CONFIDENTIAL, ‘Student ID No: ... ‘Student IC No: ... Programme: UNIVERSITI KUALA LUMPUR MALAYSIAN INSTITUTE OF INDUSTRIAL TECHNOLOGY FINAL EXAMINATION JULY 2012 SEMESTER SUBJECT CODE : JLD 20103 SUBJECT TITLE : PRINCIPLES OF ECONOMICS LEVEL : DIPLOMA TIME / DURATION : 9,00 AM — 12.00 PM (3 HOURS) DATE : 26 NOVEMBER 2012 INSTRUCTIONS TO CANDIDATES 1. Please read the instructions given in the question paper CAREFULLY. 2. This question paper is printed on both sides of the paper. 3. This question paper consists of TWO (2) sections. Section A and B. 4, Answer ALL questions in Section A. Answer TWO (2) questions in Section B. §. Please write your answers on the answer booklet provided. ‘THERE ARE 3 PAGES OF QUESTIONS, EXCLUDING THIS PAGE.JULY 2012 CONFIDENTIAL, SECTION A (Total: 60 marks) INSTRUCTION: Answer ALL questions. Please use the answer booklet provided. Question 1 Economic system in a particular country will give an overall picture on how economic aotivities take place and solve certain economic problems such as what product to produce, how to produce the product and ete. Discuss the FIVE (5) merits and demerits of mixed ‘economic system. [15 Marks] Question 2 Equilibrium refers to the situation where total quantity demand is equal to total quantity supply. Draw and explain how such phenomena affect the changes in price and quantity of the market equilibrium:- (a) Increase in demand curve, the supply curve remains the same. 15 Marks} (b) Decrease in supply curve, the demand curve remains the same. [5 Marks] (6) Increase in supply curve, the demand curve remains the same. [5 Marks] Question 3 Cost of Production is referring to the total sum of money required for the production of a specific quantity of output. Please explain the following cost of production concept. Provide a relevant diagram or graph to support the explanation {a) Total Cost (TC) [5 Marks] (b) Total Variable Cost (TVC) [5 Marks] (c) Marginal Cost (MC) [5 Marks] JLD 20103 PRINCIPLES OF ECONOMICS 1JULY 2012 (CONFIDENTIAL, Question 4 Peat ene Peak ae Level telugu Figure 1: Economic Business Cycle Figure 1 above shows the Economic Business Cycle. Present the concept of that business cycle and explore each of the labels stated in the diagram. [15 Marks] SECTION B (Total: 40 marks) INSTRUCTION: Answer only TWO (2) questions Please use the answer booklet provided. Question 1 (a) Construct the diagram for 4 sector economy. Provide brief explanation on each of the sector. [10 marks] (b) National Income Accounting is very important to the government as it helps to identify sources of income and heads of expenditure. Describe FIVE (5) uses of national income. [10 marks] Question 2 (a) Demand refers to the desire of consumer to obtain a quantity of goods/services. Briefly discuss FIVE (5) determinants of demand [10 marks] (b) _ Discuss FIVE (5) determinants of price elasticity of demand [10 marks] JLD 20103 PRINCIPLES OF ECONOMICS 2JULY 2012 CONFIDENTIAL, Question 3 (a) Explain the differences between fixed inputs and variable inputs in the production capacity. Provide relevant examples. [10 marks] (b) Explain and compare the different stage of production. [10 Marks} END OF QUESTIONS JLD 20103 PRINCIPLES OF ECONOMICS