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1 Explain the difference between excess demand and excess supply (show using the graph)
Explain what is productivity and how productivity is related to the standard of living? (4 marks)
B. Describe the FOUR (4) determinants of labor productivity in a particular country. (8 marks)
C. Explain the causal link between wealth and health. Describe the poverty vicious circle where poor countries are poor because their populations are not healthy, and their populations are not healthy because they are poor (cannot afford adequate healthcare and nutrition). (8 marks)
How do firms maximize profit in a perfectly competitive market?
Discuss how a break-even point is determined or calculated.
Discuss the difference between economies of scale and diseconomies of scale.
Discuss the relationship between marginal product and marginal cost.
Explain the difference between fixed costs and variable costs.
- Suppose a firm has limited money expenditure of 800 birr to be spent on two factors labour and capital. The price of capital is per hours and the price of labour is birr 10 per hours.
- A) draw the iso cost line
- B) calculate the slope of the iso cost line
The following adjustments need to be considered:
1 Shop rental was KM2, 000 per month and payment was made starting from July 20x7.
2 One of the customers was declared bankrupt and unable to settle the debts. The customer still owed
RM4,000.
3 Interest on a loan from Affin Bank for the year ended 30 June 20x8 was still outstanding. The agreement
was signed on 31 January 20x8.
4 Salary for Akim, the accounts clerk, amounting to RM3,000 was still unpaid.
5 Allowance for doubttul debts is to be provided at 5% on net accounts receivable.
6 An annual depreciation is to be provided as follows:
Cabinet
10% on cost
Furniture and fittings 10% on carrying value
7 A delivery van worth RM70,000 was purchased on July 20x7. The residual value was RM10,000. Its useful
life is for 5 years.
8 The owner, Datin Rossa, withdrew cash of RM200 and took a camera worth RM5,000 for her daughter's
birthday.
9 Stock as at 30 June 20x8 was RM32,000.
Required:
Other Comprehensive Income for the vear ended 30 Tune
adjustments
1 Shop rental was KM2, 000 per month and payment was made starting from July 20x7.
2 One of the customers was declared bankrupt and unable to settle the debts. The customer still owed
RM4,000.
3 Interest on a loan from Affin Bank for the year ended 30 June 20x8 was still outstanding. The agreement
was signed on 31 January 20x8.
4 Salary for Akim, the accounts clerk, amounting to RM3,000 was still unpaid.
5 Allowance for doubttul debts is to be provided at 5% on net accounts receivable.
6 An annual depreciation is to be provided as follows:
Cabinet
10% on cost
Furniture and fittings 10% on carrying value
7 A delivery van worth RM70,000 was purchased on July 20x7. The residual value was RM10,000. Its useful
life is for 5 years.
8 The owner, Datin Rossa, withdrew cash of RM200 and took a camera worth RM5,000 for her daughter's
birthday.
9 Stock as at 30 June 20x8 was RM32,000.
Required:
Premare the Statomant of Loss and Other Comprehensive Income for the vear ended 30 Tune
