Bbm 501/03 Economic Environment Of Business

BBM 501/03 Economic Environment of Business

Tutor-Marked Assignment 1 (TMA 1 – 20%)

Submission Date: Before 11: 59 pm on 30th August 2009

Tutor-marked Assignment 1 Instructions: 1. This assessment covers topics you have learnt in Unit 1 and Unit 2. This is an individual assignment. No duplication of work will be tolerated. Any plagiarism or collusion may result in disciplinary action. 2. Answer ALL the questions. 3. Please write your answers in short essay format. Do not answer in point-form, unless the question mentioned “List” or “State”. You don’t have to write sections of introduction or conclusion in your answers. Just answer directly to what the question is asking. 4. The total marks for TMA 1 is 100 and this contributes 20% towards the total grade of the course. 5. Please submit your answers through online submission before 11.59pm on 30th August 2009.

Answer All Questions 1. Answer both questions. a) Discuss the three dominant macroeconomic principles. (20 marks) b) Discuss how these three principles effect on the business environment in Malaysia. (20 marks)

2. Discuss how various aspects of business environment could have influenced Proton’s performance. (20 marks) 3. Answer both questions. a) Assume, your brother has bought a ground floor of storey shop house. He has three alternatives to use it: A, B, C. The revenue for each use is RM 10 for A, RM 15 for B and RM 21 for C. The accounting cost of each use is zero. i) Calculate the opportunity cost of using the floor for use C. (6 marks) iii) What will be the economic profit of using the floor for use B. (6 marks) b) i) define historical cost (4 marks) ii) define price discrimination (4 marks)

4. How do we analyse the impact of a sudden increase in Government Tax for tobacco? Discuss the effect to consumers, retailers and manufacturers. (20 marks)