FINAL EXAMINATION

SEMESTER II, ACADENllC SESSION 201412015

1 DATE : JUNE - J U L Y 2015 DURATION : 2 HOURS 30 MINUTES

MEA3023
MALAYSIAN ECONOMICS
(EKONOMI MALAYSIA)

INSTRUCTIONS TO CANDIDATES:

1. This paper contains TWO (2) sections, Section A and Section B.

Section A : Multiple Choice Questions (60 Marks)
Section B : Essay Questions (40 Marks)
2. Answer ALL questions from Section A in the OMR Form (USIM-BA-101) and
ALL questions from Section B in the Answer Booklet provided.
3. Candidates are not allowed to bring any materials except stationeries and
non-programmable calculator into the examination hall without prior
permission.
4. Candidates are n o t allowed to take question paper out of the examination hall.
5. Please complete your particulars in Borang H, OMR Form and the Answer
Booklet.

DO NOT OPEN THIS QUESTION PAPER UNTIL YOU ARE INSTRUCTED TO DO SO

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This quest~onpaper has SIX (6) pr~ntedpages excluding thls cover page
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SECTION A: MULTIPLE CHOICE QUESTIONS [60 Marks]

This section contains THIRTY (30) questions. Answer ALL questions
Each question carries 2 marks.

1. In which of the periods did Malaysia enjoy its highest annual rate of growth in
GDP?

2. Which economic activity did the government of Malaysia identify as the engine of
growth to achieve the goals of the New Economic Policy (MEP)?

A. Agriculture.
B. Mining.
C. Manufacturing
D. Services.

3. What was the MAIN reason of consumption expenditure rose in 2009 as a share
of GDP in Malaysia?

A. Fiscal stimulus injected by the government.

B. Per capita income of the population rose in that year.
C. Poverty levels fell.
D. Private sector consumption expanded sharply.

4. 'The following could be advantages of a fixed exchange rate system EXCEPT

A. promotes international trade.

B. induces price stability.
C. encourages speculation.
D. promotes cross-country capital flows

5. The IVlAlN mining technique used by Western mining companies in Malaya

between the two world wars was

A. tin dredging.
B. underground mining.
C. gravel pumping.
D. dulang washing.

6. The enrolment rates of female students during 1990's have exceeded those of
males for all of the following levels EXCEPT

A. primary schools.
B. upper secondary schools
C. first degree education.
D. postgraduate education.

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7. Which of the following is NOT true?

A. Tariffs facing agricultural products in Malaysia have fallen since the 1990s
B. Paddy farming in Malaysia is no longer subsidized.
C. Incentives are available to promote New Agriculture in Malaysia.
D. Small farm size is a problem in Malaysia.

8. The Gini coefficient is measured by dividing the area between the diagonal and

A. Kuznets curve.
B. Lorenz curve.
C. Poverty line.
D. Income curve.

9. What was the prime cause of the high inflation recorded by Malaysia in 1976?

A. Ethnic bloodshed.
B. Rising oil prices.
C. Collapse in the prices of rubber and tin.
D. A sharp fall in food output.

10. The following could be disadvantages of a flexible exchange rate system

EXCEPT

A. encourages international trade.

B. greater exchange rate uncertainty.
C. interrupts trade and capital flows.
D. encourages speculation.

11. Which of the following agricultural crops became a leading export of Malaya
during colonial rule?

A. Rubber.
C. Coconut.
B. Oil palm.
D. Rice.

12. 'The shortage of graduates in the labor force and graduate unemployment has
nothing to do with gender imbalance in education'. Which statement is FALSE?

A. 'The proportion of male graduates outside the labor force is higher than that of
female graduates.
B. There is a tendency for underemployment especially among fresh female
graduates.
C. There is gender discrimination in the labor market.
D. The drop-out rate of male students is higher in the universities.

13. Malaysia has made significant progress in increasing the of

Bumiputera educational attainment but questions have surfaced over the
of tertiary-level graduates.

A. access; experience
B. formula; profile
C. quantity; quality
D. pace; amount

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14. The terms of trade are

A. the legal framework of exporting.

B. an index of export prices divided by an index of import prices.
C. the terms on which an exporter can borrow from a bank.
D. an index of import prices divided by an index of export prices.

