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Principles of Economics EIB10203| February 18
2013
|
Name:ADIKA YUSUF BIN ANUARID no:62289113247Lecturer’s Name : Sir Noor Adlin Isnin| Exercise|

Chapter 21
(Question no 1)

Orange juice

1000
500

500Chicken rice
250

0range juice| Chicken rice| Spending of orange juice| Spending of chicken rice| Total spending| 0| 500| 0| 3000| 3000|
500| 250| 300| 300| 3000|
1000| 0| 3000| 0| 3000|

Chapter 5
(Question no 7)
(a)

(b) Not because society would not accept in time too quickly. Governments should increase the danger of smoking on health advertising and does not guarantee future harm loved ones and even around. Government should raise the tax to wholesalers and retailers not to buy their own whims and fancies.

(c)True, many young people become financially than their parents. Teenagers from the school especially. Their school expenses using the money to buy cigarettes area school or shops nearby. Cigarette widely available nearby retail in store a cheap price. Adults did not buy because we have to much to pay and the use of money is very important in adults. the adults also do not have the opportunity to buy as busy time in the course of employment.

Chapter 3
(Question no 2)
a)
Table 1

Country| 1 personT-shirts (unit)| 1 personMangoes (kg)| 1 millionT-shirts( unit )| 1 million Mangoes ( kg )| Malaysia| 10| 18| 10 , 000 ,000| 18 , 000 , 000|
Thailand | 10| 10| 10 , 000 ,000| 10 ,000 , 000|

b)

The Production Possibilities Frontier for Malaysian Economies Malaysia
Malaysia

T-shirt (million)
T-shirt (million)

10
10

Mangoes (milion kg)
Mangoes (milion kg)

18
18

The Production Possibilities Frontier for Thailand Economies

Thailand
Thailand

T-shirt (million)
T-shirt (million)

10
10

Mangoes (milion kg)
Mangoes (milion kg)

10
10

c) Malaysia

T-shirts| Mangoes |
10| 18|
10/10 = 1| 18/10 = 1.8|
10/18 = 0.56| 18/18 = 1|

Coclusion here is Opportunity cost a T-shirt and One kg of mangoes : 10 T-shirts = 18 kg
1 T-shirts = 1.8 kg

18 mangoes = 10 T-shirts
1 mangoes = 0.56 kg

Thailand

T-shirts| Mangoes |
10| 10|
10/10 = 1| 10/10 = 1|
10/10 = 1| 10/10 = 1|

Coclusion here is Opportunity cost a T-shirt and One kg of mangoes : 10 T-shirts = 10 kg
1 T-shirts = 1 kg

10 mangoes = 10 T-shirts
1 mangoes = 1 kg

Opportunity Cost
| 1 T-shirt | 1 kg of mangoes|
Malaysia | 1.8 kg mangoes| 0.56 T-shirts|
Thailand| 1 kg mangoes| 1 T-shirts|
d) Neither Malaysian or Thailand has absolute advantage in producing T-shirts and producing Mangoes .

a) Thailand is the country has a comparative advantage in producing T-shirts , this is because Opportunity cost is lower . Malaysia is the country has a comparative advantage in producing manngoes , this is because Opportunity cost is lower .

b)
Without Trade
| T-shirt| Mangoes|
Malaysia| 5,000,000| 9,000,000|
Thailand| 5,000,000| 5,000,000|

With Trade
| T-shirt| Mangoes|
Malaysia| 0| 18 ,000, 0000|
Thailand| 10,000,000| 0|

T-shirt Mangoes
1 : 1.6 kg of mangoes ( Malaysia )
1 : 1 kg of mangoes ( Thailand )

So , 1 T-shirt = 1.6 kg of mangoes

| T-shirt| Mangoes|
Malaysia| 5 ,000| 10 , 000|...
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