economics

School: Business, Innovation and Entrepreneurship Department: Business, Management and Finance Semester 1 201 7 Page 1 of 7 pages Assignment Tasks B ACC 1 13 and HMD206 Semester 1 – 201 7 Major Assignment Part A and Part B YEAR : 2017 SEMESTER : 1 COURSE (S): Bachelor of Accounting HEBSBACC Associate Degree of Accounting HEBSACC11 Bachelor of Hospitality Management HETHTHM Associate Degree of Hospitality Management HETHTHMAD SUBJECT : Fundamental Micro and Macro Economics BACC113 Economics HMD206 CONTRIBUTION TO OVERALL ASSESSMENT : This assignment is in two parts. Each part is worth 20% of total assessment . DUE DATE : Part A is due in Week 7 and Part B is due in Week 12 at 5pm via Moodle. PARTICIPATION AND SUBMISSION REQUIREMENTS : This is an individual assignment . Each part has a word limit of 1000 words. PLAGIARISM AND OTHER COMPLIANCE ISSUES :

TURNITIN : This report must comply with Melbourne Polytechnic policies and academic conventions for report writing, plagiarism and referencing. Your teacher will discuss these policies with you and further information is available on the Melbourne Polytechnic Student Intranet. Before submitting your work, you are required to enrol as a student in Turnitin and submit your work to check for plagiarism. Your Class ID is: 14137671 and the password is : SEM12017ECO. To get on to Turnitin, log on to the Library portal and look for the Turnitin Menu and follow instructions. ASSESSOR (S): Mei Leng Rankin School: Business, Innovation and Entrepreneurship Department: Business, Management and Finance Semester 1 201 7 Page 2 of 7 pages Student Name: Student I.D.: Year / Semester: Course: Subject Name: Lecturer: Assessor’s Use Only Date submitted: Date marked: Contribution to final mark: Mark achieved: ASSIGNMENT INSTRUCTIONS /QUESTIONS School: Business, Innovation and Entrepreneurship Department: Business, Management and Finance Semester 1 201 7 Page 3 of 7 pages Assessment t ask and requirements Due Marks Part A Question 1 In economics, the concept of a market is important. Explain why this is so. What is the role of the price mechanism? (10 marks) Question 2 For each of the following explain how the demand and/or supply curve(s) will change. State all necessary assumptions. Draw diagrams to illustrate your answers. a) Supply of lamb as the price of beef increases b) Demand for restaurant meals as your personal income increases (10 marks) Question 3 The following table shows the price and quantity demanded for a product. Calculate the elasticities of demand and the total revenue for this product. What conclusions can you draw about the relationship between elasticity and total revenue? Price Quantity Demanded Elasticities Total Revenue $10 10000 $9 13000 $8 17000 $7 22000 $6 25000 (15 marks) Question 4 Martha is an experienced pastry Chef working at a five star restaurant in the city . Twelve m onths ago, she decided to take a year ’s leave without pay to try her hand at writing recipe books. She hoped to publish a best seller or two. At the end of the year , the following information is known:  Her salary as a pastry Chef is $60,000 a year.  She rented a small studio for $6000 during the year for her literary venture.  She had savings in the bank earning interest at 10% p.a. She withdrew $4000 of her savings to purchase a computer, printer and digital camera.  She spent $2000 on stationary, postage, utilities and traveling expenses associated with her literary work.  