A
A country produces at a point inside its PPC. This situation most likely indicates:
A. Scarcity of resources
B. Efficient use of resources
C. Underutilisation or inefficiency
D. Economic growth
C. Underutilisation or inefficiency
If a country moves along its PPC, the movement represents:
A. Economic growth
B. Opportunity cost
C. Unemployment
D. Technological progress
B. Opportunity cost
Which situation best explains a leftward shift of the PPC?
A. Increase in population
B. Improvement in technology
C. Natural disaster damaging resources
D. Increase in labour productivity
C. Natural disaster damaging resources
A concave PPC reflects:
A. Constant opportunity cost
B. Increasing opportunity cost
C. Decreasing opportunity cost
D. Zero opportunity cost
B. Increasing opportunity cost
If technology improves only in sewing machine production, the PPC will:
A. Shift outward equally for both goods
B. Rotate outward on the sewing machine axis
C. Shift inward
D. Become linear
B. Rotate outward on the sewing machine axis
Which scenario best illustrates scarcity?
A. Unlimited supply of goods
B. Wants exceeding limited resources
C. Equal distribution of income
D. Full employment of labour
B. Wants exceeding limited resources
A government deciding to subsidise rice farmers based on moral responsibility is an example of:
A. Positive economics
B. Microeconomic analysis
C. Normative economics
D. Opportunity cost analysis
C. Normative economics
Producing at a point outside the PPC is currently:
A. Unattainable due to scarcity
B. Attainable
C. Efficient
D. Sustainable
A. Unattainable due to scarcity
Which economic question is addressed when firms choose the cheapest production method?
A. What to produce
B. When to produce
C. For whom to produce
D. How to produce
D. How to produce
A linear PPC indicates:
A. Increasing opportunity cost
B. Decreasing opportunity cost
C. Constant opportunity cost
D. Inefficient production
C. Constant opportunity cost
If a country operates at full employment, it means:
A. All resources are equally distributed
B. Resources are fully and efficiently utilised
C. Scarcity does not exist
D. Opportunity cost is zero
B. Resources are fully and efficiently utilised
Which situation reflects inefficient use of resources?
A. Production on the PPC
B. Full employment
C. PPC shifting outward
D. Production inside the PPC
D. Production inside the PPC
Which statement reflects positive analysis?
A. Government should control prices
B. Inflation is harmful to society
C. Malaysia’s unemployment rate increased last year
D. Income inequality must be reduced
C. Malaysia’s unemployment rate increased last year
Which decision best represents the problem of “For whom to produce?”
A. Choosing labour-intensive production
B. Deciding the type of goods produced
C. Determining income distribution
D. Improving production technology
C. Determining income distribution
Which outcome best explains why PPC assumes full employment?
A. To eliminate scarcity
B. To increase inequality
C. To allow unemployment
D. To ensure efficient resource use
D. To ensure efficient resource use
Which factor does NOT cause a shift in the PPC?
A. Increase in population
B. Improvement in technology
C. Change in resource allocation
D. Natural disaster
C. Change in resource allocation
Which issue is most likely to arise in a socialist economic system?
A. Wasteful competition
B. Lack of economic freedom
C. High inflation
D. Consumer exploitation
B. Lack of economic freedom
Which situation best explains choice in economics?
A. Unlimited resources available
B. Producing beyond the PPC
C. Selecting one alternative over another due to scarcity
D. Government controlling prices
C. Selecting one alternative over another due to scarcity
Which combination of characteristics best describes a capitalist economic system?
A. Central planning and public ownership
B. Private ownership and price mechanism
C. No competition and government control
D. Equal income distribution
B. Private ownership and price mechanism
Which statement best explains why scarcity exists even in rich countries?
A. Wants are limited
B. Resources are unlimited
C. Income is equally distributed
D. Wants exceed available resources
D. Wants exceed available resources
Malaysia is best classified as a mixed economy because it:
A. Relies fully on market forces
B. Has no government intervention
C. Combines private enterprise with government control
D. Prohibits interest completely
C. Combines private enterprise with government control
If a country produces more consumer goods and fewer capital goods today, the long-term effect is likely:
A. Faster economic growth
B. Slower future production capacity
C. PPC shifts outward immediately
D. Increase in efficiency
B. Slower future production capacity
The prohibition of interest in an Islamic economic system aims to:
A. Encourage speculative activities
B. Promote ethical and real economic activities
C. Increase inflation
D. Reduce government intervention
B. Promote ethical and real economic activities
A socialist economy emphasises production mainly based on:
A. Consumer sovereignty
B. Market demand
C. Profit maximisation
D. Basic needs of society
D. Basic needs of society
Which weakness is most commonly associated with capitalism?
A. Lack of incentives
B. Absence of competition
C. Income inequality
D. Low economic freedom
C. Income inequality