Programme : Bachelor of Business Administration

Course Title : Microeconomics

INSTRUCTION: ANSWER ALL QUESTIONS

1.Based on your opinion, explain the basic economic concept of scarcity, choice and opportunity cost in relation to your own experience. Can scarcity be eliminated? Why?

2.Mary's income increase. As a result, she eats fewer lunches at the school cafeteria. Are lunches at the school cafeteria normal or inferior goods? Based on your point of you, what happens to her demand for cafeteria lunches as a result her incomeincrease?

3.Consider the following events: the demand of housemaids in Malaysia has increase drastically until the local number of housemaids was not enough to satisfy the overwhelming demand (Au, 2012). Therefore, a few government departments as well as many private agencies were established to resolve this matter. The general solution was to bring in foreign housemaids from places such as Indonesia, Cambodia, Myanmar and Philippines. Based on your opinion, how this scenario will affect market equilibrium?

4.Based on your opinion, what is the relationship between cost and productivity in the short run and long run? Explain by using a graph.

5.Based on your opinion, how is monopoly different from perfect competition? Explain your answer with an examples or case study.