Eco211 - Infographics - Group 5

ECO211 JBA1143C
Semester October 2020 – February 2021

Group Assignment

INFOGRAPHICS
Title Assigned: ECO211 COURSE ASSESSMENT

GROUP 5
REF NO NAME MATRIC NO
1 FARAH IRDINA BINTI MD NASIR 2019433196
12 MUHAMMAD HANIF BIN MOHAMMAD ASSRI 2019666714
16 NUR AMANINA BINTI YUSRI 2019202514
20 NUR MUSFIRAH BINTI MUSTAFA 2019214528
23 REDZUAN HAKIM BIN MOHD HISHAM 2019806278

ECO211 MACROECONOMICS
Revenue Sources
Tax Revenue
DIVIDED INTO 2 TYPES ; DIRECT TAX AND INDIRECT
TAX
Examples: Individual Income Tax (Direct Tax), Service Tax (Indirect
Tax).
Non-Tax Revenue
A REVENUE WHICH ARISES FROM OTHER SOURCES
BESIDES TAX
Examples: Licenses and Permits, Returns on Investment
Zakat Fitr
A THIRD PILLAR IN ISLAM'S BELIEFS AND
OBLIGATORY FOR EACH MUSLIM TO PAY IN THE
CORRECT TIME
Example: Zakat fitr are paid before the end of the fasting month that
is Ramadan
Kharaj
AGRICULTURAL TAX IMPOSED ON THE NON-MUSLIMS
Examples: The tax will only be imposed on agricultural land only and
not the residency land
Current Issues
TOBACCO INDUSTRY
Government has begun to levy taxes on cigarettes and tobacco
products at all duty-free islands and zones. This is good for our
country because this will maximize our country's revenue and also
reduce the number of smokers at the same time.
LAYOUT BY MUHAMMAD HANIF

Inflation &
Unemployment in
Economy
Effect of Inflation
SAVINGS
Amount of saving reduce due to prices go up in the future
People who save their money will earn interest
When the inflation high, bank will pay higher interest rate
Effect of Inflation
PRODUCTION
General level of prices increase, level of production and investment
increase
Lead to more job opportunities
Reduce unemployment
Effect of Unemployment
INDIVIDUAL EFFECT
Unable to earn money to pay for the debt
Lead to be homeless due to loss of income
Unemployed individuals usually have low self-esteem
Effect of Unemployment
ECONOMIC EFFECT
Economy is operating below its production and lead to not fully
utilized in the economy
Higher unemployment cause a fall in tax revenue
Government spend more on unemployment benefits
Current Issue
DUE TO THE PANDEMIC, COVID-19
Malaysia got affected in the unemployment crisis
Malaysia-based airlines such as Air Asia cut off their workers.
LAYOUT BY NUR MUSFIRAH

Tools of Monetary
Policy to Overcome
Inflation
Raising Required Reserve Ratio
QUANTITATIVE
The ability of commercial banks to provide loans ↓

Credit creation ↓
Money supply ↓
Aggregate demand ↓
Inflation rate ↓
Raising the Interest Rate

QUANTITATIVE
Amount of savings ↑
Demand for goods and services ↓
Demand for money ↓
Purchasing activities ↓
Selective Credit Control

QUALITATIVE
1. Hire purchase
the banking system may also lay down rules for the higher
minimum down payment and maximum repayment.
2. Capital issue control
BNM will issue directives to banks to provide loans only to
certain goods or businesses for productive purposes
Special Directive
QUALITATIVE
The BNM is allowed to impose directives and instructions

to banks :
To reduce the total credit limit on the amount banks
can lend
On rates which banks can expand their total rates
Current Issue
WHEN COVID-19 IS SMASHING SOCIAL LIFE AND
RAVAGING ECONOMIES
BNM has brought down the statutory reserve ratio

(SRR) from 3% to 2% in order to manage liquidity in
the financial system and overcome inflation.
LAYOUT BY FARAH IRDINA

PROTECTIONISM
TOOLS
Tariff
A TAX ON IMPORTS
Prices of goods increases, consumption of the good taxes decreases.
Ad Valorem Tariff - the value of the goods.
Specific Tariff - the quantity of the goods are being imported.
Quota
LIMITS ON THE QUANTITY OF IMPORTED GOODS
Pressure on prices of goods that lead to a rise in market prices.
The demand for imported goods is declining because it is more
expensive.
Subsidies on export
GIVES SUBSIDIES TO DOMESTIC FIRMS TO PRODUCE
GOODS AND SERVICES TO EXPORT
Be more competitive to reduce the cost of production.
Exporter's revenues increases.
Increased domestic outputs, exports and export revenues.
Embargo
DIRECT CONTROL BY GOVERNMENT TO PROHIBIT
CERTAIN GOODS & SERVICES ENTERING MALAYSIA
Restrict trade because of political.
Total ban some items due to different ideologies.
Current Issue
A TOTAL OF RM1.7 BILLION IN SUBSIDIES, ASSISTANCE AND
INCENTIVES BY MALAYSIAN GOVERNMENT
To farmers and fishermen.

RM570 million for paddy prices and RM960 million for paddy
planting incentive.
To boost the economic status of local farmers.
LAYOUT BY NUR AMANINA

Measures to correct
deficit balance of
payments
Promoting Exports
INCREASE THE VALUE OF EXPORT TO REDUCE THE
DEFICIT IN BALANCE OF PAYMENTS
Impose subsidies for goods and services exports.
Promoting local products to international markets.
Discourage Imports
REDUCE CASH OUTFLOWS BY REDUCING MPORT
DEMANDS
Impose high tariff on imported goods and services.
Set a quota limit on imported goods and services.
Using Reserves
RESERVES IN FORM OF GOLD AND FOREIGN
CURRENCIES.
Can be used as payment to correct the deficit.
Cannot be used too often as it will cause critical reserve
depletion.
Devaluation
LOWERING THE COUNTRY'S CURRENCIES VALUE
Will reduce g&s import as foreign currencies are expensive.
Increase g&s export as foreigners can purchase with lower price
Current Issue
TAX INCENTIVE AMID COVID-19 PANDEMIC
Government impose a 10% income tax rate for a period of 5
years and renewable for another 5 years.
Stimulate export activities
LAYOUT BY REDZUAN HAKIM

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ECO211 JBA1143C

Semester October 2020 – February 2021

REF NO NAME MATRIC NO

1 FARAH IRDINA BINTI MD NASIR 2019433196

12 MUHAMMAD HANIF BIN MOHAMMAD ASSRI 2019666714

16 NUR AMANINA BINTI YUSRI 2019202514

20 NUR MUSFIRAH BINTI MUSTAFA 2019214528

23 REDZUAN HAKIM BIN MOHD HISHAM 2019806278

LAYOUT BY MUHAMMAD HANIF

LAYOUT BY NUR MUSFIRAH

The ability of commercial banks to provide loans ↓

Raising the Interest Rate

Selective Credit Control

The BNM is allowed to impose directives and instructions

BNM has brought down the statutory reserve ratio

LAYOUT BY FARAH IRDINA

To farmers and fishermen.

LAYOUT BY NUR AMANINA

LAYOUT BY REDZUAN HAKIM

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