Unit Name: Economics for Business
Unit Learning Outcomes Assessed.:
1. Acquire a broad understanding of the principles of macro and microeconomics in an economy.
2. Analyse economic environment nationally and internationally and its influence on business and national economic performance.
3. Critically analyse government’s fiscal and monetary policy and how they influence the economy and business in general.
4. Synthesise theoretical and practical knowledge of economics, a well-developed understanding of the language of economics and the tools of economics used by policy makers within or outside the country.
Description: Each week students were provided with three tutorial questions of varying degrees of difficulty. The 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 the following tutorial questions and submit these answers in a single document.
The questions to be answered are;
Question 1: Week 2 Question 1, (7 marks)
Debra can make either 12 cakes or 16 cookies in 4 hours. Sam can make either 6 cakes or 12 cookies in 4 hours.
a. Who has an absolute advantage at producing cakes and who has an absolute advantage at producing cookies? Briefly explain your answers. (2 marks)
b. State Debra’s and Sam’s opportunity costs of producing one cake and one cookie.
Draw and place your answer in a table which looks something like this: (3 marks)
c. If both Debra and Sam concentrate on producing only the product in which they have a comparative advantage, how many cakes and how many cookies will they produce?
Question 2: Week 3 Question 2, (11 marks)
a. Draw a figure depicting market equilibrium in the ice-cream market. Label the figure properly. Briefly explain the figure. (3.5 marks) b. Draw a new figure depicting the following situation: The weather is suddenly unseasonably hot and at the same time the wage of ice-cream salespeople increases. Explain your figure, and report on your new equilibrium price and quantity.
Question 3: Week 5 Question 3, (7 marks)
a. ABC Company produces 100 pendants per day. The total fixed cost for the plant is $5000 and the total variable cost is $15000 per day. Calculate the average fixed cost, average variable cost, average total cost and total cost at the current output level. (4 marks)
b. Calculate Economic profit and Accounting profit from the figures given below for ABC
Company. (3 marks)
• Total revenue $ 500,000
• Wages and salaries $ 40,0000
• Forgone salary $ 80,000
• Interest paid $ 10,000
• Forgone rent $ 10,000
• Raw materials $ 50,000
• Other payments $ 20,000
• Forgone interest $ 7,000
Question 4: Week 8 Question 1, (7 marks)
Discuss which of the following fall into the categories of consumption, investment, government expenditure and net exports from the Y = C + I + G + NX (X – M) identity, and whether the impact is to increase or decrease GDP.
(a) Charles buys a second-hand textbook from Tim. (1 mark)
(b) When Charles bought the book, he paid Sarah $10 to collect it from Tim. (1.5 marks)
(c) Thomas buys a new house (1 mark) (d) Your firm sells meat to Indonesia (1 mark)
(e) The fish and chips shop down the road buys fish to make meals for diners.
(f) The same shop buys a deep fryer to fry fish for meals. (1.5 marks)
Question 5: Week 10 Question 1, (7 marks)
The ABS reported that in September 2007, a cycle peak, the working-age population was 16,808,200, the labour force was 10,979,300, and employment was 10,514,600. Calculate for that quarter the labour force participation rate and the unemployment rate.
(3.5 + 3.5 = 7 marks)
Question 6: Week 11 Question 1, (11 marks)
Suppose, initially the Australian economy is at full employment (in other words the economy is at the potential GDP). Using AD-AS model, explain how would each of the following events affect the economy both in the immediate and in the long term.
a) A slowdown in China’s economic growth due to the sub-prime crisis in the US.
b) Union wage settlements push the wage rate up. (4 marks)
c) An increase in consumer confidence. (3.5 marks)
The assignment will be submitted via Blackboard. Each student will be permitted only ONE submission to Blackboard. You need to ensure that the document submitted is the correct one.
Holmes Institute is committed to ensuring and upholding Academic Integrity, as Academic Integrity is integral to maintaining academic quality and the reputation of Holmes’ graduates. Accordingly, all assessment tasks need to comply with academic integrity guidelines. Table 1 identifies the six categories of Academic Integrity breaches. If you have any questions about Academic Integrity issues related to your assessment tasks, please consult your lecturer or tutor for relevant referencing guidelines and support resources. Many of these resources can also be found through the Study Skills link on Blackboard.
Academic Integrity breaches are a serious offence punishable by penalties that may range from deduction of marks, failure of the assessment task or unit involved, suspension of course enrolment, or cancellation of course enrolment.
Table 1: Six categories of Academic Integrity breaches
Plagiarism Reproducing the work of someone else without attribution. When a student submits their own work on multiple occasions this is known as self-plagiarism.
Collusion Working with one or more other individuals to complete an assignment, in a way that is not authorised.
Copying Reproducing and submitting the work of another student, with or without their knowledge. If a student fails to take reasonable precautions to prevent their own original work from being copied, this may also be considered an offence.
Impersonation Falsely presenting oneself, or engaging someone else to present as oneself, in an in-person examination.
Contract cheating Contracting a third party to complete an assessment task, generally in exchange for money or other manner of payment.
Data fabrication and falsification Manipulating or inventing data with the intent of supporting false conclusions, including manipulating images.
Source: INQAAHE, 2020
If any words or ideas used the assignment submission do not represent your original words or ideas, you must cite all relevant sources and make clear the extent to which such sources were used.
In addition, written assignments that are similar or identical to those of another student 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 suspension of enrolment. The penalty would be dependent on the extent of academic misconduct and your history of academic misconduct issues.
All assessments will be automatically submitted to SelfAssign to assess their originality.
For further information and additional learning resources please refer to your Discussion Board for the unit.