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UNIVERSITI TEKNOLOGI MARA CAWANGAN KELANTAN,

BUKIT ILMU, 18500 MACHANG, KELANTAN.

MICROECONOMICS (ECO 162)

GROUP PROJECT

Group Project : 1) Project Paper (Report) 20 %

2) Project Paper (Presentation) -15 %

1) PROJECT PAPER (REPORT)

Guidelines on report preparation

a) Students are required to form a group consists of 3-6 members .

b) Students are required to write a report on the given topics. Towards the end semester,
the students are required to present their ideas and findings to the rest of the class.

c) Report should be computer typed using 1.5 spacing on A4 paper and using font type
Times New Roman size 12 / Arial size 11 for 8 -15 pages ONLY.

d) In the Bibliography section, reference all ideas, quotes and information from which you
use from books, articles and the Internet sources in the form of APA format.

e) Failure to submit by the due date could result to the candidate being awarded with zero
marks. Assignment submitted late without prior application for an extension or medical
evidence will not be accepted. Extensions are granted only because of approved
circumstances.

f) The submission date is on 2nd Mac 2017 not later than 12.00 pm.

Contents of the report

1.0 Introduction (5 marks)

2.0 Contents (40 marks)

3.0 Conclusion (5 marks)


2) PROJECT PAPER (PRESENTATION)

a) Each student from the group is required to present their project paper based on the
project report. Make sure every student in the group have the opportunity to speak.

b) About 10-15 minutes presentation of the project to the class followed by a 5 minutes
question and answer (Q&A) period.

c) Slides for presentation must be simple and attractive.

d) Group Presentation will be held on: Week 12 14 (depends on available time)

No. Topic
1 The bowed-outward shaped of a Production Possibilities Curves (PPC) is a result of the
law of increasing opportunity cost. We call this shape as a "concave towards the origin"
too; while a linear PPC is related to a constant opportunity cost. It is drawn under the
assumptions that the societys capacity to produce combinations of goods constrained by
limited resources and existing technology. The law of increasing relative cost bounded the
shape of the PPC. The resources are not equally suited to producing one good, compared
to another good.

Discuss the Production Possibilities Curves (PPC) and the underlying


assumptions; then explain the reasons for their shapes.

2 The primary economic problem faced by all individuals, families, businesses and nations
is the problem of scarcity of resources. This simply means that, there are not enough
resources to satisfy the unlimited wants for goods and services. Scarcity necessitates
choice. The decision made encountered opportunity cost for using scarce resources and
is often represented in graphical form as a production possibilities curve (PPC). Efficient
production is obtained by fully utilizing the resources. If the economy fails to maximized
her capability of using this resources it is said as inefficient performance.

With efficient use of resources explain the Production Possibilities Curve (PPC) and
illustrate how scarcity requires decision to make choices. Discuss the
understanding of opportunity cost in making the choice.

3 Law of Demand said that the higher the price, the lower is the quantity demanded,
because of the consumers tradeoff between expensive products with a cheaper one. It
holds in most instances, except in the case of Giffen goods. It explained consumer choice
behavior when the price changed. The law of demand states that, other things remaining
constant, as the quantity demanded for a good increases, its price falls or vice versa.
While a successful advertising campaign through television obviously increases the
demand for a particular product. Demand is also influenced by other circumstances such
as population, income and price of substitutes and complements.

Discuss the demand for normal and abnormal goods and then explain the
determinants of demand with relevant examples.

4. Law of Supply said that the higher the price, the higher is the quantity supplied, because
of the suppliers objective is aimed for higher profit. The law of supply states that, other
things remaining constant, as the price falls less quantity is supplied for a good or vice
versa. Overtime, supply of goods increases as more entrepreneurs involve in supplying
these products.

Discuss the supply of goods in a market and then explain the determinants of
supply with relevant examples.

