Assignment Tasks
BACC113/HMD206 Semester 2 – 2017
Major Assignment
Part A and Part B
YEAR: 2017
SEMESTER: 2
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: 15567654 and the password is : ECOS22017. 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
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:
Assessment task and requirements Due Marks
Part A
Question 1
Anna Pastry has just recently competed in a well-known TV reality cooking show. During her time on the show she made her name for herself being the “Pastry Queen”. On leaving the show, Anna decided to rent a small shop in South Melbourne market and started selling her pies.
The weekly demand and supply schedules for her blueberry pies (in thousands) are given in the table below:
Price($) Quantity
Demanded Quantity
Supplied
8 12 36
7 16 32
6 20 28
5 24 24
4 28 20
3 32 16
2 36 12
1 40 8
(a) Using EXCEL, plot the demand and supply curves.
(b) What are the equilibrium price and quantity traded?
(c) Assume that during the wintry months, there has been an increase in demand for Anna’s pies by 4 thousand pies. Draw the new demand curve.
(d) What are the new equilibrium price and quantity traded?
(10 marks)
Question 2
Assume that interest rates have recently risen, and housing shortages have created a rental crisis in Melbourne. In the absence of rent controls, the free forces of demand and supply will create the equilibrium levels. Draw a diagram to illustrate the equilibrium rental price of $1200 per month, and quantity of 4000 rental dwellings. What would be the effect if a rent ceiling of $1000 per month was imposed on the market? Show this in your diagram. In your opinion, should the rent control be implemented or should the free forces of demand and supply be allowed to determine equilibrium in the rental market. Explain your reasoning.
(5 marks) Week
7 20%
Question 3
What type of a market structure does the fast food restaurants such as Hungry Jacks, McDonalds, KFC,
Dominoes Pizzas operate in? Explain your answer. (This question requires you to do some research to provide examples to back your discussion).
(15 marks)
Question 4
The following table shows the cost schedule of a company. In the short run, the company incurs a total fixed cost of $210. Complete the table. Using EXCEL, graph the marginal and average cost curves. Briefly explain the
relationships you have observed. (15 marks)
Total
Output Total Fixed
Costs Total
Variable
Cost Total Cost Average
Fixed Cost Average
Variable
Cost Average
Total Cost Marginal
Cost
0 $ 210.00 $ -
1 $ 20.00
2 $ 30.00
3 $ 50.00
4 $ 90.00
5 $ 170.00
6 $ 330.00
7 $ 650.00
(1000 words)
TOTAL MARKS FOR PART A: 45 marks plus 5 marks for Referencing, Structure and presentation (20%)
Part B
Question 1
Obtain the real GDP series of the Australia economy from 2000 to 2016. (You may find this in the ABS website or the RBA website). Plot the series and briefly describe what you observed.
Calculate the economic growth rate over this same period and graph the growth series. Give a brief discussion of the economic growth rate you have observed. Discuss three factors that you may think of that had contributed to the growth rate over this period.
(20 marks)
Question 2
a) The following question is taken from Layton el al.p341.
Consider this statement: ‘When the average level of prices of goods and services rises, the inflation rate rises. Do you agree or disagree with this statement? Explain.
b) Assume that in January, 2014 you invested $5000 in a bank deposit that was paying a nominal interest rate of 4.5% p.a. A year later, you withdrew your investment. Over this period, the inflation rate was 2.1%. Calculate the actual amount you will receive.
c) The following table shows the CPI figures for Australia from the December quarter of 2012 until the December quarter of 2016. Calculate the inflation rates over this period and briefly explain what you have observed. (You need to show your workings). What was the annual inflation rate for 2016?
Week
12 20%
d) Using December 2013 as the base quarter, explain what happened to the purchasing power of the dollar in March 2015.
(3 + 5 + 5 + 2 = 15 marks)
Question 3
(a) Using the AD-AS framework, explain the impact of a cut in personal income taxes on the economy. What type of a policy is a cut in personal income taxes?
(b) If we assume that the RBA is concern about the consequences of the income tax cuts, what sort of policy should the RBA pursue? Using the AD-AS framework, explain the consequences of this policy on the economy.
(15 marks)
(1000 words)
TOTAL MARKS FOR PART B: 50 marks plus 5 marks for Referencing, Structure and presentation (20%).
Assessment Rubrics
Part A
Name:_________________________ Marks: /50
Diagrams/Tables/Calculations Discussion
Q1 (10 marks) 2.5 marks each. Diagrams
must be drawn using EXCEL and neatly presented and labelled and copied into Word.
Any scanned or hand drawn diagrams will receive a maximum of 1 mark only
Q2 (5 marks) Neat drawing 2marks. Discussion 3 marks. Cut and paste from various sources
Neat hand drawn diagram will be accepted for this
question Disjointed and not addressing the question asked.
Long winded.
Concise, well discussed and clear.
Q3(15 marks) Discussion must show evidence of research conducted. Cut and paste from various sources
Disjointed and not addressing the question asked.
Long winded.
Concise, well discussed and clear.
Q4 (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.
Completed calculations with workings demonstrated
Assessment Rubrics
Part B Name:_________________________ Marks: /55
Diagrams/Tables/C alculations Discussion
Q1 (15 marks - 4 marks for diagrams, 5 marks for
calculations, 6marks 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.
Q2 (15 marks) Marks allocation as shown Cut and paste from various sources
Disjointed and not addressing the question asked.
Long winded.
Concise, well discussed and clear.
Q3 (15 marks) 5 marks each..1.5 marks for well labelled diagrams and 3.5 marks for appropriate discussion 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
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