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Assessment Task – Tutorial Questions Unit Code: HC1072 Unit Name: Economics and International Trade Assignment: Tutorial Questions 2 Due: 11:30pm 19th June 2020 Weighting: 25% Purpose: This assignment...

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Assessment Task – Tutorial Questions

Unit Code: HC1072

Unit Name: Economics and International Trade

Assignment: Tutorial Questions 2

Due: 11:30pm 19th June 2020

Weighting: 25%

Purpose: This assignment is designed to assess your level of knowledge of the key topics covered in
this unit

Unit Learning Outcomes Assessed.:
1. Develop a
oad understanding of the principles of macro and microeconomics in an
economy.
2. Analyze economic environment nationally and internationally and its influence on business
and national economic performance.
3. Critically analyze government’s fiscal and monetary policy and their influences on the
economy and business in general.
4. Comprehend how economies benefit from international trade.
5. Synthesize theoretical and practical knowledge of economics for application in work-life
situations.

Description: Each week students were provided with three tutorial questions of varying degrees of
difficulty. These tutorial questions are available in the Tutorial Folder for each week on Blackboard.
The Interactive Tutorials are designed to assist students with the process, skills and knowledge to
answer the provided tutorial questions. Your task is to answer a selection of tutorial questions for
weeks 6 to 10 inclusive and submit these answers in a single document.

The questions to be answered are;

Week 6
Question 2 (10 marks)
Discuss three parameters for firms operating in an oligopoly market. (2 marks each x 3 = 6 marks)
Even when allowed to collude, firms in an oligopoly will choose to cheat on their agreements with the
est of the cartel. Why? (4 marks)

Week 7
Question 2 (10 marks)
Some advocates of anti-poverty programs claim that fighting poverty is a public good. Explain what
these advocates mean by classifying charity as a public good. (4 marks)
Why do governments tend to run programs that help the poor? Can the private sector be left to run
those programs? Discuss your answer by focusing on externalities (3 marks) and market failure (3
marks).

Week 8
Question 3 (10 marks)
a) Define GDP. What does it measure and track? Why do countries report GDP? (4 marks)
) Suppose you are given the following information about the New Zealand economy, with the
values in billions of Dollars. What is the GDP of New Zealand? XXXXXXXXXX3marks)


Personal consumption $680
Private investment $370
Government expenditure $430
Exports $710
Imports $295

c) Discuss 2 transactions that are not included in the calculation of GDP and provide an example
for each. (1.5 each x 2 = 3 marks)

Week 9
Question 3 (10 marks)
Choose any 2 out of the 4 types of unemployment.
a) Define and discuss that type of unemployment. (2 each x 2 = 4 marks)
) Provide an example. (1 each x 2 = 2 marks)
c) What solutions can governments try to address that type of unemployment. (2 each x 2 = 4 marks)


Week 10
Question 3 (10 marks)
Right now many economies in the world are experiencing a downturn due to the Corona Virus.
a) What kind of fiscal policy can governments use to address the decline? (2 marks)
) What actions will be taken by the government in implementing the fiscal policy that you
described in part a? (4 marks)
c) What will be the effect on Aggregate Demand (if any) as a result of the actions taken in part
? (2 marks)
d) What will be the effect on Aggregate Supply (if any) as a result of the actions taken in part b?
(2 marks)



Submission Directions:

The assignment has to be submitted via Blackboard. Each student will be permitted one
submission to Blackboard only. Each student needs to ensure that the document submitted
is the co
ect one.


Academic Integrity
Academic honesty is highly valued at Holmes Institute. Students must always submit work
that represents their original words or ideas. If any words or ideas used in a class posting or

assignment submission do not represent the student’s original words or ideas, the student
must cite all relevant sources and make clear the extent to which such sources were used.
Written assignments that include material similar to course reading materials or other
sources should include a citation including source, author, and page number.
In addition, written assignments that are similar or identical to those of another student in
the class is also a violation of the Holmes Institute’s Academic Conduct and Integrity Policy.
The consequence for a violation of this policy can incur a range of penalties varying from a
50% penalty through to suspension of enrolment. The penalty would be dependent on the
extent of academic misconduct and the student’s history of academic misconduct issues.
All assessments will be automatically submitted to SelfAssign to assess their originality.

Further Information:
For further information and additional learning resources, students should refer to their Discussion
Board for the unit.

Microsoft Word - Assignment Cover Sheet revised including groups FINAL
Faculty of Higher Education
Assignment Cover Sheet

    Unit Code
    
    Unit Name
    
    Assignment Numbe
    
    Is this a Group or Individual assignment
    
If Group, please provide group number _________
    Due Date
    
Declaration
Complete this and attach as a front cover sheet to your Blackboard submission
We certify that:
1. This assignment is our own work. We have acknowledged and disclosed any assistance received in its preparation and cited all sources from which data, ideas, words (whether quoted directly or paraphrased) were taken.
2. This assignment was prepared specifically for this unit only.
3. The reference list is truthful and accurate and in Harvard referencing style.
     Student name/s
    Student numbe
[must be co
ect]
    Which section(s) did each person work on
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
This cover sheet must be attached to your assignment
Answered Same Day Jun 16, 2021 HC1072

Solution

Komalavalli answered on Jun 17 2021
144 Votes
Microsoft Word - Assignment Cover Sheet revised including groups FINAL
Faculty of Higher Education
Assignment Cover Sheet

    Unit Code
    
    Unit Name
    
    Assignment Numbe
    
    Is this a Group or Individual assignment
    
If Group, please provide group number _________
    Due Date
    
Declaration
Complete this and attach as a front cover sheet to your Blackboard submission
We certify that:
1. This assignment is our own work. We have acknowledged and disclosed any assistance received in its preparation and cited all sources from which data, ideas, words (whether quoted directly or paraphrased) were taken.
2. This assignment was prepared specifically for this unit only.
3. The reference list is truthful and accurate and in Harvard referencing style.
     Student name/s
    Student numbe
[must be co
ect]
    Which section(s) did each person work on
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
This cover sheet must be attached to your assignment
Week 6 Question 2
Oligopoly Market:
Oligopoly is a form of imperfect competition market, in which few large firms produces most of the total output of industry production. Decision on price and output were mutually dependent on the firm.
Parameters for firms operating in the oligopoly:
1.Size of the firm: There are few large firms in the market that has the control over the output production and price determination of that industry.
2.Interdependency: Change in price and output decision will influence the rival firm’s production. Which means if firm A reduces it price level, it will affect the firm B production level by decreasing the demand for firm B’s output.
3.Ba
iers to entry:
Ba
iers to enter in the oligopoly market are Patent and copyrights, exclusive ownership of resources, high cost for establishing a firm and other government restrictions.
4.Production behaviour:
The firm will produce identical/homogenous product or differentiated products.
Cartel decision:
Under cartel decision every firm in the oligopoly market gets together to decide on how much to produce at what level of price the output should be sell. Example for cartel oligopoly is organisation of petroleum exporting countries. Cartel firm of combined output decision will face downward sloping demand curve, this decision made at the level of output where marginal revenue equals to marginal cost of the oligopoly firms. Based on the output level market demand curve will decide the price at the level output chosen by cartel. Cartel oligopoly will act like monopoly because it sells their output at higher price level compared to perfect competition market.
It is hard to maintain cartel agreement because firms will try to cheat other firm by producing output higher than the combined decision output. By producing more firm will able to acquire large number of shares in the market and can earn more revenue, this will result in increasing the firm’s profit. So, there is a...
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