Economics 8136/1 June 2022

The exam paper examines microeconomic principles, focusing on market structures, resource allocation, and economic efficiency. Key topics include factors of production, diseconomies of scale, elasticity, market equilibrium, and externalities. The role of competition, opportunity costs, and market failures are analyzed, with specific examples such as the UK petrol market and palm oil production. Data-driven tasks include calculations of elasticity, costs, and average revenues. Government policies to address income inequality, wage differentials, and market failures are explored, emphasizing their socio-economic impacts. The paper integrates theoretical and real-world contexts, assessing consumer welfare and business decisions.