Reference no: EM133701157

Economic Environment of Business

TASK
Assignment consists of two essay questions based on the subject material and require some additional research. Sources used in your answer should be fully referenced in Harvard style. You are required to choose only ONE essay. You can choose any essay question. You have to answer only ONE essay.

You are advised to access media items for further elaboration and illustration of the issues raised in your essays. It is expected that you use at least 5 references.

Complete ANY of the following essays ensuring that you apply economic principles or theory wherever possible to support your discussion. Communicate your ideas with correct grammar, spelling and writing style and support your answers with diagrams and illustrative examples as necessary.

Essay 1
Choose a product or service that is sold in a market. Write a paper analysing the market equilibrium for that product or service using the concepts and theories learned in this course. Your paper should address the following questions:

Describe the market for the product or service you have chosen. What are the key factors that affect supply and demand for this product or service?

Essay 2
Explain how changes in these factors can affect the equilibrium price and quantity of the product or service. Use graphs to illustrate your analysis.
Analyse the impact of government policies, such as taxes or subsidies, on the market equilibrium for this product or service.
Discuss the potential effects of technological innovations or changes in consumer preferences on the market equilibrium.
Based on your analysis, what do you predict will happen to the market for this product or service in the next 5-10 years? What factors might contribute to this outcome?
Choose a country and analyse its macroeconomic performance over the past decade. Write a paper using the concepts and theories learned in this course to analyse the country's GDP growth, inflation, unemployment, and fiscal policy. Your paper should address the following questions:

Describe the country's economic performance over the past decade in terms of GDP growth, inflation, and unemployment. Use appropriate charts and data to support your analysis.
Explain the factors that have contributed to the country's economic performance. How have international factors, such as trade or exchange rates, affected the country's macroeconomic performance?
Analyse the country's fiscal policy over the past decade. How has the government's

spending and taxation policies affected the country's macroeconomic indicators?
Based on your analysis, what challenges or opportunities do you see for the country's macroeconomic performance in the future? What policy recommendations would you make to improve the country's macroeconomic performance?

This assessment task will assess the following learning outcome/s:
be able to apply demand and supply analysis to make a range of market related decisions.
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.
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.

This assignment provides an opportunity for you
to demonstrate that you are familiar with the use of the model of supply and demand, the concepts of costs and benefits, the importance of market structure and the role of government intervention.
to present a detailed analysis of some of the factors that give rise to government intervention in the market through the application of your knowledge of theory supported by evidence drawn from sources of your choosing.