4/22/2020 FPEC 1034 Basic Economic Principles (E-assessment)

FPEC 1034 Basic Economic Principles (E-

assessment)
This question paper consists of 4 questions. Answer ALL questions.

Time : 9am to 10.30am

* Required

1. Email address *

2. Name (as in MyKad) *

3. Student ID Number (eg: 20WPF00001) *

4. Classs (eg: FAC 1101) *

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4/22/2020 FPEC 1034 Basic Economic Principles (E-assessment)

5. Question 1(a)(i) Based on the table below, calculate the average cost when the 5 points
firm produces 2 units of output. *

6. Question 1(a)(ii) Based on the table above, calculate the marginal cost when 5 points
the firm produces 2 units of output. *

7. Question 1(a)(iii) Based on the table above, calculate the total variable cost 5 points
when the firm produces 2 units of output. *

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4/22/2020 FPEC 1034 Basic Economic Principles (E-assessment)

8. Question 1(b) Distinguish between commodity money and fiat money. * 10 points

9. Question 2(a)(i) Explain the law of diminishing returns. * 5 points

10. Question 2(b)(i) Briefly describe external diseconomies of scale. * 5 points

11. Question 2(b)(ii) Explain THREE(3) reasons for external diseconomies of 15 points
scale. *

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4/22/2020 FPEC 1034 Basic Economic Principles (E-assessment)

12. Question 3(a)(i) State THREE(3) types of inflation. * 6 points

13. Question 3(a)(ii) Describe the effect of inflation on savings. * 9 points

14. Question 3(b) Explain the impact of a currency depreciation on a country’s 10 points
national debt. *

15. Question 4(a)(i) State THREE(3) tools that can be used by the central bank to 6 points

solve the macroeconomic problems. *

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4/22/2020 FPEC 1034 Basic Economic Principles (E-assessment)

16. Question 4(a)(ii) Explain how the central bank solves the inflationary 9 points
problem by using the bank rate. *

17. Question 4(b) Explain the effect of a lower tax rate on aggregate demand 10 points
and unemployment rate. *

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