Reference no: EM132361661

Economics for Business Assignment -

Learning outcomes - Upon successful completion of this subject, students should:

• be able to apply demand and supply analysis to make a range of market related decisions;
• 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;
• be able to explain and defend why it is important to understand the structure of the market in which a firm operates;
• be able to critically examine and demonstrate why it might be necessary for government to intervene in the production of goods and services and in the distribution of income; and
• be able to examine critically the health of the economy as a whole through the analysis of major economic variables and advise on likely policy alternatives.

Assessment item 1 - Problem Questions

Task - Consists of two questions. Sources used in your answer should be fully referenced in APA 6th style.

Communicate your ideas with correct grammar, spelling and writing style and support your answers with diagrams as necessary.

Question 1 - Use the economics or other literature (but not the textbook) to identify estimates of the price elasticity of demand for at least three different products or services. The estimates must be from three different articles with a publication date of 2017, 2018 or 2019. Provide complete references for the sources that you have used. Comment on the magnitudes of these estimates in relation to the standard economic determinants of the price elasticity of demand.

Question 2 - Identify from media, industry, research or government reports on Australian industry, an example of an organisation that has significant monopoly power. Why does this organisation has monopoly power? Describe how and whether the organisation benefits from this monopoly power. For your example, explain how, why and which consumers lose if monopoly power is exercised. Explain how government intervention is used, or may be used, to curb this power if it exercised.

Assessment item 2 - Problem Questions

Task - Consists of two problem questions. Sources used in your answer should be fully referenced in APA 6th style.

Answer the following question ensuring that you apply economic principles or theory related to understanding the health of the economy and the need for government intervention to inform your analysis and support your decisions. Communicate your ideas with correct grammar, spelling and writing style and support your answer with diagrams and examples as necessary.

Question 1 - Using data from the Australian Bureau of Statistics (ABS) collect information on the four expenditure components of Gross Domestic Product: consumption, investment, government and net exports. Develop measures for these four components using annual data for the period 1987/8 to 2017/18 inclusive, in real per capita terms. Plot these values over time. Be explicit and define the data employed and provide sources for the data obtained, cite the ABS catalogue and table numbers. Provide economic explanations of any observed time patterns in these series.

Question 2 - Using appropriate diagrams, explain the likely impact of a period of low real wage growth on macroeconomic equilibrium in Australia. Use evidence drawn from media and other reports to illustrate you answer. How might government policy respond to mitigate any undesirable consequences of prolonged periods of low real wage growth?

Attachment:- Economics for Business Assignment File.rar