university college sabah foundationFACULTY OF MANAGEMENT & ENTREPRENEURSHIPMBB2303 MICROECONOMICS”individual assignment”STUDENT NAME MuaazPROGRAMME Diploma in Business ManagementMATRIC NO DBM18041095LECTURER Mr. Jain YassinSUBMMISSON DATE Table of Contents page1.0 Introduction 22.0 Task 1 2.1 Task 1.1 10-193.0 Task 2 3.1 Task 2.
1 3.2 Task 2.2 20-224.0 Summary 26-275.0 References 28-29INTRODUCTIONEconomics is a study to analyse the economic activity of people in order to fulfill their needs and desire. It is also categorized as a social science that span from mathematics and psychology.
Human being wants are the main point that provide the basis for economics. An economic activity refers to an activity that can help people to gain valuable goods such as smartphones,expensive watch, and luxury cars. Humans have certain basic needs which is food,shelter and clothing. But human desires is never satisfied and will never end. Instead, it will increase depending on changing of times.
(Vengedasalam & Madhavan, 2013)Vengedasalam, D., & Madhavan, K. (2013).
Principle of Economics (3rd ed., p. 1).
Shah Alam, Selangor Darul Ehsan, Malaysia: Oxford Fajar Sdn. Bhd.TASK 1 Identify and discuss at least FIVE (5) factors that lead outward shift in its Production Possibility Curve (PPC) Production Possibiities Curve (PPC) can be described as a hypothetical representation of the amount of two different goods that can be obtained by shifting resources from the production of one to the production of the other. The curve can be best described as a society’s choice between two goods. However, there are several factors that can cause a shift in the PPC which is : Economic Growth The PPC bounds outward when the country enjoys economic growth. With economic growth, the country’s production capacity is increasing due to the expansion of resources such as land, labour, capital and entrepeunership. The increase in production is due to the availability of new sources, machines and productivity improvements. Natural resources can be exhausted or reduced when a nation is struck by a natural disaster such as landslide, hurricane, tsunami and earthquake.
This may caused the decrease in outputs and economic growth will decline.(Vengedasalam & Madhavan, 2013)Vengedasalam, D., & Madhavan, K. (2013). Principles of Economics (3rd ed.
, p. 11). Shah Alam, Selangor Darul Ehsan, Malaysia: Oxford Fajar Sdn. Bhd.Technological AdvancesThe improvement in technology will also increase the country’s production capacity.
The probable cause of the increase in production is the new innovation, new applications and efficient techniques of production, or development of a better way to produce goods and services.PopulationThe increase in population can also lead to the transition of ppc outwards. As the number of population increase, the number of production will also increase. However, the migration of workers will result in the reduction in population.Discovery of resourcesThis is also the main factor that influence the PPC to shift outward which is the discovery and exploitation of resources.
The resources that has been discovered will then used to produce goods and services.