Reference no: EM132792054

Assessment item 1:

1. Suppose a good weather in Cambodia increases 30% of the mango production. How will this affect the equilibrium price of Cambodia mangoes? Defend your answer with a graph.

2. A politician argues that "Bumper harvest can benefit the farmers". Do you agree with this statement? Why or why not?

3. Explain carefully the statement: "increasing production cost has significantly reduced the supply of garment. However, instead of rising price, the market price continues to come down." 10 marks

Assessment item 2:

1. Why would a firm making losses continue to operate.

2. Explain demand-pulled inflation and cost-pushed inflation. Briefly discuss their differences.

3. What is price discrimination? Why do monopolists like to use price discrimination?

Assessment item 3:

Part A

Short answer questions

1. Explain why recent research has found that an important reason why many developing countries experience very low rates of growth is their financial systems are underdeveloped (a condition known as "financial repression").

2. Some economists argue that foreign aid can reduce both the likelihood and the severity of hyperinflations. Explain this argument.

Part B

Essay Between 1,500 to 2,000 words

Cambodia's dependence on US currency has taken its toll recently. Rising US dollars have made Cambodian products relatively expensive in the world market. Another problem is the improvement of US and Vietnam relationship, to contain China. With these issues, you are invited to advise the government authorities pertaining to minimum wage. "Minimum wage will affect unskilled workers in Cambodia". What might it be?