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1 ECON1020 - Semester 2 2021 Assignment 2: Microeconomic Analysis Report (Instructions) Ravnoor Sachar 2 Assessment Task 2: Microeconomic Analysis Report (40%) This document contains the following...

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ECON1020 - Semester 2 2021
Assignment 2:
Microeconomic
Analysis Report
(Instructions)

Ravnoor Sacha
2

Assessment Task 2: Microeconomic Analysis Report (40%)

This document contains the following sections:
1. Task overview
2. Structure and Submission
3. Submitting the Final report on Canvas
4. Task Steps
5. Supporting Material
6. Criterion Ru
ic

Please read through all these instructions carefully for information on how to complete
your assignment.

1. Task overview
• This assignment is based mainly on Block 1: The Market and Block 2: Government.
Using models and theories of either (1) the market or (2) market failure and
government (i.e. only material from lectures 2 to 6) perform a microeconomic analysis
of one specific appropriate issue or phenomenon of your choice.
• Your task is to conduct microeconomic analysis of an issue that you select yourself,
just as businesspeople and policymakers do. You will be assessed on what you learnt
in the course by co
ectly choosing and applying definitions, methods and theories
from lectures and tutorials 2-6. As this is a microeconomics assignment you should
not write a general or journalistic report or use concepts from other courses not
discussed in this course, including macroeconomics.
• A template document has been provided to use as your assignment document.
2. Structure and Submission
• Assessments task 2 has limit of 1500 words to be submitted on Canvas. Your
submissions should be word processed and contain word count and bibliography. For
every 10%-word count (not counting bibliography) over the limit you will lose 10% of
the assignment marks until it reaches zero. There is no discretionary margin above
this limit. There is no minimum, but you are advised to use all the words allowed for
a more developed and detailed analysis.
• Your submission will receive an automatic Turnitin similarity score that should not
exceed 30%. You should check this score using the tool on Canvas before submitting.
Exceeding this limit raises the risk of your submission being subject to an academic
integrity process. You must attach a completed coversheet with your submission
(coversheet is provided with the submission template document).
• As per University regulations late assignments receive a 10% penalty per day until
the mark reaches zero.
• Marks will be given according to the ru
ics on Canvas.
• You must complete a coversheet attached with the submission template. Do not
emove while submitting.
3

3. Submitting the Final Report on Canvas:
Follow the steps as advised below:
 Download the student template file.
 Complete the coversheet and checklist in the template file.
 Draft all the sections of the template file.
 Delete “all the Instructions in this template that have been written inside square
ackets [ ]”.
 Label your final assignment file (cleaned template file) as ‘AnalysisReport _Tutorial
Activity (located in your timetable e.g. TUT XXXXXXXXXX_Surname’.
 Run it through the “Turnitin Checking Tool” to check your assignment's similarity
score are within permissible limit.
 Submit your assignment (Word or PDF) in canvas.










4

4. Task Steps

See the table below:
The objective of this assignment is to develop your independent thinking and research and
prepare you for work life. Also, there is considerable scope to tailor your assignment (within
the requirements above) based on your own style, chosen topic and method.

Important to Note:

 Discuss your chosen topic and questions with your tutor either in the class or over
emails.
 Ensure you completed your assessment in good time. Managing this project and
your time will be critical for your success.


