Question 1 Elaborate on the three concepts of scarcity, choices and opportunity cost. Use the example of a firm that will face these three concepts. Question 2 The most important determinant of demand is price. Explain to what extent this statement is true. Question 3 Inflation and unemployment are the two most serious economic problems. Describe the two problems focusing on why they occur. Question 4 When the exchange rate between US dollars and Malaysian Ringgit increases, Malaysian goods will become relatively cheaper. By using this example, explain whether, in such a situation, more Malaysians will travel abroad OR more tourists will come to Malaysia..

1. Question 1
Elaborate on the three concepts of scarcity, choices and opportunity cost. Use the example of a
firm that will face these three concepts.
Question 2
The most important determinant of demand is price. Explain to what extent this statement is true.
Question 3
Inflation and unemployment are the two most serious economic problems. Describe the two
problems focusing on why they occur.
Question 4
When the exchange rate between US dollars and Malaysian Ringgit increases, Malaysian goods
will become relatively cheaper. By using this example, explain whether, in such a situation, more
Malaysians will travel abroad OR more tourists will come to Malaysia.