15. Which of the following crops became Malaysia's leading agricultural exports
since the late 1970s?

A. Rubber.
B. Rice.
C. Oil palm
D. Pepper.

16. Which of the following was NOT one of the reasons for the Malaysian
government to develop agriculture in the 1970s?

A. To increase food supply for domestic consumption.

B. To assist a large segment of the rural population that is tied to land.
C. To make agriculture a leading export earner.
D. To overcome balance-of-payments deficits in food crops such as paddy and
sugarcane.

17. Government can stimulate technology development by

A. encouraging more private research and development (R&D) investments.

B. imposing higher taxes on capital.
C. reducing spending in education.
D. reducing entrepreneurship activities.

18. Which of the following BEST explains why Malaysia faced low unemployment
rates over the period of 1990-1 997?

A. Massive investment in heavy industries.

B. Massive inflows of foreign direct investment in export-oriented industries
C. Government's technological deepening efforts.
D. Expansion of employment in government service.

19. Which of the following is FALSE about the expansion in Malaysia's education
sector?

A. Enrolment rate is near universal in public primary schools.

B. Malaysia has one of the highest public expenditure on education as a
percentage of GDP in the region.
C. The passing of the Private Higher Education Institutions Act has ended the
state's control of the education sector.
D. The gains from the expanding education sector have been uneven across
gender.

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SLILIT

20. The rationales for privatization includes

i. increasing efficiency
ii. meeting the objectives of New Economic Policy (NEP)
iii. raise revenues by the state
iv. developing the capital market

A. i, ii and iv.
B. i, ii and iii.
C. ii, iii and iv
D. i, iii and iv.

21. Which of the following factors is most likely to influence the effectiveness of a
monetary policy instrument?

A. Demographic structure.
B. State of the banking system.
C. State of the nation's economy
D. Current account balance.

22. Which of the following initiatives helped Malaysia recover quickly from the
financial crisis of 1997-1 998?

A. Greater export orientation.

B. Increased roles for the private sector.
C. Keynesian capital control packages.
D. Liberalization of heavy industries.

23. The MAIN expected development gain from petroleum production is

A. new employment.
B. tax revenue.
C. final demand linkages.
D. new technology.

24. Which of the following is NOT one of the features of the New Agriculture
promoted by the Malaysian government?

A. Use of biotechnology.
B. Use of new technology to raise sustainable development.
C. Incentives to attract entrepreneurs into eco-tourism.
D. Irrigation and drainage.

25. The primary source of income growth in Malaysia since 2000 is

A. capital.
B. technology.
C. total factor productivity
D. labour.

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26. Which of the following BEST explain why graduate unemployment occurs
persistently?

A. The education system produces too many graduates in humanities.

B. The products of the education system are not suf.hciently equipped with skills
sought after by the industry.
C. The education policy is the root cause to graduate unemployment.
D. The labour market system is overly demand driven.

27. Malaysia must ensure its education system produces human capital that is able
to

A. meet rising competition from the developed countries.

B. contribute to achieve the nation's drive to move from the middle-income to
high-income status.
C. meet the demand of the world's labor market.
D. increase social and private returns to facilitate upward social mobility.

28. Urban poverty in Malaysia has increased because of

A. government focus on rural areas.

B. concentration of foreign workers.
C. rising food prices.
D. high unemployment.

29. Which of the following is NOT a privatization method?

A. Bu~ltOperate Transfer (BOT).

B. Sale of Equity.
C. Management Contract.
D. Corporatization.

30. Which of the following BEST described the market structure in

telecommunications after it was privatized?

A. Perfect competition
B. Duopoly.
C. Oligopoly.
D. Monopoly.

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SECTION B: ESSAY QUESTIONS [40 Marks]
This section contains THREE (3) questions. Answer ALL questions.

Question 1

Explain FIVE (5) impacts of the ASEAN Free Trade Area (AFTA) on the automotive
industry.

[Total: 10 marks]

Question 2

a) List TWO (2) importance of tax to a government.

(5 marks)

b) Describe the importance of fiscal policy to stimulate the economy.

(10 marks)

[Total: I 5 marks]

Question 3

a Describe the role of government in public higher education.

(9 marks)

b Explain THREE (3) objectives of National Education Blueprint.

(6 marks)

[Total: 15 marks]

END OF QLlESTlONS

Dicetak oleh:

Unit Peperiksaan dan Pengijazahan

Bahagian Pengurusan Akadernik
Universiti Sains Islam Malaysia

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