Questions: 1. The circular flow diagram is a model used to demonstrate how a given economic system functions through the interactions of 1" agent of economics and 2" agent of economics. Identify the roles of each of these actors through a set of example. Using a suitable diagram, draw and elaborate the Circular Flow Diagram (Physical and non- Physical flow) in economies. (10) (Total :10 marks)2. In business analysis, the production possibility frontier (PPF) is a curve illustrating the varying amounts of two products that can be produced when both depend on the same finite endowment of resources by one country. The PPF demonstrates that the production of one commodity may increase only if the production of the other commodity decreases in economy. By using the Production Possibilities Frontier Curve (PPF), explain the concepts of: i. Inefficient allocation of resources (2.5) ii. Efficient allocation of resources (2.5) iii. Unattainable point. (2.5) iv. Scarcity of resources. (2.5) Total : 10 marks)3. Suppose that the demand and supply of liter of petrol are given in table 1 below: Price (RM) Quantity demanded (liter per Quantity supplied (liter per day) day) 0.80 8 24 0.75 10 22 0.70 12 20 0.65 14 18 0.60 16 16 0.55 18 14 Table 1 a) What is the equilibrium price and quantity of petrol? (2) b) Use a graph paper to draw a demand curve and supply curve based on the table above. (8) ) Now suppose that a political crisis in the Middle East lead to a decrease in the supply of petrol by 8 liter per day at every price. Show the change in the graph paper and show the new equilibrium position. (5) i) What is the new equilibrium price of petrol? ii) What is the new equilibrium quantity of petrol? d) In order to help the consumer, the government imposes a price control of RM0.60 per liter: (5) Give the name of this price control. How much petrol will be demanded by consumer at this price?. How much petrol will be offered for sale by suppliers? How much petrol will actually be sold? Calculate the excess quantity of petrol demanded. (Total : 20 marks)