Assessment item 1
Due date: 20-Mar-2015
Return date: 10-Apr-2015
Length: Approx. 1000 words
Submission method options
Alternative submission method
Question (10 marks)
Assignment 1 consists of one problem question based on Text material. Text material which may be relevant to this question may be drawn primarily from any of Text chapters 1 or 2. The question addresses the following learning outcomes:
• be able to identify and critically evaluate opportunities for specialisation and exchange
• be able to make decisions that incorporate the relevant benefits and cost analysis
Answer the following:
Some commentators on the Chinese economy have argued that the opportunities for investment-based growth have run their course and that major problems of underutilized capital equipment and unemployment of workers are inevitable, especially when the global economy slows down, unless the Chinese government switches from a strategy of investment-led growth to domestic market based growth on consumption expenditure. Do you agree with the above statement? Explain the costs and benefits of adopting such a strategy for a country like China. Hint: analyze this question in the context of the production possibilities frontier (PPF) of Text chapter 2.
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.
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.
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).
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.
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.
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.
The Assessment needs to be submitted via Turnitin