Question 1 (50 Marks)

Do an online search and select a company in Malaysia which is involved in the finance industry. Provide a brief description of the company and describe how the government policies or intervention (i.e. corporate tax, subsidies and environmental protection), as well as technological change has affected the company and its business over the last few years (3 to 5 years). Reinforce your answer with reference to any models and theories you deem appropriate.

Question 2 (20 Marks)

(a) Discuss the factors that affected the general demand of retail spaces (in shopping complexes) in Malaysia in 2021/22 compared to 5 years ago (before 2016/17). (10 marks)

(b) Discuss the factors which may result in changes (increase or decrease) in the supply of retail spaces (in shopping complexes) in Malaysia in 2021/22 compared to 5 years ago (before 2016/17). (10 marks)
Question 3 (30 Marks)

a) Based on your opinion, discuss how the elimination of direct subsidies such as subsidies for petrol and electricity given by the government to the citizens in Malysia, can help the government manage the economy effectively. (20 marks)
b) Discuss the problems of using taxes to redistribute incomes of the citizens. (10 marks)

Answers to Above Questions on Microeconomics

Answer 1: The company that is selected for the purpose of analysis is May Bank from the finance industry. May bank is also known as Malayan banking Berhad and it is one of the largest banks in Malaysia in terms of market capitalisation and total assets. The government decisions have a direct implication on businesses operating in an economy, and the given case of May Bank is selected to analyse the impact of government intervention on the performance of the bank.

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