5. We say that luxury goods is price elastic and its elasticity is greater than 1. Quantity
demanded or supplied responds differently to a change in price. We typically look at
goods that have elastic demand or supply curves as ones with many substitutes.
Typically, we see Coca Cola and Pepsi as substitutes. As bungalow house prices doubled
many looks for renting a house instead. Demand for bungalow houses are elastic.
Discuss the price elasticity of demand and supply; then explain with relevant
examples of goods that are elastic in demand or supply. Elaborate the factors that
cause it to be elastic.

6. In economics, the cross elasticity of demand measures the responsiveness of


the demand for a good to a change in the price of another good that is related. It is
measured as the percentage change in demand for the first good that occurs in response
to a percentage change in price of the second good. Oranges is greatly substitutable to
apples. Mayonnaise is complementary to beef burger for perfect recipes. A small measure
of cross elasticity of demand for infant milk make less worries to the industry; consumers
less substituting to others.

Discuss the cross elasticity of demand and explain with relevant examples.

7. According to the health ministry, cigarettes have caused high rate of tobacco-related
diseases includes heart attack, cancer, asthma, stroke, diabetes, premature baby etc. The
price elasticities of demand for cigarettes in most countries are very low and are said to be
very inelastic. Thus, to reduce the consumption of cigarettes the government tends to
impose tax heavily.

Discuss the elasticity of demand and then explain with relevant examples of goods
that are with different price elasticities. Elaborate the factors that cause it to be
different. In the case of cigarettes, explain how the government can be successful
in imposing such a tax measure.

8 Maximum price or price ceiling sets by the government below the natural market price.
This normally leads to shortage of goods in which the quantity demanded will be greater
than the quantity supplied. Rent control imposes a maximum price on apartments in
Malaysia. Several consumer goods are under controlled prices during the Hari Raya
festivals.

Discuss the government intervention in the market through maximum price


controls, then explain the advantages and disadvantages of this measures with
relevant examples.
9. Many agricultural goods have price floors imposed by the government. In Malaysia, the
most important example of a price floor is the minimum wage legislation. A price floor is
the lowest price that can be charged for a product or service. Rubber estate workers were
paid a minimum wage of RM500 per month. The National Wage Consultative Council
(NWCC) recommended a minimum wage of RM900 under the approval of the Malaysian
Ministry of Human Resource.

Explain the minimum price controls? Discuss and illustrate the minimum price
measures in a market with relevant examples. Then elaborate the advantages and
disadvantages of this price controls.

ASSIGNMENT COVER
ECO 162
MICROECONOMICS

SEMESTER : DECEMBER 2016 - MARCH 2017

ASSIGNMENT TITLE

PREPARED BY:

AHMAD BIN MUHAMMAD


201010100
D1BM220 A1

PREPARED FOR:

MADAM INA MURNI BINTI HASHIM


FACULTY OF BUSINESS AND MANAGEMENT
UiTM CAWANGAN KELANTAN

SUBMISSION DATE :
STUDENTs DETAIL

NAME :

I/C NUMBER:

MATRIX NUMBER :

ADDRESS :

PROGRAMME/GROUP :

CONTACT NUMBER:

ADDRESS:

E-MAIL ADDRESS:

DECLARATION
I declare that all the information in this statement is true and correct.

Students Signature : ___________________ Date: ____________

* This form is compulsory to all students.

DECLARATION OF ORIGINALITY FORM

I hereby declare that this assignment is of my own work that I have for MICROECONOMICS
(ECO162) . Here I declare that :

This is my original work.


I did not copy other persons work
This assignment is all my own work and I have acknowledged any use of the published
or unpublished works of other people.
I had fulfilled all the assignments requirement.
I did not allow other students to copy my work.
I understand the implication of plagiarism.

Therefore, I (students name) agree and


understand that if any of the above is found to be untrue, University Technology MARA,
Kelantan has the full right to take any disciplinary action according to the policy.

Students Signature: ___________________ Date: ____________

* This form must be completed and signed and submitted with all assignments.

