CONFIDENTIAL BM/JUN 2015/EC0162/104 UNIVERSITI TEKNOLOGI MARA FINAL EXAMINATION COURSE : MICROECONOMICS COURSE CODE ECO162/104 EXAMINATION JUNE 2015, TIME : 3HOURS 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 ji) an Answer Booklet — provided by the Faculty iil) an Objective Answer Sheet provided by the Faculty iv) a Graph Paper — provided by the Faculty 5. Answer ALL questions in English. DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO This examination paper consists of 9 printed pages (© Hak Cipta Universiti Teknologi MARA, CONFIDENTIAL,CONFIDENTIAL, 2 BM/JUN 2015/ECO162/104 PART A (20 MARKS) 1 Society will face scarcity due to limited resources and unlimited wants. Therefore society must make A. opportunity cost. B. choices C. decision. D. scarification, 2. In order to produce one more unit of good X, fewer good Y needs to be sacrificed. Thus, the shape of production possibility curve (PPC) is concave, linear. convex. inverted U-shape. com> 3. When price of a good increases A. the quantity demanded of the good will decrease, B. the quantity demanded of the good will increase. C. the demand curve will shift leftwards. D. the demand curve will shift rightwards. 4. If the price of air-conditioner increases, the demand of fan will increase. Air- conditioner and fan can be considered as A. substitute goods. B. complementary goods. C. giffen goods. D. normal goods. 5. Which one of the following will cause the demand curve to shift rightwards? A. increase in cost of production. B. increase in factors of production. C. increase in price of the good. D. increase in tastes and preferences. 6 are the type of exceptional demand goods. Giffen goods. Normal goods. Complementary goods. Substitutes goods. pom> (© Hak Cipta Universiti Teknologi MARA, CONFIDENTIALCONFIDENTIAL 3 BMIJUN 2015/ECO162/104 10. "1 12. Which one of the following is the determinant of price elasticity of demand? ‘A. The amount of income spent. B. Perishabilty C. Change in cost of production D. Technology improvement. Suppose the price of a bottle ribena increases by 10%, the quantity supplied of bottle ribena increases by 20%. Thus, the supply of bottle ribena is A. perfectly elastic. B. elastic. C. perfectly inelastic. D. inelastic. ‘When the price of donut raises, the total revenue collected by producer reduces and vice-versa. This indicates that ‘A. the demand for donut is elastic. B. the demand for donut is inelastic. €. the demand for donut is unitary elastic. D. the demand for donut is perfectly inelastic. ‘Suppose the price of a good reduces below the equilibrium price. This will cause A. surplus and the price of good will increase towards equilibrium price. B. surplus and the price of good will reduce towards equilibrium price. C. shortage and the price of good will increase towards equilibrium price. D. shortage and the price of good will reduce towards equilibrium price. Which one of the following is the advantage of price ceiling? ‘A. The income of producer is protected. B. The unemployment rate will be reduced. C. Consumers enjoy goods and services at lower price. D. The resources are fully utilized. When total product of labor is at maximum, the marginal product of labor is positive. negative. zero. maximum. pom> © Hak Cipta Universit Toknolog! MARA CONFIDENTIAL