Reflective Assessment 1:
Due date: Week 2 Session 4
TOTAL MARKS= 25. THE MARK WILL BE CONVERTED TO 30 PERCENT.
PLAGIARISM - ALLOWABLE SIMILARITY INDEX IS 20%
PLEASE NOTE THAT:
1. STUDENTS MUST USE GRAPHS WHEREVER POSSIBLE TO ANSWER THE QUESTIONS;
2. EXPLANATION SHOULD BE TYPE BUT THE GRAPHS CAN BE HAND DRAWN; AND
3. STUDENT MUST PUT THEIR NAME ON THE FRONT PAGE OF THE ASSIGNMENT AND SUBMIT USING THE DROPBOX LINK IN VU COLLABORATE.
QUESTION 1 (6 MARKS)
Mike, who just completed VCE, was chatting with Tom and Tim over a cup of coffee. Mike told them that at one point he was thinking of taking either a gap year or working full time instead of going to University. In the end, he decided to go to University. Define opportunity cost, and explain what the opportunity cost was for Mike to go to University. 1.5 Mark
Assume the amount of beer consumed in the pubs of Melbourne and the amount of rice eaten in the restaurants in Melbourne have both been increasing over the last 20 years. Draw a graph(s) showing their relationship and use these two events to highlight the difference between the concepts of co
elation and causation. 2 Marks
Define normative economic statement and positive economic statement and provide an example for each. 1.5 Mark
Why is the question “What to produce” a fundamental economic question of production? 1 Mark
QUESTION 2 (4 MARKS)
Mike, whilst walking along Collins Street, came across a shop selling the “JOYRIDE” technology-based NIKE running shoes, which is considered superior by the world’s best athletics. Although Mike already owns four pairs of NIKE runners, he decided to buy the new runners. Feeling please with himself Mike went to the Pub for a beer. It was “Happy hour” at the Pub, the beers were 30 percent cheaper, and Mike drank three beers rather than his usual two beers. Highlighting the relevant text, graphically illustrate and explain the concept of:
Change in “quantity demanded” 1.5 Mark
Change in “demand” 1.5 Mark
Reflect on an occasion where each of the concepts in question (2a) applied to you. 1 Mark
QUESTION 3 (2 MARKS)
During the early stage of the COVID-19 pandemic, the price of facemask in many countries increased even though the supply of facemask also increased. Use demand and supply analysis to graphically illustrate and explain why the price of facemask increased. 2 Marks
QUESTION 4 (3 MARKS)
Ceteris paribus, an increase in the demand for e-scooters, was accompanied by the government imposing a higher tax on e-scooters due to safety reasons. Use demand and supply analysis to graphically illustrate and explain the impact on price and quantity in the market for e-scooters. (HINT: there is more than one possibility for the potential changes in price and quantity). 3 Marks
QUESTION 5 (4 MARKS)
If you are advised that the estimated price elasticity of demand of your product is 2.2, explain how this information will guide your pricing decisions. 1 Mark
Ceteris paribas, assume that with the a
est of illegal drug dealers, the police have managed to reduce the amount of cocaine available in the market by fifty percent. Use demand and supply graph(s) together with the concept of price elasticity of demand, explain the impact on the price and quantity of drugs and the total revenue of the remaining suppliers if the:
Demand curve for drugs is elastic 1.5 Mark
Demand curve for heroin is inelastic. 1.5 Mark
QUESTION 6 (3 MARKS)
The COVID-19 out
eak has also resulted in a large increase in the price of eggs in several countries. In order to ensure that people can still afford eggs, some governments have legislated a maximum price for eggs. Use demand and supply diagram to illustrate and explain the impact and problems of this policy on the market for eggs. 2 Marks
Explain two (2) ways the government may use to reduce the problems associated with a legislated maximum price. 1 Mark
QUESTION 7 (3 MARKS)
Name two public goods that you have used in your life and explain why they are public goods. 1 Mark
Use the concept of externality to explain why society wants more people vaccinated for communicable diseases. Provide two measures the government may use to encourage vaccinations. 2 Marks