Answer to Question #309386 in Microeconomics for elan

Question

1.   With reference to the PPC, assume Malaysia is producing 2 types of goods -  manufactured goods and agricultural goods. It wants to increase both the output by 20%   in 5 years. What steps should the government take to achieve this goal? (4 points).

Answer 1

The following are steps the government of Malaysia should take to increase the output of agriculture.

i). The government should improve the productivity and income of farmers, smallholders, and fishermen. This can be achieved through the adoption of farming technologies and preserving and optimizing land set aside for agriculture.

ii). Promoting training and youth infopreneur development. This is done to modernize farming techniques.

iii). Capacity building of agricultural cooperatives and associations along the supply chain through the vertically integrated supply chain.

The following are steps the government of Malaysia should take to increase the output of manufactured goods.

i) Introduction of subsidies to suppliers which allows the producers to produce more goods and services.

ii). Using infrastructure to spur out economic growth through manufacturing.

iii). Stimulating the economy with deregulation.