Introduction to Microeconomics; understanding scarcity, demand and supply in economics
economics
Description
Managerial Economics - Assignment
Course Learning Outcomes Covered
Course Learning
Outcomes (CLOs):
1.
Introduction to
Microeconomics; understanding scarcity, demand and supply in economics
2.
Develop a fundamental
understanding of Elasticity, production costs and perfect competition
3.
Analysing the various
types of monopolies and the different labour markets.
4.
Distinction between
different market structures and different business strategies; understanding
globalisation and exchange rate policies.
CLO 1, 2, 3, 4
1.
Traffic congestion is a problem in many cities. Among the possible
ways of reducing congestion are allocating more resources to building roads,
taxing petrol and subsidizing
a. bus travel.
o
Describe how
resources are allocated in a market economy. [ 250 words]
o Explain why the social costs of car
use are greater than the private costs. [250 words]
o Using the principles of demand and
supply, describe the effect of a tax on petrol on the market for petrol. [250
words]
o Discuss whether bus travel should be
subsidised by the government. [250 words]
2.
The demand of luxury cars decline if the price of the luxury cars
declines as the prestige associated with having a luxury car also declines.
Does this statement contradict the law of demand? Explain the answer with the
help of supporting statements.
(1000 words)
3.
A large country is more open to adopt a flexible exchange rate
than a small country.
Critically evaluate this statement
with examples. (1000
words)
4.
Define and give an example of each of the following demand terms
and concepts. Illustrate with the help of a graph: (250 words per question)
·
Demand and supply
·
Marginal costs
·
Price elasticity
·
Monopoly
·
Oligopoly
