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CONFIDENTIAL 7 BMIJAN 2012/EC0162/104 QUESTION 2 2) The following table shows the production of rice and computer in an economy. Combination | Computer ‘Opportunity cost | (unit) Aca 0 6 B 1 [ Brice c 2 [ A vier D 3 I € rice E 4 B vice = F 5 12 vices ) Calculate the opportunity cost of producing computer. (2 marks) ji) Sketch a Production Possibilities Curve (PPC). Indicate point Z to show inefficient point and point Y to show resource scarcity (3 marks) il) Using the answer in part show the changes in PPC to indicate the effect of improvementin technology oaucton of computer. (1 mark) (© Hak Cipta Universiti Teknologi MARA, CONFIDENTIAL ‘CONFIDENTIAL Gs BMIOCT 2012/ECO1201108113/107 PART B QUESTION 1 ‘The diagram below shows the production possibilities curve for a nation producing cell phones and garden tractors, Cell Phones (million) 25 Garden Tractors (million) a) _ Define production possibile curve PPC throw combnahin «| 2 goods prelec vaing — (mark) b) Referring to the diagram above, which combinations Sopra aures /eelindogy i) fallemployment. ay, Cr D ii) inefficient point, F iit) unattainable point. F (marks) ©) Caloulate: i) the opportunity cost of producing 10 units of garden tractors. 35 eel pronto ii) the opportunity cost of increasing the production of garden tractors from 4 units to 8 units. 0 all pm * (2 marks) (© Hak Cipta Universit Teknologi MARA CONFIDENTIAL CONFIDENTIAL, 6 BMIDEC 2014/ECO162/104 PARTB. QUESTION 1 ‘The table below shows a set of hypothetical production possibilities for a nation. Combination Furniture (000 units) | Fruits (000 kg) A 0 100 B 20 30 I c L 40 70 I D 80 a 40. [ E 80 i 0 2) By using a graph paper, plot these production possibilities (3 marks) b) Calculate the opportunity cost of 9 ~ Fo, 000 i) producing 40,000 unis offumitue, 3/60 leg frets (100,00 srk 7), i) producing 70,000kg of fits. 4e,200 usb fuvuder ($A 070 — Ko, Gv). (2 marks) c) Label point M which lies inside the curve. Is this an inefficient point? Why? No- comb M close) nt use vesmres effeventty Cwou * (1.5 marks) ~~ d) Label point G which lies outside the curve. State the significance of this point. G nat posnble duc fo Scewre regunrdo - (1 mark) ©) State two (2) factors that can shift the production possibilities curve. (2 marks) + ewonvnc He, a nal rt desler + new Vegumaes Fa cule: ) E 4) 40 M 4 Srl re (Hak Cipta Universit Teknologl MARA CONFIDENTIAL CONFIDENTIAL, 7 | BMIAPR 2009/ECO120/108 QUESTION 2 ‘The following diagram shows the production possibilities curve for a country. Palm Oil ay Potatoes @) _ State the implication of points W, X and Y as shown in the diagram. (3 marks) b) Identify @ factor whereby the country can produce at point Y. (1 mark) ©) Give two (2) problems that arse Hf the country chooees to produce a pont x. (2 marks) cost faced by the country. @) Determine the type of opportuni ————— (1 mark) e) List two (2) assumptions needed to construct the production possibility curve. (A mark) v) Comb Y¥ admirable q tHe counhy t aes mqeeien cay fond new Vibowres. oy dev mW leslaney w> full uency yo oF 6) X D wnevaploy ment waste cI veRdW Cha * a) inet oper 2). produce 2 goods only uw ful affrueyy : (© Hak Cipta Universit Teknologi MARA CONFIDENTIAL

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