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    50 views9 pages

    Eco16 PDF

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    Anonymous gdA3wqWcP

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    © All Rights Reserved
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    CONFIDENTIAL BM/MAR 2016/ECO162/104 UNIVERSITI TEKNOLOGI MARA FINAL EXAMINATION COURSE MICROECONOMICS COURSE CODE EC0162/104 EXAMINATION : MARCH 2016 TIME : 3HOURS INSTRUCTIONS TO CANDIDATES 1 This question paper consists of three (3) parts: PART A (20 Questions) PART 8 (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. ii) 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 ili) 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 D0 SO This examination paper consists of 9 printed pages (© Hak Cipta Universit Teknologi MARA CONFIDENTIAL CONFIDENTIAL 2 BM/MAR 2016/ECO162/104 PARTA 1. The production possibility curve (PPC) illustrates the basic principle that an economy ‘A. can produce unlimited amount of product due to the possibilty of finding new resources. B. able to produce outside the PPC if there is full employment. C. would produce more of a good if less of another is produced. D. would produce more of a good if more of another is produced. 2. The main reason why we study economics is man has A. limited resources. B. —_unlimited wants and needs. C. _unlimited wants but resources are limited. D. _ limited wants and needs. 3. Which of the following is not a determinant of supply for petrol? A The price of diesel. B. The number of seller. C. The price of an automobile. D. Consumers’ income. 4. Ifthe price of a product increases, most likely ‘A. the quantity demanded will decrease, B. the quantity supplied will decrease. C. demand will decrease, D. supply will decrease, 5. Below are the factors that cause a movement along the supply curve A. increase of tax. B. decrease of tax. C. change in the price. D. _ increase in the price of other goods. 6. The backward bending supply curve of labour is the result of an increase in the demand for income by poor workers. an increase in the demand for leisure at high wage rate, an increase in the wage rate. a decrease in the wage rate. pom> (© Hak Cipta Universiti Toknolog! MARA CONFIDENTIAL CONFIDENTIAL 3 BM/MAR 2016/ECO162/104 10. " 12, 13, In general, over longer periods, supply of the product tends to become A B C. D. unitary elastic. perfectly inelastic. zero. more elastic. If the elasticity of supply is 1.35, it indicates that supply is A 8 c. D. unitary elastic. inelastic. elastic. perfectly inelastic. ‘Suppose the price of rock melon falls by 8 percent and the quantity supplied decreases by 10 percent. The coefficient of price elasticity of supply for rock melon less than 1 therefore, supply is inelastic. more than 1 therefore, supply is elastic. negative, therefore rock melon is inferior good. positive, therefore rock melon is a luxury good Market equilibrium is achieved when A B. ci D. the quantity demanded is equal to the number of buyers. the price is equal to the quantity. the quantity demanded is equal to the quantity supplied. the number of buyers is equal to the number of sellers. The imposition of price ceiling in the market will cause quantity demanded to be A B c. D. greater than quantity supplied. less than quantity supplied. equal to quantity supplied any of the above is possible Price control can lead to waste of resources if A B. c. D. the maximum price is above the equilibrium price. the maximum price is below the equilibrium price. the minimum price is above the equilibrium price. the minimum price is below the equilibrium price. The marginal cost of a good is pop> the addition to the total cost of producing one more unit of output. decreasing when average total cost is decreasing, the difference between average total cost and average fixed cost. always equal to average variable cost when the firm is maximizing profit (© Hak Cipta Universiti Teknologi MARA CONFIDENTIAL CONFIDENTIAL 4 BMIMAR 2016/ECO162/104 14, 15. 16. 17. 18. 19, 20. ‘Which of the following indicates short run cost of a fruits company? A. Cash register and the building. B. Electricity and labours. C.— Labours and fruits D. Fruits and the building. Which statement is correct? ‘A. AFC curve is U-shaped. B. MC curve is U-shaped ic TC curve is U-shaped, D. MC curve is inverted U-shaped, In the monopolistically competitive market A. there are only few firms. B. there is very difficulty for new firms to enter. C. firms practice non-price competition. D. the demand curve is inelastic. The firm’s equilibrium is attained when A Mi BMI Cc Ml DEAR ‘A monopolistically competitive firm in the long run earns the normal profit as in a A. perfectly competitive firm. B. monopolist. C. _oligopolies. D. none of the above. Price discrimination exits in which market structure? A. Perfect competition. B. Monopoly. C. — Monopolistic competition. D. Oligopoly. A firm will shut down if pom> AR

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