ECOM4000 Economics Individual Assignment T3 2021
Kaplan Business School (KBS), Australia 1
Document Classification: Public
ECOM4000 T3 2021 Individual Assignment (20%)
This assignment is worth 20% of your final mark. The assignment has two sections. Section A (worth 20
marks) is on microeconomics and Section B (also worth 20 marks) is on macroeconomics. This assignment
must be completed individually and submitted using Turnitin on the portal before the due date.
When doing this assignment, you might like to consider the following points.
• Answer each question directly and fully, using the minimum number of words. You do not need to
write an essay. The total word limit is 1500 words for the entire assignment.
• Where necessary, make sure you explain your diagrams. You can insert diagrams by drawing them in
programs like “paint” and pasting them into the document, or by drawing them by hand, scanning
them and then pasting them as a picture into the document. Do not copy pictures or graphs from the
internet - you must draw them yourself (it’s ok if they are a bit messy...).
• Reference your answers if you are using information from another source using in text referencing and
include a reference list at the end of the assignment. You do not need to reference subject material
given to you in ECOM4000.
• Because the assignment is to be submitted using Turnitin, any plagiarism will be identified. It is
possible that you could get zero for your assignment if you copy someone else’s work.
• Consult the Academic Success Centre resources on the portal and on campus for assistance with
eferencing and plagiarism.
ECOM4000 Economics Individual Assignment T3 2021
Kaplan Business School (KBS), Australia 2
Document Classification: Public
Section A: Microeconomics (20 marks)
Question 1
Identify the market structure Coles and Woolworths operate in. Make sure you justify your choice of
market structure using all of the market characteristics used to classify markets. Using your own
independent research, provide some facts and
ief comments on this market (for example you may like
to discuss metrics like the concentration ratio). (6 marks)
Question 2
Because of their market positions, Coles and Woolworths exhibit a great deal of interdependence and
actively advertise against each other. In particular, Coles has been successful with their “Down Down”
campaign. Briefly explain what this campaign is, and explain the effect you think it has had on the market
position and profitability of both Coles and Woolworths. Draw appropriate diagrams for this market
showing the market outcomes for Coles and Woolworths. (6 marks)
Question 3
Consider a “game” between Coles and Woolworths that the supermarkets may participate in. The rules
of the game are:
• If both Coles and Woolworths keep prices low, then they will both make a profit of $5,000m.
• If both Coles and Woolworths keep prices high, then they will both make a profit of $8,000m.
• If one supermarket keeps prices low and the other keeps prices high, then the low price
supermarket will make $9,000m profit and the high price supermarket will make $4,500m profit.
Using these rules, solve this game for the Nash equili
ium (make sure to include your diagram and the
logic you followed to solve the game). Is your outcome the best one for both Coles and Woolworths?
Explain your answer. (8 marks)
ECOM4000 Economics Individual Assignment T3 2021
Kaplan Business School (KBS), Australia 3
Document Classification: Public
Section B: Macroeconomics (20 marks)
Question 1
Using your own independent research, summarise the effect the coronavirus has had on the Australian
macroeconomy. At a minimum, your answer should include commentary about the effect on Australian
GDP, unemployment, inflation and other aspects of the Australian macroeconomy. Support your
comments with appropriate economic data. (Make sure you use reputable economic sources and
eference your sources.) (6 marks)
Question 2
Draw a diagram of the Australian macroeconomy using the aggregate demand and aggregate supply
(AD/AS) model before, and then after the virus. Clearly show on your diagram(s) the before and after
effects for the macroeconomic variables discussed in Question XXXXXXXXXXmarks)
Question 3
The Federal Australian Government was very aware of the effects of the virus on the Australian economy.
Using your own independent research, explain the fiscal policy actions the Government undertook to
combat the economic impact of the virus. (Make sure you use reputable economic sources and reference
your sources.) Using your diagram from Question 2, show how the government action affected the
Australian macroeconomy. Comment on how successful the government action has been, and identify
any weaknesses associated with it. (7 marks)