UNIVERSIT MALAYA

UNIVERSITY OF MALAYA

PEPERIKSAAN PERTENGAHAN TAHUN IJAZAH SARJANA MUDA PENTADBIRAN

PEPERIKSAAN PERTENGAHAN TAHUN IJAZAH SARJANA MUDA PERAKAUNAN

SESI AKADEMIK 2012/2013

: SEMESTER 1
: SEMESTER I

CBEB1107
CBEB1107

:
:

EKONOMI PENGURUSAN I
MANAGERIAL ECONOMICS I

April 2013
April 2013

MASA: 1 Jam
Time: 1 Hour

ARAHAN KEPADA CALON: INSTRUCTIONS TO CANDIDATES : Calon-calon dikehendaki menjawab semua soalan.
Candidates are required to answer all questions.

Kertas soalan ini mengandungi 25 soalan.

Setiap soalan membawa 1 markah bagi markah keseluruhan 25 markah.

(Kertas soalan ini mengandungi 25 soalan dalam 9 halaman yang dicetak) (This paper consists of 25 questions on 9 printed pages)

1) Consider the market for peanut butter. If there is a decrease in the price of deli turkey slices (a substitute in consumption for peanut butter) along with a decrease in the price of peanut brittle (a substitute in production for peanut butter), the A) equilibrium price of peanut butter definitely falls. B) equilibrium quantity of peanut definitely decreases. C) equilibrium quantity of peanut butter definitely increases. D) equilibrium price of peanut butter definitely rises. 2) Which of the following best defines economics? A) Economics teaches how to limit our wants. B) Economics studies how to choose the best alternative when coping with scarcity. C) Economics helps you earn as much money as possible. D) Economics analyzes all aspects of human behavior in general individual level and at the industry level. 3) Which of the following is a microeconomic topic? i. K-Mart's decision to close stores that are not making a profit ii. Home Depot's choice to hire more full-time employees because its sales increased iii. Delta Airlines changes its fares. A) i and ii B) ii and iii C) i and iii D) i, ii, and iii 4) You have chosen to take a trip during spring break. If you had not gone, you would either have worked at a temporary job or studied for exams. The opportunity cost of your trip is A) the wages you would have earned from working. B) the lower grade earned by not studying. C) the wages you would have earned from working and the lower grade earned by not studying. D) We cannot determine what the opportunity cost is without knowing which alternative, working or studying, you would have preferred. 5)

The figure above shows the demand curve for Starbucks latte.

Suppose Starbucks currently charges RM3.25 per cup for its latte. If Starbucks lowers the price to RM3.00 per cup, based on the demand curve in the figure above, its total revenue will ________ because the demand for Starbucks latte is ________ over this price range. A) increase; elastic B) decrease; elastic C) increase; inelastic D) increase; unit elastic 6) Which of the following statements is a positive statement? A) Our country must increase military spending. B) There should be a computer in every elementary school classroom. C) We need to spend less on luxury items for the wealthy, and more on necessities for the less fortunate. D) Online shopping increased by 50 percent this Christmas season. 7) Normative statements i. describe how the world is. ii. describe how the world ought to be. iii. depend on people's values and cannot be tested. A) i only B) ii only C) i and ii D) ii and iii 8) If an economy cannot produce more of one good without producing less of another

good, this implies that which of the following has been achieved? A) allocative efficiency B) minimum marginal cost C) PPF efficiency D) production efficiency 9) When production efficiency does NOT occur, i. an economy is producing at a point within its PPF. ii. there are unemployed resources. iii. allocative efficiency can not occur. A) i and ii B) iii only C) i and iii D) i, ii, and iii 10) Consider a production possibility frontier with books and tables. A combination of 1000 books and 500 tables is on the frontier. Which of the following are true? i) Production of 700 books and 400 tables is attainable but inefficient. ii) Production of 1000 books and 600 tables is unattainable. iii) Production of 500 books and 1000 tables is inside the frontier. A) i and ii B) i, ii and iii C) i and iii D) ii and iii 11) In stores, it is common to find seasonal products marked down when the season ends. What explains this behavior? A) The law of demand is being used to increase the quantity demanded. B) The store is trying to increase its customers' demand for the product. C) The store manager must be trying to drive away customers by selling low quality products. D) The store is trying to increase its consumer's incomes by increasing their purchasing power.

