CONFIDENTIAL BMIMAR 2015/ECO162/104 UNIVERSITI TEKNOLOGI MARA FINAL EXAMINATION COURSE : MICROECONOMICS COURSE CODE : ECO162/104 EXAMINATION MARCH 2015 TIME : 3 HOURS INSTRUCTIONS TO CANDIDATES 1. This question paper consists of three (3) parts: PART A (20 Questions) PART B (4 Questions) PART C (4 Questions) 2. Answer ALL questions from PART A and PART B, and two (2) questions from PART C. i) Answer PART A in the Objective Answer Sheet. ji) Answer PART B and PART C in the Answer Booklet. Start each answer on a new page. 3. Do not bring any material into the examination room unless permission is given by the invigilator. 4, Please check to make sure that this examination pack consists of: i) the Question Paper ii) an Answer Booklet — provided by the Faculty iii) an Objective Answer Sheet — provided by the Faculty iv) a Graph Paper — provided by the Faculty DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO This examination paper consists of 10 printed pages (© Hak Cipta Universiti Teknologi MARA CONFIDENTIAL,CONFIDENTIAL, 2 BM/MAR 2015/ECO162/104 PART A (20 MARKS) 1, The study of economics focuses on ‘A. the behavior of successful businesses. B. the role of money in our economy. C. how best to allocate scarce resources, D. _ the elimination of opportunity costs. 2. Which of the following will result in an outward movement of the productions possibilities curve? A. Economic recession. B. Technological advancement. C. — Adecline in population. D. Political instability. 3. Which of the following is not the characteristic of capitalist? A. Private ownership of resources. B. Price is determined through price mechanism. C. High competition among producers. D. Central planning authority. 4. If two goods are substitutes, an increase in the price of one good will ‘A. decrease the quantity demanded for the other good. B. decrease the demand for the other good. C. increase the demand for the other good D. increase the quantity demanded for the other good, 5. In the market for tea, we can consider A. milo as a complementary good. B. sugar as a complementary good. C. coffee as a complementary good. D. milo as an unrelated good. 6. Classification of goods in Islam is based on the A. value of goods. B. prices of goods. Cc. needs and wants of human beings. D. purchasing power of society. (© Hak Cipta Universiti Teknologi MARA, CONFIDENTIAL,CONFIDENTIAL 3 BMIMAR 2015/ECO162/104 7. 10. "1. Al-Falah refers to A. the role of men as the vicegerents of Allah swt to whom all economic resources are entrusted. B. purifying and cleansing one's soul and wealth through waqaf, zakat and sadagah. C. the blessing of Allah swt which ensure one’s happiness in this world as well as in the hereafter. D. the belief and understanding that Allah is the Creator, the Lord, the Sovereign, the Sustainer and the Giver. Equilibrium price will increase if A. supply increases and demand decreases. B. supply decreases and demand increases. C. both supply and demand decrease. D. both supply and demand increase. Demand for a good exists when ‘A. the buyer wants to own the good. B. the buyer is both willing and able to purchase the good, C. the price of the good is low. D. there is an adequate supply of the good available for purchase. If petrol stations raise the price of petrol and experience a decrease in demand for cars, then petrol and cars are A. substitutes. B. unrelated goods. C. inferior goods. D. complements. To economists the main difference between the short - run and the long - run is that ‘A. the law of diminishing returns applies in the long run, but not in the short run. B. in the long run all the resources are variable, while in the short run at least one resource is fixed. ©. fixed costs are more important to decision making in the long run than they are in the short run. D. inthe short run all the resources are fixed, while in the long run all resources are variable. (© Hak Cipta Universiti Teknologi MARA CONFIDENTIAL