KOLEJ UNIVERSITITUNKU ABDUL RAHMAN FACULTY OF BUILT ENVIRONMENT ACADEMIC YEAR 2020/2021 SEPTEMBER/OCTOBER FINAL E-ASSESSMENT BIBE1033 PRINCIPLES OF ECONOMICS THURSDAY, 1 OCTOBER 2020 ‘TIME: 9.00 AM ~ 11.00 AM (2 HOURS) BACHELOR OF CONSTRUCTION MANAGEMENT AND ECONOMICS (HONOURS) BACHELOR OF QUANTITY SURVEYING (HONOURS) Instructions to Candidates: Answer all questions, lll questions carry equal marks. ‘You are required to submit handwritten answers. This is an open book final online assessment. You MUST answer the assessment questions on your own without any assistance from other persons. ‘You must submit your answers within the following time frame allowed for this online assessment: © The deadline for the submission of your answers is half an hour from the end time of this online assessment, Penalty as below WILL BE IMPOSED on students who submit their answers late as follows: ‘© The final marks of this online assessment will be reduced by 10 marks for answer scripts that are submitted within 30 minutes after the deadline for the submission of answers for this online assessment. © The final marks of this online assessment will be downgraded to zero (0) mark for any answer scripts that are submitted after one hour from the end time of this online assessment. Extenuation Mitigating Circumstance (EMC) encountered, if any, must be submitted to the Faculty/Branch/Centre within 48 hours after the date of this online assessment. All EMC applications ‘must be supported with valid reasons and evidence. The UC EMC Guidelines apply. Student’s Declaration of Originality: By submitting this online assessment, I declare that this submitted work is free from all forms of plagiarism and for all intents and purposes is my own properly derived work. I understand that I have to bear the consequences if I fail to do so. ~ This question paper consists of 4 questions on 4 printed pages.BIBE1033 PRINCIPLES OF ECONOMICS, estion 1 a) Table QI shows the demand and supply of Tile X in the market in year 2019, ‘Table Q1: Demand and Supply of Tile X in 2019 Price (RM) | Quantities demanded (piece) | Quantities supplied (pieve) 5.00 1,000 400 5.50 900 300 6.00 +800 600 6.50 700 700. 7.00 600 800 7.50 500 900 (@ Draw the demand and supply graphs with appropriate labels. Gi) Specify the equilibrium price and quantity. (8 marks) (4 marks) b) In Budget 2020, the threshold for foreigners to purchase urban high-rise properties has reduced from RM 1 million to RM 600,000 (The Star, 2019) () Briefly describe the rationale of setting threshold prices for foreigners to purchase properties. (7 marks) (i) Discuss ONE (1) plausible pro and ONE (1) con of having a lowered threshold price for foreigners to purchase urban high-rise properties. (6 marks) [Total: 25 marks} Question 2 8) Classify the following as a “government-enforced barrier to entry”, “a barrier to entry that is not government enforced”, or “a situation that does not involve a barrier to entry”. Support you classification with a brief explanation. @ A patented invention of concrete mix. (3 marks) (i) A popular but easily shared formula of Do-It-Yourself cement mix for small-scale renovation, (iii) A well-established reputation for slashing prices in response to new entry, G marks) (3 marks) (iv) A country passes a law that all e-hailing vehicle drivers must pass a driving safety test and have insurance, (¥) Owning a spring that offers very pure water. (3 marks) (3 marks) (vi) An industry where economies of scale are very large compared to the size of demand in the market. (G marks) ‘This question paper consists of 4 questions on 4 printed pages.BIBE1033 PRINCIPLES OF ECONOMICS Question 2 (Cont'd) b) ») °) Finms in a perfectly competitive market are said to be “price takers” - that is, once the market determines an equilibrium price for the product, firms must accept this price. (@ Ifyou sell a product in a perfectly competitive market, but you are not happy with its price. Comment on whether you would raise the price. (B marks) Gi) Discuss ONE (1) strategy to achieve higher profit (4 marks) (Total: 25 marks] whether the following would be counted as “unemployed”, “employed” or “out of labour force” in the Malaysian employment statistics survey. (A husband willingly stays home with children while his wife works. (2 marks) (ii) A manufacturing worker whose factory just closed down, (2 marks) ii) A retiree. (2 marks) (iv) Someone who has been out of work for two years but keeps looking for a job. (2 marks) (Someone who hates her present job in Company A and is actively looking for another one while still working in Company A. (2 marks) (vi) Someone who takes a part time job because she could not find a full time position. (2 marks) A country with a population of eight million population has five million employed, 500,000 ‘unemployed, and the rest of the population is out of the labor force. (Calculate the amount of labour force available in the country, (2 marks) (ii) Calculate the unemployment rate, (4 marks) Discuss TWO (2) complications in measuring unemployment in a country. (7 marks) [Total: 25 marks} This question paper consists of 4 questions on 4 printed pages.TBE1033 PI MI Discuss the following measures introduced by the Malaysian government in the midst of economy slowdown during the COVID-19 pandemic. a) THREE (3) fiscal measures. (13 marks) b) THREE (3) monetary measures. (12 marks) [Total: 25 marks) This question paper consists of 4 questions on 4 printed pages.