Table 1: Assessment 2 Steps
1 Choose
topic and
question
Look at the business and economics news for ideas for an appropriate
issue. It needs to fit the purpose of microeconomics (lecture 1) - a topical,
important example of resource allocation with questions you can answer
y applying microeconomic methods from the lectures relevant to the
assignment. State the question, why it’s interesting and economically
significant. Present facts or descriptive data to illustrate. The issue needs
to be a specific (topical or historical) case. This means you will discuss a
specific market for a product, service or factor of production in a specific
context rather than a general economic issue or problem. Also make sure
your topic does not fall within macroeconomics, which is not covered in
this course.
2 Select
your
methods
(concepts
and
models)
Select the right method (i.e. microeconomic model, theory or tool from
lectures and tutorials 2-6 to answer your question.
3 Explain
your
concepts
and
models
Explain your method. Assume your reader needs to be explained every
concept and model needed to follow your analysis, as if you are teaching
your reader these.
4 Analyse
your topic
Apply the method to your issue. Report the different steps of your
analysis and your findings. Typical analysis applies the tools from the
elevant lectures to your specific case. Use relevant diagrams or models
as they answer the question better than only words. If your chosen
method comes with such models (e.g. diagrams or graphs), not using
these in your assignment will result in a significant loss in marks.
5 Conclude Your conclusion will directly answer the question and maybe look at the
ig picture - the significance and limitations of your work. Provide answer
to questions like: What have we learnt from your analysis for business or
government policy? So what?
5

5. Supporting Material

1. See the “Microeconomic Case Analysis” section from tutorials 2 to 6 to get an idea on the
topic, questions, and analysis. Summarized in the Table below:

Table 2: Sample Assessment 2 Topics from Lectures and Tutorials (DO NOT
USE - FOR ILLUSTRATION ONLY)
Topics Potential Methods (concepts and
models)
Tutorial 2: Tax on luxury cars Consumer Behaviour, Incentives and
Demand Elasticity
Tutorial 3: Impact of 2011 Flood in
Thailand on Computer Market
Shifts in Demand and Supply Curves,
Comparative Statistics
Lecture XXXXXXXXXXCoffee Prices Comparative Statics
Tutorial 4: Rent Controls Comparative statics, Elasticity,
Government Intervention, Market-
Based Regulation
Tutorial 5: Toll on busy roads Common Pool Goods, Externality,
Government Intervention, , Market-
Based Regulation, Opportunity Cost
Tutorial 6: ‘Net Enforcement Law
((NetzDG)’ of Germany
Externality, Government Intervention,
Direct Regulation, Paternalism




2. Additional (Web) Resources on Canvas page for each week module. This will help
you to get an idea of the kind of articles or issues you can focus on while writing your
eport.

3. There is full module available to you on Canvas with slides and videos to help you
with writing this report. This module covers all the aspects of academic report writing
such as ‘choosing topic & questions, ‘finding information’, ‘Reading for
understanding’, ‘academic writing’ ‘academic integrity’ and ‘communication etiquette’.
Refer to the module 'Writing Economic Reports' on canvas.










https:
mit.instructure.com/courses/77524/modules/720754
6



6. Criterion Ru
ic (Total 40 Marks)

Criterion Marks Comment
Criterion 1: Choice of an appropriate,
original specific topic amenable to
microeconomic analysis and
formulation of an appropriate question
about it.
8/40
marks
Pertains to ‘Introduction’ section of
the report. Complete step 1 from the
Table 1: Assessment 2 Steps to
fulfill this criterion
Criterion 2: Selection of relevant
course models and concepts from the
course syllabus to analyse the topic.
6/40
marks
Pertain to ‘Concepts and Models’
section of the report. Complete step
2 & 3 from the Table 1: Assessment
2 Steps to fulfill these criterions Criterion 3: Co
ect explanation of
chosen course models and concepts
in sufficient detail.
6/40
marks
Criterion 4: Co
ect and detailed
analysis, i.e. application of relevant
course models and concepts to
analyse the topic.
12/40
marks
Pertains to ‘Analysis’ section of the
eport. Complete step 4 from the
Table 1: Assessment 2 Steps to
fulfill this criterion
Criterion 5: Drawing co
ect and
elevant conclusions from analysis for
economic and/or business policy.
6/40
marks
Pertains to ‘Conclusion’ section of
the report. Complete step 5 from the
Table 1: Assessment 2 Steps to
fulfill this criterion
Criterion 6: General (Structure and
Language)
2/40
marks
-

