Economics topic
Assignment 2
Value: 40%
Due date: 01-Sep-2014
Return date: 22-Sep-2014
Length: about 1500-2000 words each
Submission method options
Alternative submission method
Task
Analytical essays.
ESSAY TOPIC 1:
Consider the following issues in the context of materials presented in chapters 3 and 4 (i.e. Demand and supply, and Elasticity).
In the recent Australian budget the coalition Government has announced deregulation of the higher education sector with a view to make the sector globally competitive. The deregulation will result in the allocation of Commonwealth supported undergraduate places not only to the university sector but also to TAFEs and private providers from 2016. The deregulation will also allow the Australian universities and other providers of higher education to set their own fees. In the context on this development you are asked to answer following questions.
Discuss the impact of deregulation on:
(a) Demand for undergraduate courses offered by the Australian universities. Use demand curve to show the impact. Also, discuss if the impact will be the same in all universities regardless of their location (such as regional vs urban).
(b) Based on your answer in part (a) discuss what will happen, in the short-term, if the aggregate supply of undergraduate places (offered by the university sector) does not change.

ESSAY TOPIC 2:
Q2. Consider this question in the light of materials presented in chapters 12 and 13 (i.e., Consumer choices and constraints, and Producers' choices and constraints).
You are a senior business analyst at the Australian Automotive Industry and have been asked to investigate the viability of the following statement in the context of the decision to cease the production of passenger motor vehicles in Australia.
“Increased availability of a large number of imported passenger motor vehicles, small size of Australian market and the high cost structure of the economy are the root causes for the collapse of the Australian automotive industry”.
Your task is to write a policy oriented report using the concepts of consumer choices and constraints, and producers’ choices and constraints.
You may find the following case studies entitled ‘Produce More to cut cost (page 297 of the textbook, chapter 13) of some help.
Rationale
In your working life you will be required to present arguments and explain your decisions. Economics gives you tools to do this. However, many of those with whom you work will have little, if any, understanding of the principles of economics and their application. To communicate with these people you will have to put your arguments succinctly into language that they understand. This does not mean that your argument is any less rigorous or sophisticated. Rather, it means that you are being asked to communicate important concepts and decisions in a manner that most people can understand