1. Economics Topic 1.0 Exercise
1. Economic is a study of how individual and economics make decisions about the use and
allocation of their scarce resources.
2. Scarce resources are resources with an available quantity less than its desired use. Example;
oil and land.
3. To ensure resources are not used in a wasted manner.
4. Microeconomics & macroeconomics. Microeconomics study of how individual household
and business function or behave. Example; how much pocket money should I spent for my
lunch today? Macroeconomics studies the working of an economy as a whole. Example;
how much did Malaysia’s rate of inflation increase.
5. Positive Economics & Normative Economics. Positive Economics understand how economic
system work by without making judgments. Normative Economics attempts to find out the
economic outcome is good or bad, and whether they can be made better.
6. Opportunity Cost is the benefit you lose when choosing one decision over another.
7. - could not enjoy the fun
- Can’t get a good result in exam
- Another research
- Can’t have dinner with family
8. A)
At point C, Product A produce 4 units, and Product B produce 2 units.
Trade Off
B)
- Using outdated technology
- Scarce of labour / human resources
- Insufficient capital
- Lack of information resources
- Scarce physical resources
- Natural disaster
C)
- Increase Labour
-Inject more capital
2. D)
- PPC A is year 2013
- PPC B is year 2014
9. People respond with a reason. If something benefits oneself, the people will sure obey or do it.
Example; If the supermarket sets a new rule, states that whoever brings their own recyclebag during
shopping to carry their goods, can get discount.
10. Free market which individuals control production and allocation decisions through supply and
demand. Planned Economy rely centralized government to decisions. Mixed Economy featuring
characteristic of both planned and market economies.
