Principle of Economic Essay Sample

1. I ) What is meant by positive analysis and normative analysis?

two ) Classify each of the undermentioned statements as positive or normative. Explain.

a ) Society faces a short-term tradeoff between rising prices and unemployment. B ) A decrease in the rate of money growing will cut down the rate of rising prices. degree Celsiuss ) Bank Negara Malaysia ( BNM – Central Bank ) should cut down the rate of money growing. vitamin D ) Society ought to necessitate public assistance receivers to look for occupations. vitamin E ) Lower revenue enhancement rates encourage more work and more economy.

2. Classify the undermentioned subjects as associating to microeconomics or macroeconomics.

a ) A family’s determination about how much income to salvage. B ) The consequence of authorities ordinances on car emanations. degree Celsius ) The impact of higher national economy on economic growing. vitamin D ) A firm’s determination about how many workers to engage. vitamin E ) The relationship between the rising prices rate and alterations in the measure of money.

3. Pull a circular-flow diagram. Identify the constituents of the theoretical account that correspond to the flow of goods and services and the flow of Ringgit Malaysia ( RM ) for each of the undermentioned activities.

a ) Selena pays a shopkeeper RM1 for a quart of milk. B ) Stuart earns RM4. 50 per hr working at a fast-food eating house. degree Celsius ) Shanna spends RM30 to acquire a haircut. vitamin D ) Sally earns RM10. 000 dividend from her 10 % shareholdings in Acme Industrial.

Exam manner Questions

1. Should economics be considered a scientific discipline? Why or why non? ( 5 Markss )

2. a ) Differentiate between macroeconomics and microeconomics. ( 4 Markss )

B ) What is meant by scarceness? ( 2 Markss )