it have 4 question should be answer
8 references(2 for each, ) thx!
question, excluding graphs, tables and reference list)
It is a progressive assignment based on topics studied in weeks 5-8 covering chapters 6 to 10.
Please attempt each question on a weekly basis which will prevent you from asking for extensions.
This assessment item relates to course learning outcomes 4 – 8 as listed in the course profile.
Refer to Chapter 6
(a) Explain with reasons as to why additional advertising (non-price competition) will lead to a smaller and smaller increase in sales of that product. (2 marks)
(b) In the table below an oligopolist firm faces two demand schedules. The current price is given as $185.
Competitors price fixed: Quantity Demanded
Competitors follow: Quantity Demanded
(i) What would the demand curve be under the kinked demand curve hypothesis? Illustrate and explain. (1 mark)
(ii) Plot the marginal revenue curve corresponding to the kinked demand curve and explain. (2 marks)
(iii) Given that Marginal Cost is $150 at every level of output. Copy the above table and
calculate TR and MR. Determine the profit- maximising level of output and plot on the graph. (2 marks) Total = 7 marks
Refer to Chapters 7 & 8
(a) Assume that a firm discharges waste into a river. As a result, the marginal social costs (MSC) are greater than the firm’s marginal (private) costs (MC). The table below shows how MC, MSC, AR and MR vary with output. Assume that the marginal private benefit (MB) is given by the price (AR). Assume also that there are no externalities on the consumption side, and that therefore MSB = MB. Study the table and answer the following questions.
(i) How much will the firm produce if it seeks to maximise profits? (1 mark)
(ii) What is the socially efficient level of output? (1 mark)
(iii) How much is the marginal external cost at this level of output? (1 mark)
(iv) What size of tax would be necessary for the firm to reduce its output to the socially efficient level? (1 mark)
(v) Why is the tax less than the marginal externality? (1 mark)
(b) Explain and illustrate why the demand for labour curve is downwards sloping? (1mark)
(c) Explain and illustrate when a firm receives a surplus over its total wage bill under prefect competition? (1 mark)
Total = 7 marks
Refer to Chapter 9
(a) Explain in terms of the Australian circular flow of income if the following are net injections, net withdrawals or neither? If there is uncertainty, explain your assumptions.
(i) The government purchases US military aircraft. (1 mark)
(ii) The government runs a budget deficit (spends more than it receives in tax revenues) and finances it by borrowing from the general public. (1 mark)
(iii) The government runs a budget deficit and finances it by printing more money. (1 mark)
(b) Give examples and discuss the costs of (i) inflation and (ii) unemployment on the individual, firm, government and the economy as a whole. (2 marks each = 4 marks)
Total = 7 marks
Refer to Chapter 10
(a) Illustrate and explain what effect will the following have on the expenditure line:
(i) An increase in the proportion of people’s income that is saved. (1.5 marks)
(ii) A fall in exports. (1.5 marks)
(b) Using the withdrawals/injections and the income/expenditure approach, show graphically and explain the effects on GDP, consumption and unemployment of a substantial rise in:
(i) Exports (2 marks)
(ii) Government expenditure. (2 marks)
Total = 7 marks
Please Note: “This criteria sheet below will be included with your assessment when marked and returned to you on moodle.”
ECON 11026: Assignment-2 Marking Sheet
Student Name: Student/Number:
ECON11026 : A-2
Marks Out of
Total marks out of 30
Additional Markers Comments:
________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________Markers Name: __________________________ Date: _________________________
Assessment criteria for Written Assessment Item 2
Use the DADA acronym when structuring your answers to all questions in economics. (Definitions: define the key terms; Assumptions: list or make assumptions as required; Diagrams: draw relevant graphs/tables and explain; and original Analysis: apply the theory to real life economic examples and explain).
(i) You must read the chapters each week and work on the assignment questions progressively each week—which will prevent you from asking for extensions. So please follow a weekly study schedule.
(ii) Plagiarism is a real concern, therefore, please remember to reference in-text and also provide a reference list. Do not give your assignment to anyone or copy from other students.
(iii) Concepts and key terms must be defined accurately and completely.
(iv) The assumptions upon which the analysis is based must be stated at the outset.
(v) Diagrams must be drawn properly, correctly labelled and the relations they depict explained on the diagram and in the accompanying text of your answer.
(vi) Answers must be complete, addressing the specific tasks nominated in the questions.
(vii) Sources must be acknowledged in-text and a list of references provided using the Harvard Referencing Style.
(viii)Where a question has more than one part, so too should the answer. Ensure complete coverage in the analysis section of your answer.
(ix) Students should reference more than two (2) to three (3) textbooks to answer these theory based questions as a minimum.
(x) Remember an extension is not a gift, it is a burden.