Answer Eco211 Dec 2018 PDF

CONFIDENTIAL BAIDEC 2018/EC0211/210/164/219
UNIVERSITI TEKNOLOGI MARA

FINAL EXAMINATION
COURSE MACROECONOMICS
COURSE CODE EC0211/210/164/219
EXAMINATION DECEMBER 2018
TIME 3 HOURS
INSTRUCTIONS TO CANDIDATES
1 . This question paper consists of two (2) parts PART A (4 Questions) PART B (5
Questions)
2. Answer ALL questions from PART A and any three (3) questions from PART B in the Answer
Booklet. Start each answer on a new page.
3. Do not bring any material into the examination room unless permission is given by the
invigilator.
4. Please check to make sure that this examination pack consists of :

i) the Question Paper ii) an Answer Booklet -
provided by the Faculty
5. Answer ALL questions in English
DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO

@ Hak Cipta Universiti Teknologi MARA CONFIDENTIAL
This study source was downloaded by 100000858546276 from CourseHero.com on 07-06-2024 02:23:39 GMT -05:00
https://www.coursehero.com/file/101882292/ANSWER-ECO211-DEC-2018pdf/
CONFIDENTIAL 2 BNDEC
PART A
QUESTION 1
The following are extracted from the national income accounting for country BOLEH in 2018.
Item RM (million)
Personal consumption 245
Net foreign factor income received in Malaysia 440
Transfer payments 120
Capital consumption 270
Social security contributions 220
Net exports 110
Indirect taxes 180
Undistributed corporate profits 125
Personal income taxes 260
Corporate income taxes 190
Government expenditure 990
Investment 880
Subsidies 120
Based on the above table, calculate:
a) Gross Domestic Product (GDP) at market price

Government expenditure 990
Investment 880
Personal consumption 245
Net exports 110
TOTAL 2225
(3 marks)
b) Gross National Product (GNP) at factor cost
TOTAL 2225
Indirect taxes (180)
Subsidies 120
Net foreign factor income received in Malaysia 440
TOTAL 2605
(3 marks)
Hak Cipta Universiti Teknologi MARA CONFIDENTIAL

CONFIDENTIAL 3 BAIDEC 2018/EC021112101164/219
c) National income
TOTAL 2605
Capital consumption (270)
TOTAL 2335
(2 marks)
d) Disposable income
TOTAL 2335
Transfer payments 120
Undistributed corporate profits (125)
Corporate income taxes (190)
Social security contributions (220)
TOTAL 1920
Personal income taxes (260)
TOTAL 1660
(2 marks)

QUESTION 2
The following are data of ADOODOO country (RM million)
Saving (S) = 120 + o.4yd

Investment (I) = 707
Government expenditure (G) = 550
Taxation (T) = 10
a) Derive the consumption function after tax.
(2 marks)
b) Calculate the national income equilibrium using an aggregate approach.
(3 marks)
c) Calculate national income equilibrium if government expenditure increases by RM50

million.
(3 marks)
d) State any two (2) difficulties in measuring national income.

(2 marks)

CONFIDENTIAL 6 BAIDEC
QUESTION
QUESTION 3
The following table shows the money supply for ALIBABA country.
Item RM million)
Paper money 300
Coins 120
Demand deposits in commercial banks 2, 100
Negotiable certificates produced by commercial banks 2,500
Bank Negara certificates 1,750
Negotiable certificates produced by Bank Simpanan Nasional 1,000
Fixed and saving deposits in other financial institutions 2,250
Fixed and saving deposits in commercial banks 1 ,250
Repurchase agreements in commercial banks 550
Calculate:
a) Fiat money
Paper money 300
Coins 120
TOTAL 420
(2 marks)
b) The value of money supply M1

Paper money 300
Coins 120
Demand deposits in commercial banks 2, 100
TOTAL 2520
(2 marks)
c) The value of money supply M2

TOTAL 2520
Negotiable certificates produced by commercial banks 2,500
Bank Negara certificates 1,750
Fixed and saving deposits in commercial banks 1 ,250
Repurchase agreements in commercial banks 550
Total 8570

(3 marks)
d) The value of money supply M3

TOTAL 8570
Negotiable certificates produced by Bank Simpanan Nasional 1,000
Fixed and saving deposits in other financial institutions 2,250
TOTAL 11820
(3 marks)

QUESTION 4
The Balance of Payments data for Malaysia is shown below.

Items RM million
Freight and insurance net 2,155
Other transportations 98
Income from investment 1 ,525
Travel 322
Exports 32,320
Imports 33,010
Private short-term capital net 1,710
Official Iong -term capital net 315
Corporate investment net 4, 125
Transfer payments net 135
Errors and omissions 323
Calculate:
a) Balance of Goods
Exports (32,320)
Imports (33,010)
TOTAL -690
(1 mark)
b) Balance of Current account

TOTAL 2575
Exports (32,320)
Imports (33,010)
TOTAL -690
Other transportations 98
Freight and insurance net 2,155
Travel 322
TOTAL BALANCE AND GOOD SERVICES 1885
Income from investment 1 ,525
Transfer payments net 135
TOTAL 3545
(3 marks)

c) Balance of Capital and Financial account

TOTAL 3545
Private short-term capital net 1,710
Official Iong -term capital net 315
Corporate investment net 4, 125
TOTAL 9695
(2 marks)
d) Overall balance
TOTAL 9695
Errors and omissions 323
TOTAL 10018
(2 marks)
e) Does the overall balance show a situation of deficit or surplus?

Surplus, because country provides enough capital to pay for all domestic productions.
(2 marks)

Powered by TCPDF (www.tcpdf.org)

Answer Eco211 Dec 2018 PDF

Uploaded by

Copyright:

Available Formats

Answer Eco211 Dec 2018 PDF

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Answer Eco211 Dec 2018 PDF

Uploaded by

Copyright:

Available Formats

CONFIDENTIAL BAIDEC 2018/EC0211/210/164/219

UNIVERSITI TEKNOLOGI MARA

4. Please check to make sure that this examination pack consists of :

5. Answer ALL questions in English

DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO

a) Gross Domestic Product (GDP) at market price

Hak Cipta Universiti Teknologi MARA CONFIDENTIAL

@ Hak Cipta Universiti Teknologi MARA CONFIDENTIAL

Saving (S) = 120 + o.4yd

a) Derive the consumption function after tax.

b) Calculate the national income equilibrium using an aggregate approach.

c) Calculate national income equilibrium if government expenditure increases by RM50

d) State any two (2) difficulties in measuring national income.

Hak Cipta Universiti Teknologi MARA CONFIDENTIAL

@ Hak Cipta Universiti Teknologi MARA CONFIDENTIAL

b) The value of money supply M1

c) The value of money supply M2

Hak Cipta Universiti Teknologi MARA CONFIDENTIAL

d) The value of money supply M3

@ Hak Cipta Universiti Teknologi MARA CONFIDENTIAL

The Balance of Payments data for Malaysia is shown below.

b) Balance of Current account

Hak Cipta Universiti Teknologi MARA CONFIDENTIAL

c) Balance of Capital and Financial account

e) Does the overall balance show a situation of deficit or surplus?

@ Hak Cipta Universiti Teknologi MARA CONFIDENTIAL

You might also like