No. Topic Students Name


1 The bowed-outward shaped of a Production 1.
Possibilities Curves (PPC) is a result of the law
of increasing opportunity cost. We call this shape
as a "concave towards the origin" too; while a
linear PPC is related to a constant opportunity 2.
cost. It is drawn under the assumptions that the
societys capacity to produce combinations of
goods constrained by limited resources and
existing technology. The law of increasing
relative cost bounded the shape of the PPC. The
resources are not equally suited to producing 3.
one good, compared to another good.

Discuss the Production Possibilities Curves


(PPC) and the underlying assumptions; then
explain the reasons for their shapes.

2 The primary economic problem faced by all 1.


individuals, families, businesses and nations is
the problem of scarcity of resources. This simply
means that, there are not enough resources to
satisfy the unlimited wants for goods and 2.
services. Scarcity necessitates choice. The
decision made encountered opportunity cost
for using scarce resources and is often
represented in graphical form as a production 3.
possibilities curve (PPC). Efficient production is
obtained by fully utilizing the resources. If the
economy fails to maximized her capability of
using this resources it is said as inefficient
performance.

With efficient use of resources explain the


Production Possibilities Curve (PPC) and
illustrate how scarcity requires decision to
make choices. Discuss the understanding of
opportunity cost in making the choice.

3 Law of Demand said that the higher the price, 1.


the lower is the quantity demanded, because of
the consumers tradeoff between expensive
products with a cheaper one. It holds in most
instances, except in the case of Giffen goods. It 2.
explained consumer choice behavior when the
price changed. The law of demand states that,
other things remaining constant, as the quantity 3.
demanded for a good increases, its price falls or
vice versa. While a successful advertising
campaign through television obviously increases
the demand for a particular product. Demand is
also influenced by other circumstances such as
population, income and price of substitutes and
complements.

Discuss the demand for normal and abnormal


goods and then explain the determinants of
demand with relevant examples.

4. Law of Supply said that the higher the price, the 1.


higher is the quantity supplied, because of the
suppliers objective is aimed for higher profit. The
law of supply states that, other things remaining
constant, as the price falls less quantity is 2.
supplied for a good or vice versa. Overtime,
supply of goods increases as more
entrepreneurs involve in supplying these 3.
products.

Discuss the supply of goods in a market and


then explain the determinants of supply with
relevant examples.

5. We say that luxury goods is price elastic and its 1.


elasticity is greater than 1. Quantity demanded or
supplied responds differently to a change in
price. We typically look at goods that have elastic
demand or supply curves as ones with many 2.
substitutes. Typically, we see Coca Cola and
Pepsi as substitutes. As bungalow house prices
doubled many looks for renting a house instead. 3.
Demand for bungalow houses are elastic.

Discuss the price elasticity of demand and


supply; then explain with relevant examples
of goods that are elastic in demand or supply.
Elaborate the factors that cause it to be
elastic.

6. In economics, the cross elasticity of demand 1.


measures the responsiveness of the demand for
a good to a change in the price of another good
that is related. It is measured as the percentage
change in demand for the first good that occurs 2.
in response to a percentage change in price of
the second good. Oranges is greatly
substitutable to apples. Mayonnaise is 3.
complementary to beef burger for perfect
recipes. A small measure of cross elasticity of
demand for infant milk make less worries to the
industry; consumers less substituting to others.

Discuss the cross elasticity of demand and


explain with relevant examples.

7. According to the health ministry, cigarettes have 1.


caused high rate of tobacco-related diseases
includes heart attack, cancer, asthma, stroke,
diabetes, premature baby etc. The price
elasticities of demand for cigarettes in most 2.
countries are very low and are said to be very
inelastic. Thus, to reduce the consumption of
cigarettes the government tends to impose tax 3.
heavily.

Discuss the elasticity of demand and then


explain with relevant examples of goods that
are with different price elasticities. Elaborate
the factors that cause it to be different. In the
case of cigarettes, explain how the
government can be successful in imposing
such a tax measure.

