QUESTION 1 Table 1 below shows the Production Possibilities Curve (PPC) for a car and computer produced by country Z with availabe resources. Table 1 units a) Based on the Table 1, draw the Production Possibilities Curve (PPC). b) Based on answer question (a), explain the relationship between nppnrtumty cost, scarcity and choices. = s c) Explain TWO (2) factors that influence the Production Possibilities Curve (PPC) shift to the right. \\ ' QUESTION 2 Table 2 below shows the relationship between price, guantity demanded,and quantity supplied of commodity X Table 2 kg 0 | s [ | e ]| 0 Based on the Table 2, answer the following questions. a) Draw the demand and supply curves. b) From the graph in (a), what are the equilibrium price and equilibrium quantity? c) Suppose price is RM30. Explain whether is shortage or surplus. d) Suppose price is RM50. Explain whether is shortage or surplus e) Assuming the prices of substitute goods rise, the quantity demanded for the guud will change by 10 kg for each price level. i. Draw the new demand curve on the same graph as in (a). ii. What is the new equilibrium price and quantity? QUESTION 3 Table 3 below shows the production of books by a XYZ stationary company. Table 3 Labour Total Marginal Average (units) Product Products Product (units) (units) (units) a) Complete the Table 3 above. b) State the level of output when the diminishing returns sets in. c) State production is at its maximum when the company hires labor. d) Sketch a diagram which consists of the total product, marginal product and avearge product. QUESTION 4 By using the expenditure approach in Table 4, calculate the national income for a country Z. Table 4 Items RM (million) Wages and salaries 500 Income from rent, dividend and interest 100 Profit 200 Transfer payment 100 Corporate taxes 80 Depreciation 50 Private investment 1000 Personal income taxes 20 Net factor income abroad 400 Employee Provident Fund (EPF) 50 Calculate: a) Gross Domestic Product (GDP) at market price. b) Gross National Product (GNP) at market price. c) National Income. d) Personal income. e) Disposable Income