讲解 ECON1020 Economics and Business Strategy, Session 1, 2024辅导 留学生Matlab程序

ECON1020 Economics and Business Strategy, Session 1, 2024

INTEGRITY MATTERS

Integrity matters – at home, in your workplace and here at University. As a highly valued member of the Macquarie University Community, you carry great responsibility to uphold the good name of our institution. Our reputation is your reputation and will stay with you for life when your degree opens amazing opportunities for you.

If you are ever unsure whether your actions fall within the guidelines of Academic Integrity, please don’t hesitate to reach out. Contact the Academic Literacies Unit or your Tutor/Unit Convenor.

ASSESSMENT DESCRIPTION

The assignment is an opportunity to review the material we have studied, both in its detail and application to understanding Economic Frameworks. Individual assignment aims to engage students in economic analysis within a business decision-making context. It fosters a deeper understanding of economic concepts and decision-making processes. The assignment will be in the form. of writen short and long answer questions. The assignment is marked out of 100 and is worth 20 per cent of your overall assessment. The questions as well as the marking rubric for this assessment are atached.

This is an individual assessment, so you should not share your thinking or draft text with other students. Note that Turnitin detects similar text in any assignment that has been handed in at any university globally and any text from internet sources. Hence, make sure you write in your own words. Plagiarism is a serious breach of academic integrity (as outlined above).

Skills in focus for this assessment

The assignment is designed to develop your understanding of the strengths and limitations of the main economics models in explaining existing outcomes and developments. It aims to engage students in economic analysis within a business decision-making context. It builds your learning goals associated with Analysis (especially critical thinking), Problem Solving, Technical Skills, Communication and Discipline Knowledge.

ASSESSMENT INSTRUCTIONS

IMPORTANT INFORMATION: READ BEFORE YOU START

SUBMISSION

• The assignment must be submitted via Turnitin by 11:55 pm Monday, April 29, 2024. The submission link is available under the ‘Assessments’ folder on iLearn.

• Re-submissions are allowed until the deadline. After the deadline, no re-submissions are allowed under any circumstances.

• Note that Turnitin will compare your submission against others’ as well as internet sources including so-called ‘homework help’ websites. The originality report will be made available to you after the deadline.

DOCUMENT PREPARATION

• Prepare your answers in one document using word processing software (e.g., Microsoft Word). Hand-written answers (except for the diagrams and associated labels) will not be marked.

o All Macquarie University students have been automatically granted a full Microsoft 365 license. Click here for more information on how to download Microsoft 365.

• Do not add a cover page to your assignment or repeat the text of the questions in your submissions. Simply answer questions in order, denoting Q1, Q2, Q3… etc.

• Written answers should not exceed the maximum word limit stated in each question (if applicable). Any words written exceeding the limit will not be assessed.

o Note that this is a maximum word limit, you may answer the question in fewer words if desired. Correct concise answers using a word count less than the maximum can still achieve full marks.

• Some questions require diagram illustration. Diagrams can be electronically drawn or hand-drawn and must be inserted into your answer document.

o Applications for electronically drawn economic models include Microsoft Word and Google Drawings.

o One way to insert a hand-drawn diagram is to take a photo of the diagram hand-drawn on paper, send it to your computer via email, copy it into your document, and then crop as required.

• Save your answer document in .docx or .pdf format.

o For Mac users: Do not submit a .pages file. Turnitin cannot read it, hence it cannot be assessed.

• After you submit you should double-check on Turnitin whether the document was properly uploaded and that all your diagrams are visible and formatted correctly. If you see any issues, you should resubmit before the deadline.

REFERENCING

• There is no need to cite the textbook. This is because the majority of your answers will need to draw upon concepts and frameworks from the textbook, which is the primary point of the assignment.

• There is also no need to cite the articles linked in the assignment. Again, your answers will need to draw upon these resources.

• Note that the information from the textbook, lecture notes, workshop questions and articles linked in the assignment should be enough to address all questions. Therefore, you are not expected to incorporate any additional sources in your answers.

o If you do use other sources, you should use in-text citations and include the full references at the end of each question. For those who are not familiar with referencing, start here.

USE OF RESOURCES AND TECHNOLOGIES INCLUDING GENERATIVE ARTIFICIAL INTELLIGENCE

Students are not permitted to use GAITs to generate writing used in their final submission or produce counter-arguments on their final submission. Any of these actions will constitute and be treated as a breach of academic integrity. Recall “what is okay” and “what is not okay” from the Academic Integrity Module. Unacceptable academic activities include but are not limited to, contract cheating, collusion, plagiarism, and self-plagiarism. Details about academic integrity can be found here: MQ academic honesty policy.

