shade in an area to represent
the level of profits at this output.

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