Description

Assessment 1: Short answer questions: External students only (15%)

Students are required to submit written answers to all of the following three (3) questions.

Question 1:  Question 1.4 from Chapter 2, page 50 of Hubbard et.al. 4th edition, Essentials of Economics (2019).

1.4       Draw a production possibility frontier showing the trade-off between the production of wheat and the production of barley.

a          Show the effect that a prolonged drought would have on the initial production possibility frontier.

b          Suppose genetic modification makes barley resistant to insects, allowing yields to double. Show the effect of this technological change on the initial production possibility frontier.

Question 2: Question 1.8 from Chapter 3, pages 80-81 of Hubbard et.al. 4th edition, Essentials of Economics (2019).

1.8       State whether each of the following events will result in a movement along the demand curve for McDonald’s Big Mac burgers or whether it will cause the curve to shift. If the demand curve shifts, indicate whether it will shift to the left or to the right and draw a graph to illustrate the shift.

a          The price of Hungry Jack’s Whopper burgers declines.

b          McDonald’s distributes vouchers for $1.00 off on a purchase of a Big Mac.

c          A shortage of potatoes causes the price of fries to increase.

d          KFC raises the price of a bucket of fried chicken.

e          The Australian economy enters a period of rapid growth in incomes.

Your answer should include details of your reasoning for each part of this question.

Question 3: 

a)     Explain of the main determinants of the price elasticity of demand. 

b)     Then answer Question 4.3 from Chapter 4, pages 122-123 of Hubbard et.al. 4th edition, Essentials of Economics (2019).

4.3       Following the devastating effects of the floods in Queensland in 2011 which, among other things, damaged many banana plantations, the price of bananas increased significantly, from about $2.50 per kilogram to about $12 per kilogram. A typical consumer reaction was:

I will not buy bananas when they are $12 per kilogram. I can substitute other fruit for bananas. If the price of milk were to increase to $5 per litre, we’d still have to buy it. But bananas are not that important in our family.

a          For the above consumer’s household, which product has the higher price elasticity of demand: bananas or milk? Briefly explain.

b          Is the cross-price elasticity of demand between bananas and other fruit positive or negative for this consumer? Briefly explain.

Answers should be approximately one page each, some answers may be longer when graphs are included. The total word limit for all three short answers should be approximately 750 words.

Your assignment must:

·        be typed in a single Word document

·        be double spaced

·        use Times New Roman font, size 12.

·        have normal margins.

External Students: Electronic assignment submission

Your assignments is to be submitted electronically via LMS, in Microsoft Word, and be submitted as a single file.

So that your work doesn't get mixed up with others', use a filename which follows the convention: unit code, assignment number and your name.

Late Submissions:

·        Late submissions will be penalised by 10% per day in accordance with the Assessment Policy. A weekend is counted as two days. Any time after the due time will be counted as one day late.

·        Assignments WILL NOT be accepted if received more than ONE WEEK after the due date and time.

·       If you are facing difficulties in completing your assignment, you should consult your Unit Coordinator before the due date, in writing, providing evidence to substantiate the reasons for the request for an extension. It is at the Unit Coordinator’s discretion whether or not an extension is granted.

·        Essays or assignments containing any plagiarism or apparent breaching of Academic Integrity will be reported to the University and may be awarded a grade of zero.

·        For your own protection, all students must always ensure that they keep a copy of all submitted work.

Learning outcome/s and Graduate Attributes

Completing this assignment will help you achieve the following learning outcomes:

·        ULO1:   Evaluate and apply the aims and purpose of economics to real world scenarios.

·        ULO2: Analyse contemporary economic scenarios by applying the main concepts, terminologies and tools of economic analysis.

·        ULO4: Use economic data correctly to interpret economic situations and generate conclusions.

·        ULO5:   Research and argue economic issues and policy.

·        ULO6:   Communicate an understanding of current economic issues.