[Instructions in this template that have been written inside square
ackets [ ] can be deleted from your final document when you submit your assignment]
Microeconomic Analysis Report
[ Maximum 1500 words]
[You must compose this report according to this template. Ensure that your report includes each of the elements detailed in the template and that you do not reorder, rename, or omit any of these elements.]
Topic:
Introduction
[Maximum 300 words, refer to step 1 from ‘Table 1: Assessment 2 Steps’ & Section 6 ‘criterion ru
ic’ from instruction document as guidance]
Concepts and Model
[Maximum 500 words, refer to step 2 & 3 from ‘Table 1: Assessment 2 Steps’ & Section 6 ‘criterion ru
ic’ from instruction document as guidance]
Analysis
[Maximum 600 words, refer to step 4 from ‘Table 1: Assessment 2 Steps’ & Section 6 ‘criterion ru
ic’ from instruction document as guidance. You should include graphs here for better exposition.]
Conclusion
[Maximum 200 words, refer to step 5 from ‘Table 1: Assessment 2 Steps’ & Section 6 ‘criterion ru
ic’ from instruction document as guidance. You should include graphs here for better exposition.]
Bibliography
[List all of the references that you have used in your assignment. References do not count towards your total word count]
Answered 3 days After Oct 07, 2021

Solution

Komalavalli answered on Oct 11 2021
137 Votes
Market failure associate with the Cigarette
Cigarette market a huge economic cost for society and people, not just in productivity and healthcare terms, as well as in association of lost quality and length of life. Market failure is considered as an ineffective allocation of commodities and services in the capitalist model. Individual incentives for rational behavior do not result in policies appropriately for the collective in the case of market failure.
Cigarettes are a negative good, which is an item that the market oversupplies, and its usage is bad to society. Tobacco has negative impact for the general public because they possess a negative externality. This is owing to the fact that cigarette use has an unintended consequence on third parties for whom no compensation is offered. In the case of cigarettes, the benefit to the customer outweighs the benefit to society. As a result, the marginal benefit to the society is lower than the marginal benefit to consumer.
Tobacco includes highly addictive nicotine, and smoking is a significant risk factor for cardiovascular and respiratory diseases, over 20 different types or subtypes of cancer, and a number of other serious health concerns. Tobacco use claims the lives of more than 8 million people each year. The vast majority of tobacco related deaths occur in medium and low income countries, which are typically the target of heavy tobacco industry participation and promotion.
HTPs burn nicotine and exposes users to hazardous fumes, many of which cause cancer and are harmful to one's health. Electronic nicotine delivery systems (ENDS) and electronics non-nicotine delivery methods (ENNDS), also known as e-cigarettes, might not even contain tobacco and may or may not contain nicotine, but they are undeniably detrimental to one's health. It is, however, too early to provide a definite answer concerning the long-term implications of e-cigarette usage or HTPs.
Nonsmokers can potentially die as a result of tobacco use. 2nd smoke inhalation has also been linked to negative health effects, resulting in every year, 1.2 million people die. Nearly half of all children
eathe tobacco-polluted air, and each year, 65 000 children die as a result of illnesses induced by 2nd smoking. Cigarette smoking during pregnancy can cause a variety of long-term health problems for babies.
Tobaccos are used by an estimated 1.3 billion individuals globally, with 80 percent of them living in low and middle income nations. Tobacco usage leads to poverty by shifting their housing expenditure away from essential requirements like shelter and food and toward tobacco. Since tobacco is so addicting, it is tough to halt this spending habits. It also leads to the early death and incapacity of productive-age people in families, resulting in lower family income and higher healthcare expenses.
By accumulation to the negative influence of health by tobacco, the overall cost to the economy of smoking (including health expenses and decreased productivity) is estimated to be about US$ 1.4 trillion per year, which is comparable to 1.8 percent of...
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