Reference no: EM132806795

HC1072 Economics and International Trade - Holmes Institute

Learning Outcome 1: Develop a broad understanding of the principles of macro and microeconomics in an economy.

Learning Outcome 2: Analyse the economic environment nationally and internationally and their influence on business and national economic performance

Learning Outcome 3: Critically analyse government's fiscal and monetary policy and their influence on the economy and business in general

Learning Outcome 4: Explain how economies benefit from international trade.

Learning Outcome 5: Synthesize theoretical and practical knowledge of economics for application in work- life situations.

Question 1

a) Discuss the importance of positive economic theory and normative economic theory. Do we need both types of economic theory? Explain your answer by providing a concrete example.
b) In what ways are microeconomics and macroeconomics similar?
c) In what ways do microeconomics and macroeconomics differ?

Question 2

Price ceilings and price floors are ways to control volatile market prices. Discuss the workings of each. Who can implement these price controls?

Question 3

"As a business owner, I pay close attention to explicit costs as they affect my profit. But to continue the business in the long term, I have to factor in implicit costs." Discuss this statement from an economic point of view. (5 marks) Do you agree or disagree with this statement? Explain your answer.

Question 4

Evaluate the advantages (3.5 marks) and disadvantages (3.5 marks) for a business owner operating within an oligopoly.

Question 5

a) Compare and contrast frictional unemployment versus structural unemployment.

b) Cite and explain one action taken by government to reduce unemployment.

Question 6

a) Discuss the advantages and disadvantages of fiscal policy.

b) Suppose you are given the following information about the Fiji economy, with the values in billions of Dollars. What is the GDP of Fiji using the Expenditure Model?

Private investment                                   $400

Government spending                              $525

Imports                                                     $245

GST Collected                                         $168

Personal consumption                              $276

Rent Income                                            $689

Property Taxes Collected                         $243

Exports                                                     $87

Attachment:- Economics and International Trade.rar