END OF CHAPTER 2 MACRO

POLITEKNIK MERSING
COMMERCE DEPARTMENT

DPB20033
MACROECONOMICS

END of CHAPTER 1

GROUP MEMBERS:

NURUL NATASYA BINTI MOHD JAHRI 25DPM20F1006
NUR RAIHAN BINTI SULAIMAN 25DPM20F1019

PREPARED FOR:
PN. MASLIZA BINTI MAZLAN

DECEMBER 2020

1) a) GDPmp = Household consumption + Gross private investment + Public investment +
Government expenditure + Constructions + Change in stock + (Export –
Import)
= 76460 + 20890+ 25630+ 25300+ 56410 + (- 4250) + (22500 – 13050)
= RM 209,890 Million

b) GDPfc = GDPmp - Sales and services + Subsidies
= 209,890 – 5360 + 7600
= RM 212, 130 Million

c) GNP fc = GDPmp + Net Factor income from aboard – Sales and services + Subsidies
= 212,130 + 29000 – 5360 + 7600
=RM 243,370 Million

d) National Income = GNPfc – Capital Consumption
= 243,370 – 7220
= RM 236,150 Million

e) Personal Income = National income + Transfer Payment + Retained earning – Corporate
Income Taxes – Employees Provident Fund Contribution – Insurance Premium

= 236150 + 12700 + 4860 - 13590 – 12510 -2840
= RM 224,770 Million
f) Disposable Personal Income = Personal Income – Personal Income Tax
= 224,770 – 9400
= RM 215,370 Million
g) Per Capita Income = National Income

Total Populations
= 236150

38
= RM 6214.47

2) a) Net Interest = Gross Interest – Interest Government Loan- Interest on Consumer Loan
= 990 – 100 – 90
= RM 800 Million

b) Corporate profit = Corporate Income Before Taxes
= RM 710 Million

c) National Income = Wages & Salaries + Net Interest + Rent + Corporate Income Before
Taxes

= 1080 + 800 + 645 + 710
= RM 3235 Million

d) GNPfc = National Income + Depreciation
= 3235 + 250
= RM 3485 Million

e) Net Factor Income from Abroad
GNPfc = GDPfc + Net Factor Income from Abroad
3485 = 4370 + Net Factor Income from Abroad
= 4370 – 3485
= RM 885 Million

3) a. Cost Living
➢ The definition of cost of living is the basic cost of food, clothing, shelter and fuel
required to maintain life at a standard considered basic or minimum. Another
definition of cost of living is the average expenditure of a person of family over a
period of time

b. Three (3) Countries that’s have a highest cost of living rank.
1) Singapore
2) Thailand
3) Philippines

c. 1. Education
Most of the city that have high cost of living are have highly competitive and well

renowned international schools. This advantage allows families to plan for the future of their
children to get a good education.

2. Healthcare

Country like Singapore are known to have top of the line healthcare facilities and services.
For those are having a serious illnesses like cancer can avail to 100% coverage from the state
health insurance. So their health care is well guaranteed.

d) Yes, it is accurately show that Malaysia's living cost are cheaper than Singapore. It is
because according to workforce aspect, Malaysia has a larger population of 32 million, as
compared to Singapore’s 5.7 million. However, Singapore is working on a future economy
that is different and leaner, helped by a quicker adoption of technology, faster pace of
innovation, and higher productivity. Next, when it comes to trade, Singapore’s domestic
market remains one of the world’s most open. In addition, 99.7 per cent of goods enter
Singapore are duty-free. After that, based on Forbes’ Best Countries to Do Business Report
2017 has classed Singapore in 9th place globally. It is caused of country’s performance in
trade freedom, technology and lightness of a tax burden. Moreover, Malaysia has higher
income tax rates and a more complex system of indirect taxation compared to Singapore.
Also, World Economic Forum’s Global Competitiveness (2017-2018) showed Singapore
ranks #11 in the world for its total tax rates, while Malaysia ranked #81.