She published two recipe books and several magazine articles, receiving royalties adding up to $80 ,000. From an Accountant’s point of view, what is Martha’s profit from her literary venture? From an Economist’s point of view, what is Martha’s profit from her literary venture? (10 marks) Week 7 20% School: Business, Innovation and Entrepreneurship Department: Business, Management and Finance Semester 1 201 7 Page 4 of 7 pages (1000 words) TOTAL MARKS FOR PART A : 45 marks plus 5 marks for Referencing, Structure and presentation (20%) Part B Question 1 A typical profit maximising fir m in a competitive industry of 1 000 firms has fixed costs of $80 per week and variable costs as per Table 1 : a) Complete Table 1 . b) In the short run, determine the quantity the firm will supply at market prices of $104, $55, and $44 . At these levels, is the firm making a profit or a loss? Explain. c) Using Table 2, record the firm’s and industry’s short run supply. d) Determine what the representative firm’s profit maximising output is. Draw a graph to illustrate this profit maximising position. e) Calculate the actual pr ofit/loss earned and explain the long run implications of this short run equilibrium for the firm and industry. (3 + 8 + 4 + 5 + 5 = 25 marks) Question 2 Explain how the government in Australia can stimulate the economy during a recessionary period. Explain your answer with the use of relevant examples and diagrams. Week 1 2 20% Table 1 Total Output Total Fixed Costs Total Variable Cost Total Cost Average Fixed Cost Average Variable Cost Average Total Cost Marginal Cost 0 80.00 $ - $ 1 110.00$ 2 150.00$ 3 180.00$ 4 220.00$ 5 270.00$ 6 340.00$ 7 440.00$ 8 580.00$ Table 2 Product Price Market Demand Market Supply Represen tatitve Firm's Supply 104.00$ 5500 80.00 $ 6000 55.00 $ 7200 44.00 $ 7900 School: Business, Innovation and Entrepreneurship Department: Business, Management and Finance Semester 1 201 7 Page 5 of 7 pages (15 marks) Question 3 Explain the differences between discretionary fiscal policies and automatic stabilisers. In what way (s) are automatic stabilisers counteracting the effects of discretionary fiscal policies? (15 marks) (1000 words) TOTAL MARKS FOR PART B: 5 5 marks plus 5 marks for Referencing, Structure and presentation (20%) . School: Business, Innovation and Entrepreneurship Department: Business, Management and Finance Semester 1 201 7 Page 6 of 7 pages Assessment Rubrics Part A Name:_________________________ Marks : /50 Diagrams/Tables /Calculations Discussion Q1 (10 marks) Cut and paste from various sources Disjointed and not addressing the question asked. Long winded. Concise, well discussed and clear. Q2 (10 marks – 5 marks each part; 2.5 for diagrams and 2.5 for discussion) No diagrams Cut and paste from various sources Diagrams scanned or copied and not properly labelled and sourced Disjointed and not addressing the question asked. Long winded. Well labelled, neat and relevant. If scanned, relevant and properly sourced Concise, well discussed and clear. Q3 (15 marks) Completed calculations with no evidence of calculations performed No discussion of the relationships Completed table with workings demonstrated Cut and paste from various sources Concise, well discussed and clear. Q4 (10 marks – 5 marks per part ) Answers presented with no demonstration of workings Completed calculations with workings demonstrated Structure, Presentation and Referencing (5 marks) No proper referencing, no paragraphing, untidy Referencing is untidy and structure is untidy Correct referencing and well -structured with correct font School: Business, Innovation and Entrepreneurship Department: Business, Management and Finance Semester 1 201 7 Page 7 of 7 pages Assessment Rubrics Part B Name:_________________________ Marks : /60 Diagrams/Tables/Calculations Discussion Q1 (25 marks) Marks allocations as shown in Question Q2 (1 5 marks - 3 marks for diagrams, 12 for discussion) No diagrams Cut and paste from various sources Diagrams scanned or copied and not properly labelled and sourced Disjointed and not addressing the question asked. Long winded. Well labelled, neat and relevant. If scanned, relevant and properly sourced Concise, well discussed and clear. Q3 (15 marks; 7.5 marks per part) Cut and paste from various sources Disjointed and not addressing the question asked. Long winded. Concise, well discussed and clear. Structure, Presentation and Referencing (5 marks) No proper referencing, no paragraphing, untidy Referencing is untidy and structure is untidy Correct referencing and well -structured with correct font