8. Maximum price or price ceiling sets by the 1.


government below the natural market price. This
normally leads to shortage of goods in which the
quantity demanded will be greater than the
quantity supplied. Rent control imposes a 2.
maximum price on apartments in Malaysia.
Several consumer goods are under controlled
prices during the Hari Raya festivals.
3.
Discuss the government intervention in the
market through maximum price controls, then
explain the advantages and disadvantages of
this measures with relevant examples.

9. Many agricultural goods have price floors 1.


imposed by the government. In Malaysia, the
most important example of a price floor is the
minimum wage legislation. A price floor is the
lowest price that can be charged for a product or 2.
service. Rubber estate workers were paid a
minimum wage of RM500 per month. The
National Wage Consultative Council (NWCC)
recommended a minimum wage of RM900 under 3.
the approval of the Malaysian Ministry of Human
Resource.

Explain the minimum price controls?


Discuss and illustrate the minimum price
measures in a market with relevant examples.
Then elaborate the advantages and
disadvantages of this price controls.
RUBRICS for Group Report ECO162 for the questions as follow:
1. The bowed-outward shaped of a Production Possibilities Curves (PPC) is a result of the law of increasing opportunity cost. We call this
shape as a "concave towards the origin" too; while a linear PPC is related to a constant opportunity cost. It is drawn under the
assumptions that the societys capacity to produce combinations of goods constrained by limited resources and existing technology. The
law of increasing relative cost bounded the shape of the PPC. The resources are not equally suited to producing one good, compared to
another good.

Discuss the Production Possibilities Curves (PPC) and the underlying assumptions; then explain the reasons for their shapes.

CRITERIA 0 LOW FAIR ABOVE EXCELLENT Weighted


AVERAGE MAX
marks
MARKS
obtained
Weightage 0 1 2 3 4

I. Definition and No definition Unclear Quite clear Clear definition Detailed


asssumptions of and definition and definition and and asssumptions definition and 4/4 x 5
PPC. asssumptions of asssumptions of asssumptions of of PPC with asssumptions of W/4 x 5
PPC. PPC. PPC. examples. PPC with =5
examples.

II. Differentiate the No diagrams Unclear Quite clear Clear diagrams Detailed
two types of PPC and explanation diagrams and diagrams and and explanation explanation with
diagrams with of PPCs explanation of explanation of of both PPCs with clear diagrams of 4/4 x 20
explanation of both PPCs with both PPCs with related laws of both PPCs with W/4 x 20
related laws of related laws of related laws of Opportunity Cost. related laws of = 20
Opportunity Opportunity Opportunity Opportunity Cost.
Cost. Cost. Cost.

III. Explanation of No explanation Unclear Quite clear Clear explanation Detailed 20 W/4 x 20
the law of of the law of explanation of explanation of of the law of explanation of
relative cost relative cost. the law of the law of relative cost the law of relative
towards the relative cost relative cost towards the cost towards the
shape of PPC towards the towards the shape of PPC shape of PPC
with examples. shape of PPC. shape of PPC with examples. with examples.

IV. Conclusion No highlights of One major point Two major points Three major Four major points
any major was highlighted were highlighted points were were highlighted
points. highlighted
5 W/4 x 5

TOTAL MARKS 50 x 2 x 20% = __ x 0.4

50 x 0.4 = 20% = .%
RUBRIC for Group Report ECO162 for:
2. The primary economic problem faced by all individuals, families, businesses and nations is the problem of scarcity of resources. This
simply means that, there are not enough resources to satisfy the unlimited wants for goods and services. Scarcity necessitates choice.
The decision made encountered opportunity cost for using scarce resources and is often represented in graphical form as a production
possibilities curve (PPC). Efficient production is obtained by fully utilizing the resources. If the economy fails to maximized her capability
of using this resources it is said as inefficient performance.

With efficient use of resources explain the Production Possibilities Curve (PPC) and illustrate how scarcity requires decision to
make choices. Discuss the understanding of opportunity cost in making the choice.

