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Define all of the following terms and ideas accordingly

-Fundamentals of Economics

-Definition and scope of economics

-Scarcity, choice, opportunity cost

-Preferences - ranked and subjective

-Marginal units and the "diamond-water paradox"

-Diminishing marginal utility

-Individual demand, individual supply

-market demand, market supply

-equilibrium, Qs=Qd

-Broken Window Fallacy

-Micro Review

-Price and quantity

-Change in quantity demanded/supplied vs. change in demand/supply

-Consumer and producer surplus

-Surpluses and shortages

-Dead Weight Loss

-Government interventions

-Taxes, price ceilings, price floors, minimum wage

-Binding vs. non-binding

-Production Possibilities frontiers

-Attainable vs. unattainable points

-Efficient vs. inefficient points

-Linear vs. bowed outward PPFs

-Tradeoffs/opportunity costs

-Absolute vs. comparative advantage

-Specialization and the gains from trade

-Macro Measurements

-Nature of production

-Factors of production

-Entrepreneurship

-Profit=Revenue-Cost

-Circular flow model

-Two agents - Households/individuals and firms

-Two markets - final goods/services and factors of production

-National income/output and GDP

-GDP definition, issues, real vs. nominal, units

-Price level and CPI

-No common unit for prices, indexing

-Inflation adjustments and measuring the rate of inflation

FUNDAMENTALS OF ECONOMIES RTOCTOBER 3 20 34. Countries engaged in international trade specialise in production based on A. relative levels of GDP B. comparative advantage C. relative exchange rates D. relative inflation rates 35. If a Malaysian importer can purchase $$10,000 for RM20,0:00, the rate of exchange is A. RMI = $52 in Malaysia B. RM2 - 531 in Malaysia C. RMI = $52 in Singapore D. RM0.5 - 851 in Singapore 36. The government of Malaysia decided not to allow more than 50,000 foreign cars to be imported. What type of trade restriction imposed by Malaysian government? A. Tariff B. Quota C. Nontariff Barrier (NTB] D. Voluntary Export Restraint (VER) 37. A country sells move to foreign countries than it buys from them. It has A. a trade surplus and positive net exports D. a trade surplus and negative net exports C. a trade deficit and positive net exports D. a trade deficit and negative net exports 38. If the ringgit per pound moves from RM5.90 to RM5.40, the pound is said to have and the ringgit to have A. depreciated: appreciated B. appreciated: appreciated C. appreciated; depreciated D. depreciated; depreciated 39. When exports of the UK goods increase, this the demand for pound and at the same time foreign currencies. A. increases, increases the supply of B. decreases, increases the supply of C. increases; decreases the supply of D. increases, increases the demand for Continued... FUNDAMENTALS OF ECONOMIES 40. If a Malaysian investor purchased a factory in Vietnam, this transaction will be recorded in the of the Malaysia's Balance of Payments. A, capital account B. financial account C. current account D. goods and services account