Economics 2281

Sr. III-C
January 2016 Test
Time Duration: 1 hour
Total Marks: 40
Question 1
The Malaysian Government has stated that it wants to promote enterprise and is seeking to
increase the role of market forces in the economy.
(a) Describe the role of entrepreneurs. [4]
(b) Explain two ways that a government could promote enterprise. [4]
(c) Explain, with the aid of demand and supply diagrams, how resources are re-allocated in a
market economy. [6]
(d) Discuss whether it is a disadvantage to rely just on market forces to allocate resources. [6]
Question 2
The economic problem exists everywhere in the world, whatever type of economic system a
country may have.
(a) Giving an example of each, define the four factors of production. [4]
(b) Explain the nature of the economic problem. [4]
(c) Compare how resources are allocated in market and mixed economic systems. [4]
(d) Discuss whether people living in a country would benefit if their countrys economic system
changed from a mixed to a market economy. [8]

Economics 2281
Sr. III-C
January 2016 Test
Time Duration: 1 hour
Total Marks: 40
Question 1
The Malaysian Government has stated that it wants to promote enterprise and is seeking to
increase the role of market forces in the economy.
(a) Describe the role of entrepreneurs. [4]
(b) Explain two ways that a government could promote enterprise. [4]
(c) Explain, with the aid of demand and supply diagrams, how resources are re-allocated in a
market economy. [6]
(d) Discuss whether it is a disadvantage to rely just on market forces to allocate resources. [6]
Question 2
The economic problem exists everywhere in the world, whatever type of economic system a
country may have.
(a) Giving an example of each, define the four factors of production. [4]
(b) Explain the nature of the economic problem. [4]
(c) Compare how resources are allocated in market and mixed economic systems. [4]
(d) Discuss whether people living in a country would benefit if their countrys economic system
changed from a mixed to a market economy. [8]

Economics 2281
Sr. III-C
January 2016 Test
Time Duration: 1 hour
Total Marks: 40
Question 1
The Malaysian Government has stated that it wants to promote enterprise and is seeking to
increase the role of market forces in the economy.
(a) Describe the role of entrepreneurs. [4]

(b) Explain two ways that a government could promote enterprise. [4]
(c) Explain, with the aid of demand and supply diagrams, how resources are re-allocated in a
market economy. [6]
(d) Discuss whether it is a disadvantage to rely just on market forces to allocate resources. [6]
Question 2
The economic problem exists everywhere in the world, whatever type of economic system a
country may have.
(a) Giving an example of each, define the four factors of production. [4]
(b) Explain the nature of the economic problem. [4]
(c) Compare how resources are allocated in market and mixed economic systems. [4]
(d) Discuss whether people living in a country would benefit if their countrys economic system
changed from a mixed to a market economy. [8]