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Assessment 1 Question – MBA _ECON6000 Context:
Assessment 1 assesses students’ understanding of the application of some of the knowledge garnered from the microeconomics part of the syllabus to analyse real life situations.
You are expected to prepare a 2500 word research report. The report focuses on a comparative analysis of the First Home Owners Grant (FHOG) and the First Home Plus (FHP) facilities that have been instituted by the Federal government of Australia to assist people to get their first residential property.
You are expected to critically evaluate the following statements and address the issues highlighted in the questions below.
(a) Compare and contrast the FHOG and the FHP highlighting eligibility requirements, similarities and differences, and express you own opinion of which one is a better policy to follow. (20 marks)
(b) Discuss in detail how the First Home Owners grant has impacted the demand and supply patterns in Australia’s 6 states and the Northern Territory. In your comparative discussion explain how the FHOG could have influenced the price elasticity of demand in the housing market. Use appropriate diagrams to support your answer. (15 marks)
(c) Explain the market structure under which the discussion of the FHOG falls. (10 marks)
(d) Critically discuss the following statement by Ken Henry in the Age of Monday 17 February 2020: “Stamp duties levied by state governments on property purchases create an unfair hurdle for young aspiring homeowners.” (5 marks)

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