Chapter 1: The Concept of Economics

Choice is needed because of:

• scarcity

• factors of production

• opportunity cost

•        entrepreneurs

Malaysia is arguing about whether we should increase the amount of BSH next year. This is closely related to the economic concept of

• scarcity

• choice

• opportunity cost

• utility

Microeconomics is a division of economics that deals with

• Monetary supply of an economy

• The aggregate demand

•   The purchasing behaviour of consumers

• The inflation and unemployment

Macroeconomics is a division of economics that deals with

• The marketing strategies of a firm

• The production efficiency of a firm

• The household’s choice on their daily live

• The investment-saving gap of an economy

Which one of the following is NOT a factor of production

•   Land

•     Labour

•   Entrepreneur

• Government

Malaysia is providing incentive to draw talent to Malaysia. When these talents are employed they contribute to the production process. The talents are considered as a factor production of

•     Land

•     Labour

•      Entrepreneur

• Capital

Below are the three main economic choices EXCEPT:

•   What should be produced?

•   How should it be produced?

•   For whom should it be produced?

• Why it is produced?

Which of the following is a statement related to positive economics?

• Malaysia government should increase the amount of BSH

• The increase in interest rate will stimulate the real estate property market

•    Public transport in Malaysia needs to improve to provide a better service

•   We should ensure that income inequality is not widening

Macroeconomics is a division of economics that deals with

• the overall performance and behavior of the economy as a whole

• the analysis of market supply and demand

• the examination of business financial statements

• the study of individual consumer behavior

Ahmad decided to further his study in Universiti Utara Malaysia (UUM). The opportunity cost for him to further study in UUM is

• The opportunity cost is the total cost of studying in UUM.

• The opportunity cost is the value of the next best alternative.

• The opportunity cost is the cost of tuition in UUM.

• The opportunity cost is the time spent studying in UUM.