CRITERIA 0 LOW FAIR ABOVE EXCELLENT Weighted


AVERAGE MAX
marks
MARKS
obtained
Weightage 0 1 2 3 4

I. Definition of No definition Unclear Quite clear Clear definition Detailed definition


scarcity and and explanation definition and definition and and explanation and explanation
4/4 x 5
explanation of of resources explanation of explanation of of resources that of resources that
W/4 x 5
resources that are that are scarce. resources that resources that are scarce with are scarce with =5
scarce. are scarce. are scarce. examples. examples.

II. Explanation with No explanation Unclear Quite clear Clear explanation Detailed
examples on the on the theory of explanation on explanation on on the theory of explanation on
theory of opportunity cost the theory of the theory of opportunity cost in the theory of
4/4 x 20
opportunity cost in in making opportunity cost opportunity cost making choices opportunity cost
W/4 x 20
making choices. choices. in making in making with examples. in making choices = 20
choices. choices. with good
examples.
III. Explanation of No diagram of Unclear diagram Quite clear Clear diagram of Detailed
choices, PPC and of PPC and diagram of PPC PPC and explanation with
opportunity cost explanation of explanation of and explanation explanation of clear diagram of
and scarcity with choices, OC choices, OC and of choices, OC choices, OC and PPC and with
PPC diagram. and scarcity. scarcity. and scarcity. scarcity with detailed
examples of explanation of
efficient, choices, OC and
inefficient and scarcity with good 20 W/4 x 20
unattainable examples and
points. clear explanation
of efficient,
inefficient and
unattainable
points.

IV. Conclusion No highlights of One major point Two major points Three major Four major points
any major was highlighted were highlighted points were were highlighted
points. highlighted
5 W/4 x 5

TOTAL MARKS
50 x 2 x 20% = __ x 0.4

50 x 0.4 = 20% = .%
RUBRIC for Group Report ECO162 for:
3. Law of Demand said that the higher the price, the lower is the quantity demanded, because of the consumers tradeoff between expensive
products with a cheaper one. It holds in most instances, except in the case of Giffen goods. It explained consumer choice behavior when
the price changed. The law of demand states that, other things remaining constant, as the quantity demanded for a good increases, its
price falls or vice versa. While a successful advertising campaign through television obviously increases demand for a product. Demand for
goods also to be influenced by other circumstances such as population, income and price of substitutes and complements.
Discuss the demand for normal and abnormal goods and then explain the determinants of demand with relevant examples.

CRITERIA 0 LOW FAIR ABOVE EXCELLENT Weighted


AVERAGE MAX
marks
MARKS
obtained
Weightage 0 1 2 3 4

I. Define demand No definition Unclear Quite clear Clear definition Detailed definition
4/4 x 5
and explain the Law and explanation definition and definition and and explanation and explanation
W/4 x 5
of Demand. of Law of explanation of explanation of of Law of demand of Law of demand
=5
demand. Law of demand. Law of demand. with example. with example.

II. Differentiate No diagram and Unclear diagram Quite clear Appropriate Detailed
between the explanation. and explanation. diagram and diagram and explanation with
downward sloping explanation. explanation with appropriate
demand curve for examples. diagram and
4/4 x 20
normal goods with examples.
W/4 x 20
that of upward
= 20
sloping abnormal
goods such as
Giffen goods and
extravagant goods.
III. Explain the No explanation Unclear Quite clear Clear explanation Detailed
determinants of and diagram for explanation and explanation and and diagram for explanation and
demand using determinants of diagram for diagram for determinants of diagram for
suitable diagram demand. determinants of determinants of demand with determinants of
and example. demand. demand. examples. demand with
examples. 20 W/4 x 20

IV. Conclusion No highlights of One major point Two major points Three major Four major points
any major was highlighted were highlighted points were were highlighted
points. highlighted
5 W/4 x 5

TOTAL MARKS 50 x 2 x 20% = __ x 0.4

50 x 0.4 = 20% = .%
RUBRIC for Group Report ECO162 for:

4. Law of Supply said that the higher the price, the higher is the quantity supplied, because of the suppliers objective is aimed for higher
profit. The law of supply states that, other things remaining constant, as the price falls less quantity is supplied for a good or vice versa.
Overtime, supply of goods increases as more entrepreneurs involve in supplying these products.