12) Which of the following is true regarding demand? i. Demand is the relationship between quantity demanded and the price of a good when all other influences on buying plans remain the same. ii. Demand refers to one quantity at one time. iii. "Demand" and " quantity demanded" are the same thing. A) i only B) ii only C) i and ii D) i and iii

13) A popular dinner among college students today is sushi, green tea, and wasabi dip so these foods are complements. If the price of green tea increases and the price of wasabi dip increases, what would be the effect on demand for sushi at lunch? A) The demand for sushi would decrease. B) The demand for sushi would be unaffected, but the price would increase. C) The demand for sushi could increase or decrease. D) The demand for sushi would be unaffected, but the price would decrease. 14) Which of the following increases the supply of a product? A) lower prices for the resources used to produce the product B) some producers going bankrupt and leaving the industry C) a higher price for the product D) an increase in the expected future price of the product 15) Suppose over the next several years the productivity of firms producing electric cars improves dramatically. The advance in productivity leads to A) a decrease in the supply of electric cars so that the supply curve shifts leftward. B) a decrease in the supply of electric cars so that the supply curve shifts rightward. C) an increase in the supply of electric cars so that the supply curve shifts leftward. D) an increase in the supply electric cars so that the supply curve shifts rightward. 16) A surplus of cardboard boxes means that A) at the current price of a cardboard box, the quantity demanded exceeds the quantity supplied. B) at the current price of a cardboard box, the quantity demanded is less than the quantity supplied. C) the current price of a cardboard box is less than the equilibrium price. D) at the current price of a cardboard box, the quantity demanded equals the quantity supplied and the price will fall to restore the equilibrium. 17) Suppose the current price of a pound of steak is RM12 per pound and the equilibrium price is RM9 per pound. In this case, there is a A) shortage, so the price falls and quantity demanded increases. B) surplus, so the price falls and quantity demanded increases. C) shortage, so the price rises and quantity demanded decreases. D) surplus, so the price rises and quantity demanded increases. 18) Suppose the equilibrium quantity of movie tickets is 1000. If the demand curve shifts ________, the equilibrium quantity of movie tickets will ________. A) rightward; increase B) rightward; decrease C) leftward; increase D) rightward; not change Answer: A 19) For consumers, taco chips and salsa are complements. If the price of salsa rises, what is the effect on the equilibrium price and quantity of taco chips?

A) The equilibrium price of taco chips falls and the equilibrium quantity decreases. B) The equilibrium price of taco chips rises and the equilibrium quantity decreases. C) There is no change in the equilibrium price of taco chips and the equilibrium quantity increases. D) The equilibrium price of taco chips could rise, fall, or stay the same and the equilibrium quantity increases. 20) Which of the following is true? I. The demand for a good is elastic if when its price changes, the percentage change in the quantity demanded exceeds the percentage change in price. II. Price elasticity of demand equals the percentage change in price divided by the percentage change in the quantity demanded. III. If demand is price inelastic, a rise in price leads to a decrease in total revenue. A) Only I B) Only II C) Only III D) I and II 21) A ________ curve means that ________. A) horizontal demand; a change in price does not change total revenue B) horizontal demand; the elasticity of demand is less than 1 C) horizontal supply; the elasticity of supply is infinite D) horizontal supply; the elasticity of demand is infinite 22) The ABC Computer Company spends a lot of money for advertising designed to convince you that their personal computers are superior to all other personal computers. If the ABC Company is successful, the demand for ABC personal computers A) and the demand for other firms personal computers will become less price elastic. B) and the demand for other firms personal computers will become more price elastic. C) will become more price elastic but the demand for other firms personal computers will become less price elastic. D) will become less price elastic but the demand for other firms personal computers will become more price elastic.

23) Which of the following statements is correct? i. The demand curve shows the maximum price people are willing to pay for a given quantity of the good. ii. The maximum price a consumer is willing to pay for an additional unit is the marginal benefit of that unit. iii. Value is what a consumer receives and price is what a consumer pays. A) i only B) ii only C) iii only D) i, ii, and iii

24) When output is less than the efficient level, A) consumers are willing to pay more for another unit than it costs to produce the unit. B) the amount consumers are willing to pay equals the cost of production. C) the cost of production is greater than the price consumers are willing to pay. D) the production costs can't be measured. 25) What is the impact of a government subsidy to producers? A) Less is produced relative to the efficient level, creating a deadweight loss. B) More is produced relative to the efficient level, creating a deadweight loss. C) Producer surplus is increased, which creates a larger consumer surplus. D) Producers are able to sell the product at a higher price.