Answer ALL the questions in this section.

$[100$ MARKS$]$

Type ONLY the letter that represents the correct answer next to the corresponding number in your online answer booklet. E$.$g$.26$ B

QUESTION $1$

$(4$ Marks$)$

Since $2020,$ there has been a global shortage of semiconductors. These are important parts useful in creating phones, cars, and medical devices. The shortage was due to the supply and demand mismatch, which resulted from factors like increased demand for semiconductors in various industries, difficulties in getting the required materials, and unexpected events like factory fires and the COVID$-19$ pandemic. To address this shortage, the private sector is working to increase production, manage supply chains more effectively, and design products that use semiconductors efficiently.

The situation described regarding the global semiconductor shortage primarily exemplifies microeconomics for the following reasons EXCEPT.

a$.$ The shortage impacts specific sectors like the electronics and automotive industries

b$.$ The shortage was a result of a shortage of $30000$ semiconductors

c$.$ Industry$-$specific adjustments are made, i$.$e$.$ efforts to increase production, optimise supply chains, and improve product designs

d$.$ The situation focuses on how specific markets react to changes in supply and demand

QUESTION $2$

On Saturday morning, you rank your choices for activities in the following order: go for a walk on the beach, going to the office for work, have brunch with friends, and sleep late. Suppose you decide to go to the walk on the beach. Your opportunity cost is:

a$.$ Going to the office for work, having brunch with friends, and sleeping late.

b$.$ zero because you do not have to pay money to walk on the beach.

c$.$ Going to the office for work.

c$.$ not clear because not enough information is given.

QUESTION $3$

$(4$ Marks$)$

In terms of the circular flow model of income and spending the following elements are all flows:

a$.$ Production

b$.$ Income

c$.$ Production, income and spending

d$.$ Income and spending

QUESTION $4$

$(4$ Marks$)$

Consider the market for laptops in $2023.$ Between $2023$ and $2024,$ the equilibrium price of laptops remained constant, but the equilibrium quantity of laptops increased. From this, you can conclude that between $2023$ and $2024,$ the supply of laptops and the demand for laptops

$(4$ Marks$)$

a$.$ Decreased; increased

b$.$ Increased; decreased

c$.$ Decreased; decreased

d$.$ Increased; increased