Midterm Micro Spring 2025

Semester: Spring-202S Time: 90 minutes Daffodil International University Faculty of Business&Entrepreneurship Department of Business Administration Program: BBA Examination: Midterm Full Marks: 2S Course Code: 0311-212 Course Title: Microeconomics Teachers' Initial: 2 a. Differentiate between microeconomics and macroeconomics with real life example. 2 [CLO 1, Level 2] b. How would you explain the fundamental problems in economics with examples? 3 [CLO 1, Level 2] Suppose a hypothetical country 'Fairyland' can produce either motorbike or using all its scarce resources. The figures are in units. Mo torbike 100 80 60 40 20 0 Car 0 25 45 65 75 85 a. Plot a well-labeled PPF diagram for 'Fairyland', u.ith motorbikes on the Y-Axis, and cars on the x-axls_ 2 [CLO 2, Level 3] b. Briefly describe Production Possibility Frontier with the help of Production Efficiency and Tradeoff 3 [CLO 2, Level 3] 3 _ a. Distinguish between movement along the demand cumre and shift of the demand u.ith example. 3 [CLO 2: Level 3] b. Assume that the market for cherries is in equilibrium. Suddenly: the cherry market is subject to a major change. It is found that a group of insects destroyed a significant proportion of the cherry crop over the last week. Using the supply and demand model show and explain the impact of this changes on the equilibrium price and quantity in the cherry market 2 [CLO 2, Level 3] Pagel 1 4. The table sets out the demand and supply schedule for Greeting Cards on a normal weekend. Identi$r the following situations Price (do Ilar per card) Quantity demanded 9 10 200 120 Quantity supplied 110 150 180 a. Analyze Market equilibrium and disequilibrium in this market. 6 [CLO 3: Level 4] b. Consider the following equations, calculate the equilibrium price and quantity with a clearly labeled diagram. 300- 2Qd P=100+3Qs 4 [CLO 3: Level 4] Page 2