Economics topic
Assignment 2
Value: 40%
Due date: 01-Sep-2014
Return date: 22-Sep-2014
Length: about 1500-2000 words each
Submission method options
Alternative submission method
Task
Analytical essays.
ESSAY TOPIC 1:
Consider the following issues in the context of materials presented in chapters 3 and 4 (i.e. Demand and supply, and Elasticity).
In the recent Australian budget the coalition Government has announced deregulation of the higher education sector with a view to make the sector globally competitive. The deregulation will result in the allocation of Commonwealth supported undergraduate places not only to the university sector but also to TAFEs and private providers from 2016. The deregulation will also allow the Australian universities and other providers of higher education to set their own fees. In the context on this development you are asked to answer following questions.
Discuss the impact of deregulation on:
(a) Demand for undergraduate courses offered by the Australian universities. Use demand curve to show the impact. Also, discuss if the impact will be the same in all universities regardless of their location (such as regional vs urban).
(b) Based on your answer in part (a) discuss what will happen, in the short-term, if the aggregate supply of undergraduate places (offered by the university sector) does not change.
ESSAY TOPIC 2:
Q2. Consider this question in the light of materials presented in chapters 12 and 13 (i.e., Consumer choices and constraints, and Producers' choices and constraints).
You are a senior business analyst at the Australian Automotive Industry and have been asked to investigate the viability of the following statement in the context of the decision to cease the production of passenger motor vehicles in Australia.
“Increased availability of a large number of imported passenger motor vehicles, small size of Australian market and the high cost structure of the economy are the root causes for the collapse of the Australian automotive industry”.
Your task is to write a policy oriented report using the concepts of consumer choices and constraints, and producers’ choices and constraints.
You may find the following case studies entitled ‘Produce More to cut cost (page 297 of the textbook, chapter 13) of some help.
Rationale
In your working life you will be required to present arguments and explain your decisions. Economics gives you tools to do this. However, many of those with whom you work will have little, if any, understanding of the principles of economics and their application. To communicate with these people you will have to put your arguments succinctly into language that they understand. This does not mean that your argument is any less rigorous or sophisticated. Rather, it means that you are being asked to communicate important concepts and decisions in a manner that most people can understand.
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Rationale
In your working life you will be required to present arguments and explain your decisions. Economics gives you tools to do this. However, many of those with whom you work will have little, if any, understanding of the principles of economics and their application. To communicate with these people you will have to put your arguments succinctly into language that they understand. This does not mean that your argument is any less rigorous or sophisticated. Rather, it means that you are being asked to communicate important concepts and decisions in a manner that most people can understand. We see this as the most important result of your study of this subject and therefore a passing mark (50% to 64% depending on the quality of your answer) on any question will require that you are able to successfully explain to the lay person (one who has not studied economics) the issues associated with any question. Thus in the first part of an answer to any assessment question in this subject you will be required to summarize, in a non-technical manner, the essence of a correct answer.
Of course, you will need to know and understand the relevant theory and associated diagram(s)/model(s) on which you are basing your answer. Thus in the second part of your answer to any question you will be required to correctly outline the basic theory – including the construction and explanation of the diagram(s)/model(s) associated with it. This ability to theorize will indicate your ability to place the issues raised in the question into an appropriate theoretical/abstract context from which to further examine the economic issues and to draw appropriate conclusions. If you successfully complete both the first and second part of an answer you will be awarded a credit mark (65% to 74% depending on the quality of your answer). The third part of your answer requires you to correctly utilize the diagram(s)/model(s) to illustrate the changes to the diagram(s)/model(s) that the circumstances discussed in the question imply. This will illustrate your ability to manipulate the tools of economics. Students who successfully complete this part of the question (in addition to the first two parts) will be awarded a distinction mark (75% to 85% depending on the quality of your answer). Finally, in the fourth part of your answer, you must correctly analyze, using the diagram(s)/model(s), the impact of the change on variables and issues of concern, determine if a response is required (by business or government), what that response should be and predict the impact of that response in both the short-run and the long run.
Marking criteria
Part 1
Summarize (Pass: 50% to 64% of marks for the question, depending upon quality of answer) Provide in 'everyday language' and without reference to diagrams a summary of a correct answer to the question asked. This summary should include a succinct description of the point from where the analysis commences, the initial impact of the change in economic circumstances discussed in the question, identification of the problem(s)/issue(s) these changes create, the likely business/policy measure(s) taken in reaction to these changes, the short run and long run results of the measure(s) employed and a brief evaluation of the measures taken.
Part 2
Theorize (Credit: 65% to 74% of marks for the question, depending upon quality of answer)
Complete Part 1 and be able to recognise the correct economic theory and the associated diagram(s)/model(s) for the analysis. Be able to explain the basics of the theory and of the construction of the diagram(s)/model(s) and identify the appropriate equilibrium starting point in the context of the diagram(s)/model(s).
Part 3
Utilize (Distinction: 75% to 84% of marks for the question, depending upon quality of answer)
Complete Part 2 and utilize the diagram(s)/model(s) to correctly identify the initial change in the diagram(s)/model(s) that results from the change in economic circumstances discussed in the question.
Part 4
Analyze (High Distinction: 85% to 100% of marks for the question, depending on quality of answer)
Complete part 3 and using the diagram(s)/model(s) correctly identify the economic problem(s)/benefit(s)/issue(s) created by the change in economic circumstances and analyze if business/government should respond, what the response should be and, if a response is made, analyze the effectiveness of the response by reference to the diagram(s)/model(s) in the short- run and long-run.
Presentation
Answers should be typed and diagrams must be clear and neat and preferably drawn electronically. Hand-drawn diagrams are acceptable. The answer to the question should be divided into four parts (as indicated in the marking criteria above: Part 1: Summarize; Part 2: Theorize; Part 3: Utilize and Part 4: Analyze) and each part should be carefully labeled.
All assignments are submitted through EASTS.