CONFIDENTIAL

UNIVERSITI PENDIDIKAN SULTAN IDRIS

FINAL ASSESSMENT
SEMESTER 2 SESSION 2020/2021

CODE : PET3023 COURSE : MICROECONOMICS

INSTRUCTIONS

1. Please read the assessment instructions carefully.

2. Students are required to prepare the answer scripts based on the predetermined the final
assessment.
3. Students are required to submit their answer scripts to the lecturers within the specified
time.

This question paper consists of 6 printed pages including front page

PROGRAMME :_____________________________________________________________

YEAR : _______ CLASS GROUP : _______

REGISTRATION NO : ____________________________

IDENTITY CARD NO :

STUDENT NAME: __________________________________________________________

PHONE No.:___________________Email:_______________________________________

LECTURER : ______________________________________________________________

CONFIDENTIAL
PET3023: Microeconomics / Mikroekonomi 2

INSTRUCTIONS

1. All students in PET 3023 course will sit for the Final Assessment paper for 2 DAY or 48
HOURS from 29 June 2021 (10:00 AM) until 1st July 2021 (10:00 AM).

2. During the Final Assessment examination;

i. You MAY refer the textbook, notes or any materials handed out in class related to this
course.
ii. You MAY NOT open, refer, search and consult any external resources. (i.e.
Internet / Google Search engine / interact with colleagues or any other person)

3. The answers for the Final Assessment ONLY can be presenting in TYPE WRITING
forms.

4. Submission of the answers must be doing in two formats; softcopy and hard copy.

i. SCAN and UPLOAD your answer in MYGURU

(ASSIGNMENT part) - ACCORDING TO YOUR INDIVIDUAL GROUP

Upload Time: 10 am on 1st July 2021

(After Final Assessment hours is over)

ii. POSTAGE/ COURIER: The posting process must be before 5pm on the due date
(July 1st, 2021) (proof of postage slip via whats-app group)

Address: Dr. Asmawi Haji Hashim,

No 9 Parcel 19E, Jalan Meranti 2,
PROTON CITY
35900 Tanjung Malim Perak

Delivery: Expected to be deliver within THREE (3) days after the Final Assessment is
over.

[NOTE: LATE SUBMISSION (SOFTCOPY) IS NOT ACCEPTED]

PET3023: Microeconomics / Mikroekonomi 3

Instructions: Answer all questions. [40 marks]

1. a. Cattletown Steakhouse is a restaurant known for its steak meal and hamburger basket.

i. Using the below graph draw a production possibility frontier exhibiting

increasing opportunity costs.
[1 mark]

ii. On the graph label the areas that are attainable and unattainable.
[1 mark]

iii. On the graph label a point where resources are fully employed and one where
they are underemployed.
[2 marks]

iv. Suppose the patty machine (used to produce hamburgers) breaks down,
increasing the time it takes to produce a hamburger basket. Depict this situation
on the production possibility frontier.
[1 mark]

[See Next Page

PET3023: Microeconomics / Mikroekonomi 4

b. Given the following production possibilities of Maland and Beland:

Maland Beland

Oil 20 8
Personal Computer 20 16

Calculate the absolute advantage and comparative advantage of Maland and Beland.
[5 marks]

2. Suppose a consumer has an income of RM 500 and faces prices PX = RM5 and PZ =
RM10.

a. Write the equation for the budget constraint.

[2 marks]

b. Draw the budget constraint, placing good X on the horizontal axis. Label it BC.
[3 marks]

c. What is the slope of BC?

[2 marks]

d. Suppose income decreases to RM300. Draw the new budget constraint and label its RS.
[3 marks]

[See Next Page

PET3023: Microeconomics / Mikroekonomi 5

3. The following table shows the cost data of a firm.

Output Total Cost

(Units) (RM)

0 200
1 400
2 600
3 900
4 1200
5 1800
6 2800

a. Define the term production and cost of production.

[1 mark]

b. Calculate:
i. Total Fixed Cost
ii. Total Variable Cost
iii. Average Fixed Cost
iv. Average Variable Cost
v. Average Total Cost
vi. Marginal Cost at each level of output
[6 marks]

c. Briefly describe the relationship between the average total cost and the marginal cost.

[3 marks]

[See Next Page

PET3023: Microeconomics / Mikroekonomi 6

4. a. Define what the price ceiling is and why government impose that in the economy?
[2 marks]

b. How price ceilings affect market outcomes for the case of not binding?
[2 marks]

c. When the Covid-19 pandemic hits, chicken sellers are likely to raise chicken prices due
to rising costs. The government had to act by setting a ceiling price for the supply of
chicken in the market. The original price of chicken is RM6 per kilo. At that time, it is
assumed that the equilibrium quantity is 1000 chickens. But the government has set the
ceiling price at RM8 only. Draw and briefly explain a curve that illustrates the situation
where ceiling pricing takes place in the sale of chicken in the market.
[6 marks]

END OF QUESTIONS