Name : Vira Naharis Maulidah Darojat

Nim : 1961288
Class : Management Kp 4

Part 2 : Unit 8
 Exercises Text A
1. a.) Our basic needs are simple, but our additional individual wants are often very complex.
b.) - Utility should not be confused with usefulness.
- Utility determines the relationships between a consumer and a commodity.
c.) A vegetarian does not want meat, bur may rate the utility of bananas very highly, while
a meat-eater may prefer steak.
d.) A mountain-republic like Switzerland has little interest in submarine, while maritime
nations rate them highly.
e.) In wartime, the utility of bombs is high, and the utility of pianos is low.
f.) If paper is freely available, people will not be so interested in buying too much of it. If
there is an excess of paper, the relative demand for paper will go down.
g.) We can say that the utility of a commodity therefore decreases as the consumer’s stock
of that commodity increases.

2. a.) [F] False e.) [T] True

b.) [T] True f.) [F] False
c.) [T] True g.) [T] True
d.) [F] False h.) [T] True

3. a.) i. In peacetime bombs are not in very great demand, while in wartime their utility is
very high.
ii. In peacetime on the one hand bombs are not in very great demand, while in wartime
on the other their utility is very high.
b.) i. Bananas may satisfy one kind of want, while textbook satisfy an entirely different
need.
ii. Bananas on the one hand may satisfy one kind of want, while textbook on the other
satisfy an entirely different need.
c.) i. Meat-eaters may enjoy both beef and bananas, while vegetarians value only the
bananas
 ii. Meat-eaters on the one hand may enjoy both beef and bananas, while vegetarians on
the other value only the bananas.
d.) i. A product’s utility may be very high in a certain part of the world, while in a different
part of the world its utility may be very low.
ii. A product’s utility on the one hand may be very high in a certain part of the world,
while in a different part of the world its utility on the other may be very low.
e.) i. Some people may prefer to save their money and invest it in a secure and profitable
scheme, while some may prefer to buy a particular commodity which the have wanted
for a long time.
ii. Some people on the one hand may prefer to save their money and invest it in a secure
and profitable scheme, while some on the other may prefer to buy a particular
commodity which the have wanted for a long time.

4. a.) The economic system should not be studied in an unscientific way

b.) A communist goverment should not be expected to concern itself with private profits.
c.) The goverment of a capitalistic country should not be expected to concern itself with
detailed central planning.
d.) A capitalistic system shoudl not be regarded as completely free of central planning.
e.) These factors should not be considered the most important in helping us to improve the
quality of the service.
5. a.) additional
b.) characteristic
c.) maritime
d.) tastes
e.) priorities
f.) sharply
g.) quantity
h.) decreases
  Exercise Text B
1. a.) In some system it is of course possibl for an individual to bargain over prices, because
they are not fixed in advance.
b.) Individual cannot change the prices of the commodities he wants.
c.) When planning his expenditure, he must therefore accept these fixed prices.He must
also pay this same fixed price no matter how many units he buys.
d.) If he buys more, he shows that his satisfaction is still greater than his dislike of losing
money.
e.) With each successive purchase, however, his satisfaction compensates less for the loss
of money.
f.) A point in time comes when the financial sacrifice is greater than the satisfaction of
eating bananas. The consumer will therefore stop buying bananas at the current price.
g.) The each purchaseis unchanged, if the purchase no better or worse than before.
h.) Their marginal utility to the consumer has, however, changed.
i.) If the price had been lower, he might have bought more.
j.) The consumer’s desire for a commodity tends to diminish as he buys more units of that
commodity.

2. a.) [T] True f. [T] True

b.) [F] False g. [T] True
c.) [T] True h. [F] False
d.) [T] True i. [F] False
e.) [T] True j. [T] True

3. a.) The prices is fixed by The goverment

b.) The prices is fixed by them in advance
c.) The current price is paid by him
d.) The consumer is satisfied by the commodity
e.) The policy has been changed by the goverment
f.) Additional supplies has been produced by them for the men
g.) Various valuable minerals have been obtained by them in that area
h.) The various economics systems have been classified by economists
 i.) Certain things are planned by the goverment even in a dedicated capitalist economy
j.) A special scheme was prepared by the committee
4. a.) When preparing a new product, a company must spend a large amount of money.
b.) When deciding production targets for a period of years, a goverment must establish its
priorities very clearly.
c.) When making a decision over the number of employees which will be needed, the
management of a factory must consider everything very carefully.
d.) When trying to incrase efficiency in production, a planning body should decide what
factors are most important.
e.) When considering problems of distribution, businessmen should investigate all the
methods currently in use and decide objectively whether they can be improved.

5. a.) buy + er = buyer j.) begin + er = beginer

b.) sell + er = seller
c.) use + er = user
d.) work + er = worker
e.) bank + er = banker
f.) min + er = miner
g.) produc + er = producer
h.) organiz + er = organizer
i.) manag + er = manager
k.) breed + er = breeder
l.) perform + er = performer
m.) breed + er = breeder
n.) house own + er = house owner
o.) taxpay + er = taxpayer
p.) whiskey + er = whiskeyer
q.) bank + er = banker