Discuss the supply of goods in a market and then explain the determinants of supply with relevant examples.

CRITERIA 0 LOW FAIR ABOVE EXCELLENT Weighted


AVERAGE MAX
marks
MARKS
obtained
Weightage 0 1 2 3 4

I. Define supply No definition Unclear Quite clear Clear definition Detailed


and explain the and explanation definition and definition and and explanation definition and
Law of supply. of Law of explanation of explanation of of Law of supply explanation of 5 W/4 x 5
supply. Law of supply. Law of supply. with example. Law of supply
with example.

II. Differentiate the No diagrams Unclear Quite clear Appropriate Detailed


individual supply and explanation. diagrams and diagrams and diagrams and explanation and
and market explanation. explanation. explanation with appropriate
10 W/4 x 10
supply by using example. diagrams with
a diagram with example.
explanation.

III. Explain all the No explanation Unclear Quite clear Clear explanation Detailed 30 W/4 x 30
determinants of and diagram for explanation and explanation and and diagram for explanation and
supply and show determinants of diagram for diagram for determinants of diagram for
the situation by determinants of determinants of supply with determinants of
using a diagram supply. supply. supply. examples. supply with
with example. examples.

IV. Conclusion No highlights of One major point Two major points Three major Four major points
any major was highlighted were highlighted points were were highlighted
points. highlighted
5 W/4 x 5

TOTAL MARKS 50 x 2 x 20% = __ x 0.4

50 x 0.4 = 20% = .%
RUBRIC for Group Report ECO162 for:

5. We say that luxury goods is price elastic and its elasticity is greater than 1. Quantity demanded or supplied responds differently to a
change in price. We typically look at goods that have elastic demand or supply curves as ones with many substitutes. Typically, we see
Coca Cola and Pepsi as substitutes. As bungalow house prices doubled many looks for renting a house instead. Demand for bungalow
houses are elastic.

Discuss the price elasticity of demand and supply; then explain with relevant examples of goods that are elastic in demand or
supply. Elaborate the factors that cause it to be elastic.

CRITERIA 0 LOW FAIR ABOVE EXCELLENT Weighted


AVERAGE MAX
marks
MARKS
obtained
Weightage 0 1 2 3 4

I. Define price No definition Unclear Quite clear Clear definition Detailed


elasticity of and explanation definition and definition and and explanation definition and
demand and of its explanation of its explanation of its of its explanation of its 5 W/4 x 5
supply and explain measurement. measurement. measurement. measurement measurement
its measurement. with example. with example.

II. Differentiate elastic No diagrams Unclear Quite clear Appropriate Detailed 20 W/4 x 10
and inelastic and explanation. diagrams and diagrams and diagrams and explanation and
demand and explanation. explanation. explanation with appropriate
supply by using examples of diagrams with
suitable diagrams goods that are examples of
with examples of elastic. goods that are
goods that are elastic.
elastic in demand
or supply.

III. Explain the factors No explanation Unclear Quite clear Clear explanation Detailed
that cause the and example. explanation and explanation and with examples. explanation with
goods to be elastic examples. examples. examples.
20 W/4 x 20
in demand or
supply with
relevant examples.

IV. Conclusion No highlights of One major point Two major points Three major Four major points
any major was highlighted were highlighted points were were highlighted
points. highlighted
5 W/4 x 5

TOTAL MARKS 50 x 2 x 20% = __ x 0.4

50 x 0.4 = 20% = .%
RUBRIC for Group Report ECO162 for:

6. In economics, the cross elasticity of demand measures the responsiveness of the demand for a good to a change in the price of
another good that is related. It is measured as the percentage change in demand for the first good that occurs in response to a
percentage change in price of the second good. Oranges is greatly substitutable to apples. Mayonnaise is complementary to beef burger
for perfect recipes. A small measure of cross elasticity of demand for infant milk make less worries to the industry; consumers less
substituting to others.

Discuss the cross elasticity of demand and explain with relevant examples.

