BB106 T1 2021
Assessment Details and Submission Guidelines
Formative Assessment
School
School of Business
Course Name
Bachelor of Business
Unit Code
BB106
Unit Title
Principles of Economics
Trimeste
T1 2021
Assessment Autho
Pu Chen
Assessment Type
Individual
Assessment Title
Principles of Economics Assignment (individual)
Unit Learning Outcomes Addressed:
a. Demonstrate their understanding of fundamental problem of scarcity faced in an economy.
. Apply the microeconomic concepts of demand and supply, price elasticity, market failure, cost and revenue concepts.
c. Explain the importance of economic models and key assumptions in economics.
d. Apply economic models and assumptions to analyse a given situation and/or media articles on economic issues
Weighting
15%
Total Marks
40
Word Limit
Release Date
Week 4
Due Date
Week 5 (see moodle submission link)
Submission Guidelines
· All work must be submitted on Moodle by the due date (as above) along with a completed Assignment Cover Page.
· The assignment must be in MS Word format, 1.5 spacing, 11-pt Cali
i (Body) font and 2 cm margins on all four sides of your page with appropriate section headings.
· Reference sources must be cited in the text of the Assessment Task, and listed appropriately at the end in a Reference List using APA 6th edition for the School of Business. https:
li
ary.mit.edu.au
eferencing/APA
Extension / Special Consideration
If an extension of time to submit work is required, an Application for Special Consideration and supporting documentation must be submitted online via your Academic Management System (AMS) login: https:
online.mit.edu.au/ams.
The Application for Special consideration must be submitted no later than three (3) working days after the due date of the specific piece of assessment or the examination for which you are seeking Special Consideration. In the case of serious illness, loss or bereavement, hardship or trauma students may be granted special consideration.
Academic Misconduct
Academic Misconduct is a serious offence. Depending on the seriousness of the case, penalties can vary from a written warning or zero marks to exclusion from the course or rescinding the degree. Students should make themselves familiar with the full policy and procedure available at: https:
www.mit.edu.au/about-mit/institute-publications/policies-procedures-and-guidelines/AcademicIntegrityPolicyAndProcedure. For further information, please refer to the Academic Integrity Section in your Unit Description.
Assessment Task Description
Students are required to provide short answers and calculations to the following 4 questions.
Question 1 (10 marks)
New Zealand exports possum skins that are used to make leather products. What determinants of demand would be influenced by the following events?
(a) New Zealand’s possum skin industry is recognised as having conservation benefits as possums are a feral pest in New Zealand. (3 marks)
(b) incomes in China grow rapidly (3 marks)
(c) the price of calf leather becomes more expensive (4 marks)
Question 2 (10 marks)
Using demand and supply analysis to explain the phenomenon of panic purchase of sanitary items during the beginning of the pandemic in Australia.
(a) Describe your observation of the phenomenon of panic purchase describe how the prices of the relevant items changed over time. (max. 200 words) (3 marks)
(b) Use a demand and supply model to illustrate the increase of the price of the sanitary items during the beginning of the panic purchase and explain the causes of the increase in the price. (3 marks)
(c) Use the demand and supply model to illustrate the return of the price to the normal level when the pandemic was under control and explain the causes leading the return of the price to the normal level. (4 marks)
Question 3
Assuming one of the retailers has the following cost schedule for a particular product:
Output (tones)
Fixed Cost
Variable Cost
Total Cost
Average Fixed Cost-AFC
Average Variable Cost-AVC
Average Total Cost
Marginal Cost-
-ATC
MC
0
30
1
32
2
35
3
39
4
44
5
50
6
57
7
65
8
74
9
84
10
95
11
107
12
120
13
134
14
149
a) Complete the table above. (5 marks)
(Hint: use excel table to do the calculation.)
) Before the pandemic the market price was 10, what is his optimal output quantity? How much profit the producer was able to make in this case? (3 marks)
c) Due to the panic buying the market price increased to 12, how much profit he was able to make at this price? (2 marks)
Question XXXXXXXXXXmarks)
Consider the following negative production externality as depicted:
(a) Identify the social optimum and (5 marks)
(b) Explain what methods the government could use to achieve this outcome. (5 marks)
Question 5 (This question is no obligate. However, the earned marks will be added to your total marks if the latter is below 40.) (total 10 marks, each question 1 mark)
Consider the following graph of a monopoly.
Use the graph to identify the following:
(a) the marginal-revenue curve,
(b) the average-revenue curve
(c) the average-total-cost curve
(d) the marginal-cost curve
(e) the price a profit-maximising monopolist would charge.
(f) the output it would produce.
(g) total revenue
(h) total cost
(i) total profit at the profit-maximising point.
(j) What is the value of the unit-profit?
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Lasted Updated: T1, 2021