Q. a) Distinguish the following types of market structures. Monopoly (4 marks) Monopolistic competition (4 marks) b) Show the equilibrium position of a firm and industry under perfect competition in Read More …
Tag: 1.3
Factors of Production & Law of Diminishing Returns Q3
Q. a) With the aid of diagram, discuss the relationship between factors of production and the law of diminishing returns. (15 marks) b) Using appropriate examples, explain the meaning of Read More …
Price Demand Elasticity Q2
Q. a) Illustrate how prices are determined by the free forces if demand and supply. (5 marks) b) Show the different types of elasticity of demand. (5 marks) c) Necessities Read More …
Basic Economic Problems & Mixed Economy Q1
Q. a) Explain the basic economic problems that every economic system must resolve. (10 marks) b) Do you agree with the statement that a “mixed economy” is the most suitable Read More …
吃亏 and Pareto Efficiency
GDP v GNP
Q.Compare GDP and GNP. A.From Wikipedia: Gross national product (GNP) is the market value of all the products and services produced in one year by labor and property supplied by Read More …
Fixed and Variable Cost Q3
Q.Differentiate between fixed cost and variable cost. (5 marks, 2012 Q3b) How are they inter-play with the law of diminishing marginal return in various production stages? A.Fixed costs are costs Read More …
Stages of Production Q3
Q. a) In the short-run, all production process will be subjected to the law of diminishing marginal returns. Using graph and table, illustrate this law. What are the stages of Read More …
Diminishing marginal returns
Q.a) In the short-run, all production process will be subjected to the law of diminishing marginal returns. Using graph and table, illustrate this law. (20 marks, 2012 Q3a) A.a) The Read More …
Ricardo’s Theory of Rent Q2
Q.c) Illustrate Ricardo’s theory of rent and the assumptions. (10 marks) (10 marks, 2012 Q2c) A.Ricardo in his theory states the Law as follows: “That portion of the produce of Read More …
Elastic or Inelastic demand Q2
Q. a) Decide whether the following goods have elastic or inelastic demand. Give reasons. i) Petroleum ii) Clothes iii) Jewellery iv) Low-cost house v) Toothpaste (5 marks) b) State the Read More …
Price elasticity of Demand and Supply
Q.Explain diagrammatically how prices are determined by free forces of demand and supply. (5 marks) (5 marks, 2012 Q1bii) A. The Determination of Price and Quantity The logic of the Read More …
Demand Explained
Q.What is the meaning of ‘demand’. Why is the market demand curve sloping downward? (5 marks) (5 marks, 2012 Q1bi) A.i) Meaning of ‘demand’. Definition of ‘Demand’ An economic principle Read More …
Economic Systems and Mixed Economic System Q1
Q. a) Define economic systems. What do you mean by saying that the Malaysian economy is a mixed economy. (10 marks) b) i) Explain the meaning of demand. Why is Read More …
Accounting for GDP – Expenditure way
Q.Illustrate how GDP can be calculated with the following events in your country. Extracted from Khan Academy at www.khanacademy.org. A.1. Khan Academy paid $100k for a new software to engineer Read More …
Consumer and Producer Surpluses
Q. Why are they called Consumer and Producer ‘surplus’? What do you mean by ‘surplus’? Illustrate how the graph can be used to explain market collusion among the producers. A. Read More …
Externalities
Q.What do you understand by ‘externalities’? A. In economics, an externality is the cost or benefit that affects a party who did not choose to incur that cost or benefit.[1] For example, manufacturing Read More …
Deadweight Loss
Q.What is Deadweight Loss? Explain with a diagram and with some examples. A. . In economics, a deadweight loss (also known as excess burden or allocative inefficiency) is a loss of economic efficiency that can occur when equilibrium Read More …
Central bank vs Commercial bank
Q.b) Differentiate the functions of commercial banks and central bank. (10 marks) (10 marks, 2011 Q7b) A. A central bank is a banker’s bank. It is normally part of or Read More …
Consumer Price Index Q8
Q.Explain the following terms: d) Consumer Price Index (4 marks) (4 marks, 2011 Q8) What is consumer price index (CPI), and what are the purposes of having CPI? A.A consumer price Read More …