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)