Students are permitted to use GAITs to:

• clarify concepts, theories, ideas, etc., discussed in class.

• edit a working draft of the assessment.

• read and summarise research and supporting evidence for the assessment (if applicable).

LATE SUBMISSION

A maximum penalty of five percentage points of the total possible marks will be applied per day to late submissions, for up to a maximum of seven calendar days. Tasks that have not been submitted within the maximum number of additional late days will receive a mark of zero, unless otherwise specified in the late penalties section of the Unit Guide. Late submission for a task will only be permitted when specified in the unit guide. This provision does not apply to online exams or other assessment with a time-limit of less than 24 hours. Where an application for Special Consideration is approved and the outcome is an extension to the due date of a task, submissions that are received after the new due date will be subject to late penalties that are calculated from the new due date. This only applies where the outcome is an extension to the due date – see the Special Consideration Policy for a schedule of all possible outcomes.

ECON1020 ECONOMICS AND BUSINESS STRATEGY

INDIVIDUAL ASSIGNMENT

Total Marks 100  | Weighting 20%

DUE: 29/04/2024, 11:55pm

Question 1  | [15 marks]

Download the spreadsheet data that was used to create Figure 1.2 in The Economy textbook (The    Economy, The CORE textbook, Unit 1, the link is available under Week 1). You can download the spreadsheet data by clicking on the xlsx link here:

https://jackblun.github.io/Globalinc/

Consider the following three countries: Gabon, Spain and Norway.

a.   For each one calculate the rich to poor ratio in 1980, 1990 and 2014 (6 marks). Note: For Gabon use 1982 which is the earliest year available.

b.   Describe the differences in the rich to poor ratio between countries revealed by your calculations. (2 marks)

c.    Describe the changes in the rich to poor ratio over time for each country. (2 marks)

d.   See this article about Gabon:https://www.theguardian.com/global-

development/2016/aug/16/gabon-yawning-poverty-gap-end-dependency-oil

On the basis of this article provide a brief explanation for the rich to poor ratio in Gabon between 1982 and 2014. (5 marks) (Word limit 120)

Question 2  | [10 marks]

Consider the example of Greta and Carlos discussed in The Economy textbook Unit 1 Section 1.8 and  Figure 1.9a and 1.9b (the link is available under Week 1). Assume the market price is now 1 tonne of wheat can be traded for 48 apples. Greta proposes a trade of 14 tonnes of wheat with Carlos.

a.   What would Greta and Carlos have available to consume of both goods if the trade goes ahead?  (4 marks)

b.   Would both Carlos and Greta be better off after the trade? Explain. (6 marks)

Question 3  | [10 marks]

a.   Identify whether each scenario is an example of a marginal cost, marginal benefit, or neither. Briefly explain your answers. (Each scenario is worth 1 mark)

(i)  So Smooth Coffee sells bags of coffee at a price of $10 each. The $10 is …

(ii) The average cost for Never Cancelled Air to fly a 200-seat plane between New York City and Los Angeles is $60,000. The $60,000 is …

(iii) Alan is the chef and owner at Alan's, whose best-selling specialty is poblano tacos.

Yesterday, he made $870 selling 29 poblano tacos dishes at $30 each. Today, he made $1,410, selling 47 dishes of poblano tacos, more than he made yesterday. The $1,410 is …

(iv) So Smooth Coffee produces bags of coffee. Their cost to produce each additional unit

decreases from $7.00 to $2.25 because their coffee supplier now gives them a bulk discount. The $2.25 is …

(v) Zoe and her family are starting a business selling custom bike parts. To start the business, they must pay $5,000 in up-front costs to lease space and buy equipment. The $5,000 is …

(vi) Michele owns a video game company. The company releases a new game called

"Amphibian Correction." It is a hit, and it only cost $5 per copy to produce each copy. The $5 is …

b.   Sara is considering the establishment of a solar panel installation business. She foresees selling   10 solar panels at a price of $100 each. Additionally, she has already spent $500 on marketing and advertisement. If she opts to move forward with the business, she will face additional costs of $60 (per unit) for labour and panels.

