Reference no: EM132622438
ECON1020 Introductory Macroeconomics - RMIT University
Prices and Markets
Assessment Task 1
Sample Quiz
1. Based on the table below, using the midpoint formula, what is the income elasticity of demand for good X?
|
Income
|
Q of X Purchased
|
|
$30,000
|
2
|
|
$40,000
|
6
|
-3.5
-0.29
0.29
3.5
2. Which of the following statements is not correct, based on the figure below?
When the price is $10, quantity supplied equals quantity demanded. When the price is $6, there is a surplus of 8 units
When the price is $12, there is a surplus of 4 units.
When the price is $16, quantity supplied exceeds quantity demanded by 12 units.
3. Which of the following phrases best captures the notion of efficiency?
Minimum Waste Absolute Fairness Equal Distribution Equitable Outcome
4. Suppose Jim and Tom can both produce baseball bats. If Jim's opportunity cost of producing baseball bats is lower than Tom's opportunity cost of producing baseball bats, then
Tom must have an absolute advantage in the production of baseball bats. Jim must have an absolute advantage in the production of baseball bats. Tom has a comparative advantage in the production of baseball bats.
Jim has a comparative advantage in the production of baseball bats.
5. The cross-price elasticity of demand between Kit Kat and Mars is negative. Based on this information alone, we can conclude the two products are substitutes
True False
6. Economics is primarily the study of
the state, nation, government, and politics and policies of governments the problems related to the existence and evolution of society
how agents choose to allocate scarce resources and how these choices affect society the mental functions and behaviour of individuals and groups
7. Which of the following statements correctly highlights the difference between microeconomics and macroeconomics?
Microeconomics deals with a small part of the economy, whereas macroeconomics deals with aggregate economic performance.
Microeconomics describes what economic agents actually do, whereas macroeconomics describes what economic agents ought to do.
Microeconomics primarily deals with positive analysis, whereas macroeconomics primarily deals with normative analysis.
Microeconomics is descriptive, whereas macroeconomics is advisory.
8. Which of the following best describes equilibrium?
A stable situation where no economic agent would benefit by changing his or her behaviour A situation where economic agents do not optimise as they do not have perfect information A situation where only one individual or firm makes an optimal decision
A situation where the government intervenes to allocate resources
9. Empiricism is analysis that uses to test theories.
illustrations philosophy data
value judgments
10. Which of the following is an example of a positive economic statement?
An increase in income causes an increase in savings. Eliminating poverty is more important than reducing inflation. Economics is the most useful social science.
The government should ideally work as a welfare state.
Assessment Task 2
Using the models and theories of either (1) the market or (2) market failure, perform a microeconomic analysis of one appropriate economic issue or phenomenon of your choice. Clearly explain your chosen question, method and conclusions.
Assessment Task 3
Using the models and theories of either (1) market structure, conduct and performance, (2) game theory or (3) the boundary of the firm, perform a microeconomic analysis of one appropriate economic issue or phenomenon of your choice. Clearly explain your chosen question, method and conclusions. Comment on the link between market structure and performance for your chosen issue.
In both assessments, your task is to conduct economic analysis of an issue that you select yourself, just as businesspeople and policymakers do. You will be assessed on what you learnt in the course by correctly choosing and applying definitions, methods and theories from lectures and tutorials. As this is a microeconomics assignment you should not write a general or journalistic report or use concepts from other courses not discussed in this course.
• Look at the business and economics news for ideas for an appropriate issue. It needs to fit the purpose of microeconomics (lecture 1) - a topical, important example of resource allocation with questions you can answer by applying microeconomic methods. State the question, why it's interesting and economically significant. Present facts or data to illustrate.
• Select the right method (i.e. microeconomic model, theory or tool from this course) to answer your question. Explain your method. Assume your reader needs to be explained every concept needed to follow your analysis.
• Apply the method to your issue. Report the steps of your analysis and your findings. Typical analysis discusses the economic agents, how they exchange, the equilibrium and factors that change it and finally welfare implications. Use diagrams or models as they answer the question better than only words.
• Your conclusion will directly answer the question and maybe look at the big picture - the significance and limitations of your work.
Attachment:- Assessment Guidelines.rar