AME1501/101/3/2023

1 ADDENDUM
SEMESTER 1
ASSIGNMENT 1
QUESTION 1 [20 MARKS]

Define the following terminologies.

1.1 Opportunity cost (02)

1.2 Demand (02)
1.3 Production function (02)
1.4 Average fixed costs (02)
1.5 Efficiency (02)
1.6 Inflation (02)
1.7 Scarcity (02)
1.8 Entrepreneur (02)
1.9 Inferior good (02)
1.10 Market Equilibrium (02)

QUESTION 2 [35 MARKS]

2.1 Provide a scenario of a concave Production Possibly Frontier (PPF) curve between two
agricultural products of your choice and answer the following questions based on your
PPF:

2.1.1 Provide a table of your data and draw a well labelled PPF curve. (10)

2.1.2 Describe the opportunity cost of your PPF and state the reasons for the shape

of the curve. (10)

2.1.3 Show the points of unattainability and inefficiency on your graph and describe

the reason behind these two points. (06)

2.2 Describe the Land reform programs in South Africa. (09)

[TURN OVER]
QUESTION 3 [45 MARKS]

3.1 Discuss the concept of scarcity, choice and allocation under economic activity (11)
3.2 With the aid of a diagram show and explain the stages of production in an
economy (12)

3.3 Discuss the characteristics of firms or farm business exercising monopoly power. (10)

3.4 What are the determinants of the elasticity of demand? (12)

TOTAL= 100
@
UNISA 2023