Example final exam: Chapter 1

Example of final exam questions

"Chapter 1"

Section A; Multiple choice questions.

1. Scarcity is a problem: 

A. measured by the amount of goods available.

B. of the poor, but not the rich.

C. because human wants are unlimited while resources are limited.

D. only in industrialized economies

           

2.  Which of the following is a characteristics of capitalism 

A.  an economic system characterized by private ownership of resources and market.

B. an economic system that include a mixture of command and market system.

C. a system that answers the what, How, and For Whom question by central authority.

D. an economic system that follows the syariah.           

3. Which of the following is not a resource? 

A. Land.

B. Labor.

C. Money.

D. Capital.

            

4. The analysis of the behaviour decision-making units is the definition of : 

A. macroeconomics.

B. microeconomics.

C. positive economics

D. normative economics.

5.  Which of the following is a normative statement? 

A.  The government must lower the prize of essential goods to decrease the inflation.

B.  the price of this shoes is RM50.

C.  I get grade A in macroeconomics exam.

D.  An increase in the collage tuition fees will cause a few of students to apply for collage.

6.   Which of the following might be considered to be a characteristic of a planned economy? 

A.    There is no incentive for people to work hard.

B.     Goods and services produced reflect consumer sovereignty.

C.     Price is relatively unimportant as a means of allocating resources.

D.    All income is completely evenly distributed.

Section B;

1.

(a) Differentiate between microeconomics and macroeconomics. (4 marks) 

(b)  Define the Production Possibilities Curve (PPC). State fours (4) assumptions to illustrate the PPC.       (6 marks)                    

     (c)        State five characteristics of free market economic system.    (5 marks) 

                                                                                                                         (Total: 15 marks)

Section C; Quantitative Question

Combination	motorcycles (thousands)	laptop (thousands)
A	30	0
B	26	1
C	21	2
D	15	3
E	8	4
F	0	5

1. The following table shows the production possibilities for motorcycle and laptop.

(a)     Fill in the opportunity cost(motorcycles forgone) of producing the first through the fifth laptops.   (2 marks)

(b)   Referring to above table, draw the production possibility curve. (4 marks)

(c)    Based on the diagram (b), explain the concept of scarcity, choice and opportunity cost.    (6 marks)

(d)    Between which points (combinations) is the opportunity cost per thousands unit of laptops the highest?  (2 marks)        

(e)    Label point Y inside the curve. Explain why this is inefficient point. (3 marks)

(f)    Label point Z outside the curve. Explain why this is an unattainable point. (3 marks)

(g)    Based on the diagram, identify all efficient points and explain why these points are efficient.   (5 marks)

(h)   Does this production possibilities curve reflect the law of increasing opportunity costs?  (3 marks)

(i)    What is the shape of the production possibilities curve?  (2 marks)
                                                         (Total: 30 marks)