CRITERIA 0 LOW FAIR ABOVE EXCELLENT Weighted


AVERAGE MAX
marks
MARKS
obtained
Weightage 0 1 2 3 4

I. Define cross No definition Unclear Quite clear Clear definition Detailed


elasticity of and definition and definition and and measurement definition and
5 W/4 x 5
demand and its measurement. measurement. measurement. with examples. measurement
measurement. with examples.

II. Differentiate the No explanation Unclear Quite clear Appropriate Detailed 20 W/4 x 20
cross elasticity of and examples. explanation and explanation and explanation with explanation with
demand for examples. examples. examples. appropriate
substitute and examples.
complementary
goods with relevant
examples.

III. Explain the No explanation Unclear Quite clear Appropriate Detailed


strength of and examples. explanation and explanation and explanation with explanation with
relationships of examples. examples. examples. appropriate
20 W/4 x 20
substitutes and examples.
complements with
examples.

IV. Conclusion No highlights of One major point Two major points Three major Four major points
any major was highlighted were highlighted points were were highlighted
points. highlighted
5 W/4 x 5

TOTAL MARKS 50 x 2 x 20% = __ x 0.4

50 x 0.4 = 20% = .%
RUBRIC for Group Report ECO162 for:
7. According to the health ministry, cigarettes have caused high rate of tobacco-related diseases includes heart attack, cancer, asthma, stroke,
diabetes, premature baby etc. The price elasticities of demand for cigarettes in most countries are very low and are said to be very inelastic.
Thus, to reduce the consumption of cigarettes the government tends to impose tax heavily.

Discuss the elasticity of demand and then explain with relevant examples of goods that are with different price elasticities.
Elaborate the factors that cause it to be different. In the case of cigarettes, explain how the government can be successful in
imposing such a tax measure.

0 LOW FAIR ABOVE EXCELLENT Weighted


AVERAGE MAX
marks
CRITERIA MARKS
obtained
Weightage 0 1 2 3 4

I. Define price No definition Unclear Quite clear Clear definition Detailed definition
elasticity of demand and explanation definition and definition and and explanation and explanation
and explain with of elasticities. explanation of explanation of of elasticities with of elasticities with
relevant examples elasticities elasticities. relevant examples relevant W/4 x 5
5
of goods. of goods. examples of
goods.
II. Explanation on No explanation Unclear Quite clear Clear explanation Detailed
the factors that on the factors explanation on explanation on on the factors that explanation on
determine the that determine the factors that the factors that determine the the factors that
elasticities of the elasticities determine the determine the elasticities of determine the
20 W/4 x 20
demand. of demand. elasticities of elasticities of demand with elasticities of
demand. demand. examples. demand with
examples.

III. Discussion on No discussion Unclear Quite clear Clear discussion Detailed


the different burden on the different discussion on discussion on on the different discussion on the
of tax with elastic burden of tax the different the different burden of tax different burden
and inelastic with elastic and burden of tax burden of tax with elastic and of tax with elastic
demand and inelastic with elastic and with elastic and inelastic demand and inelastic
explanation on how demand and tax inelastic demand inelastic demand and explanation demand and
the government can on cigarettes. and explanation and explanation on how the explanation on
be more on how the on how the government can how the
successful in government can government can be more government can 20 W/4 x 5
imposing a tax be more be more successful in be more
measure on successful in successful in imposing a tax successful in
cigarettes, where imposing a tax imposing a tax measure on imposing a tax
the demand is measure on measure on cigarettes, where measure on
inelastic. cigarettes, where cigarettes, where the demand is cigarettes, where
the demand is the demand is inelastic. the demand is
inelastic. inelastic. inelastic.

No highlights of One major point Two major points Three major Four major points
IV. Conclusion any major was highlighted were highlighted points were were highlighted
points. highlighted 5 W/4 x 5
TOTAL MARKS
50 x 2 x 20% = __ x 0.4

50 x 0.4 = 20% = .%

RUBRIC for Group Report ECO162 for:


8. Maximum price or price ceiling sets by the government below the natural market price. This normally leads to shortage of goods in
which the quantity demanded will be greater than the quantity supplied. Rent control imposes a maximum price on apartments in
Malaysia. Several consumer goods are under controlled prices during the Hari Raya festivals.