(i)  If Sara decides to proceed with the installation business, how much profit will she make? (2 marks)

(ii) Based on this information, what recommendation would you provide to Sara regarding whether or not to proceed with this business? (2 marks)

Question 4  | [20 marks]

The collapse of the Francis Scott Key Bridge into the Patapsco River in Baltimore on Tuesday, March 26, 2024, is expected to cause significant disruptions to shipping operations. Baltimore's port, renowned as one of the most critical ports in the USA, is responsible for handling the largest volume of sugar shipments. In the aftermath of this incident, the port has been temporarily closed, necessitating alternative shipping routes for sugar shipments. Consequently, sellers are facing increased transportation costs due to the diversion of shipping routes.

a.   Assume that the market for sugar is perfectly competitive. Using a supply and demand model, illustrate the equilibrium price and quantity of sugar before the incident in the USA. (2 marks)

b.   On your graph, indicate the size of Consumer Surplus (CS), Producer Surplus (PS), and total   Economic Surplus (TS) in this market at equilibrium. Label the areas representing CS, PS, and TS on the graph. (3 marks)

c.    What three tests/characteristics do economists look for when determining if a market is perfectly competitive? (3 marks)

d.    How important is spending on advertising in a perfectly competitive market? Briefly explain your answer. (2 marks)

e.   Redraw your diagram and demonstrate the impact of this incident on the equilibrium price and quantity of sugar. (4 marks)

f.    Is the new equilibrium at an efficient level? Does the impact of this incident on price create any Deadweight Loss (DWL)? Briefly explain your answers. (2 marks)

g.   Now, suppose that alongside the above-mentioned incident, this market experiences a negative demand shock, leading to a decrease in demand for sugar. Using your graph, analyse the simultaneous impact of these two shocks on the equilibrium quantity and price of sugar. (4 marks)

Question 5 | [25 marks]

Suppose that the demand and supply for pack of cigarettes is represented by the given equations.

Demand:  P=50−2Qd

Supply:    P=15+3Qs

where P stands for price, Qd stands for quantity demanded, and Qs stands for quantity supplied.

a. Calculate the equilibrium price and quantity and draw a diagram to illustrate your answer. Your answers must include both a diagram and words to clearly explain your diagram. In addition, your diagram must be fully labelled and therefore you must label both axes, correctly determine the vertical axis and horizontal axis intercepts, and show the equilibrium price and quantity associated with it. (3 marks)

b. Assume that each pack of cigarettes incurs an additional external cost of $5 due to the health risks associated with second-hand smoke. Analyse if the equilibrium quantity in part (a) reflect the socially optimal level of quantity? Support your answer by examining the presence of deadweight loss (DWL) on your graph. (3 marks)

c. Suppose you've been appointed by the government to evaluate the effects of imposing a

tobacco excise tax on cigarette suppliers to address public health issues. What specific corrective tax per pack of cigarettes would you propose, and what rationale would you provide to support your recommendation? (2 marks)

d. What are the new prices paid by consumers and received by producers, and what is the new quantity bought? (3 marks)

e. For the scenario after the introduction of the tax, illustrate on your diagram and compute the following:

(i)       Consumer surplus

(ii)       Producer surplus

(iii)      Deadweight loss

(iv)      Total Surplus

Ensure to provide calculations alongside your graphical representations. (4 marks)

f.  Based on your analysis, determine which party bears a greater proportion of the tax burden in this example and briefly explain why. (4 marks)

g. Is society worse off or better of as a result of the imposition of the per unit tax? Briefly explain your answer. (2 marks)

h. Suppose the average price of a pack of cigarettes fell by 14%, resulting in a 36% decrease in    the number of vapes sold in 2021 and a 7% increase in the number of packs of cigarettes sold during the same period. Based on this information:

(i)       Determine whether cigarettes and vapes are substitutes, complements, or unrelated goods. Support your answers by referencing the appropriate elasticity. (2 marks)

(ii)      If the government wanted to increase its tax revenue, would you suggest an    increase in the tax per unit on cigarettes? Support your answer by referencing the appropriate elasticity. (2 marks)

Question 6 | [200-Word limit, 20 marks]

As discussed, Australia is facing a deepening rental housing crisis (What broke the rental market?(ABC, 2023);Housing crisis worsens (ABC, 2024)). Considering the current crisis of rental apartments in Australia, analyse the situation from an economic perspective. Drawing on the concepts and theories learned so far in this unit, propose and justify potential solutions to address the challenges faced by renters and alleviate the housing shortage. In your response, be sure to consider factors such as supply and demand dynamics, government intervention policies, market efficiency, and potential unintended consequences of proposed solutions.

DOCUMENT PREPARATION CHECKLIST

BEFORE YOU SUBMIT

☐ My assignment is written in full sentences and in clear formal language.

☐ My assignment is proofread, and errors and typos are minimised.

☐ My assignment is written within the word limit for each question (if applicable).

☐ Diagrams are drawn clearly and fully labelled. Poorly drawn diagrams reflect poor communication which may result in a loss of marks.

☐ Diagrams are not distorted and are properly inserted into the document.

☐ I have read the rubric on the next page and made sure that my assignment meets the criteria.

AFTER YOU SUBMIT

   I have double-checked whether the document was properly uploaded.

   I have seen my Turnitin originality report (generated after the deadline).