Discuss the government intervention in the market through maximum price controls, then explain the advantages and
disadvantages of this measures with relevant examples.

CRITERIA 0 LOW FAIR ABOVE EXCELLENT Weighted


AVERAGE MAX
marks
MARKS
obtained
Weightage 0 1 2 3 4
I. Definition and give No definition Unclear Quite clear Clear definition Detailed
4/4 x 5
example of and examples. definition and definition and and explanation definition and
W/4 x 5
maximum price or examples. explanation with with examples. explanation with
=5
price ceiling. examples. examples.

II. Explain maximum No diagrams Unclear Quite clear Appropriate Detailed


price and and explanation. diagrams and diagrams and diagrams and explanation and
shortages that explanation. explanation. explanation with appropriate
4/4 x 20 W/4 x 20
occur in the market example. diagrams with
by using a example. = 20
diagram.

III. Explain the No explanation Unclear Quite clear Clear explanation Detailed
advantages and of advantages explanation of explanation of of advantages explanation of
disadvantages of and advantages and advantages and and is advantages and 20 W/4 x 20
maximum price or disadvantages. disadvantages. disadvantages advantages with disadvantages
price ceiling. supply. examples. with examples.

IV. Conclusion No highlights of One major point Two major points Three major Four major points
any major was highlighted were highlighted points were were highlighted
points. highlighted
5 W/4 x 5

TOTAL MARKS 50 x 2 x 20% = __ x 0.4


50 x 0.4 = 20% = .%

RUBRIC for Group Report ECO162 for:


9. Many agricultural goods have price floors imposed by the government. In Malaysia, the most important example of a price floor is the
minimum wage legislation. A price floor is the lowest price that can be charged for a product or service. Rubber estate workers were paid a
minimum wage of RM500 per month. The National Wage Consultative Council (NWCC) recommended a minimum wage of RM900 under the
approval of the Malaysian Ministry of Human Resource.

Explain the minimum price controls? Discuss and illustrate the minimum price measures in a market with relevant examples. Then
elaborate the advantages and disadvantages of this price controls.

0 LOW FAIR ABOVE EXCELLENT Weighted


AVERAGE MAX
marks
CRITERIA MARKS
obtained
Weightage 0 1 2 3 4

I. Define price No definition Unclear Quite clear Clear definition Detailed definition
floors and and explanation definition and definition and and explanation and explanation W/4 x 5
explanation with of price floors. explanation of explanation of of price floors with of price floors
relevant examples. price floors. price floors. relevant with relevant
examples. examples. 5

II. Explain the No explanation Unclear Quite clear Clear explanation Detailed
implementation of and diagram. explanation explanation of of the explanation of the
price floors and without diagram the implementation of implementation of
surpluses that drawn. implementation price floors and price floors and
occur in the market of price floors surpluses with surpluses with
20 W/4 x 20
with illustration in a and surpluses illustration in a illustration in a
diagram and with with illustration in diagram and with diagram and with
relevant examples. a diagram. relevant relevant
examples. examples.

III. Elaboration on No elaboration Unclear Quite clear Clear elaboration Detailed


the advantages on the elaboration on elaboration on on the elaboration on
and disadvantages advantages and the advantages the advantages advantages and the advantages
of price floor disadvantages and and disadvantages of and
controls. of price floor disadvantages of disadvantages of price floor disadvantages of 20 W/4 x 20
controls. price floor price floor controls with price floor
controls. controls. examples. controls with
examples.

IV. Conclusion No highlights of One major point Two major points Three major Four major points
any major was highlighted were highlighted points were were highlighted
points. highlighted
5 W/4 x 5
TOTAL MARKS
50 x 2 x 20% = __ x 0.4

50 x 0.4 = 20% = .%