Mr Pake

5. Assessment DRAFT VERSION AWAITING outdoor(a) EXAMINER APPROVAL Assessment will be confirmed by the end of teaching hebdomad 3 5. 1 Assessment task This staff is assessed by means of an grant of no to a greater extent than 3,000 oral communication. There are three parts to the assigning. You moldiness complete all three parts. Your assignment moldiness be submitted in a sans serif font no smaller than 12 points. Line position should be 1. 5 or double. Your completed assignment must be completed and submitted by Friday twenty-sixth April, 2013. See ingredient 5. 2 for details of submission. Section 5. gives some further guidance on the assignment tasks. Written assignments must non exceed the contract maximum number of lecture. All assignments that do so will be penalised. The penalty is at the appreciation of the marker, but will certainly result in a reduction of the mark awarded. Part 1 (20% of all overall mark) In 500 words or fewer, answer a interrogative mood of your choice which requires you to wasting disease a microstinting principle, or principles, discussed in the module. This enquire should involve a pattern of events or conduct that you personally shit observed.The issue you address aim not be one traditionally analysed victimisation economicals, but your work should be an original occupation of economic logic and reasoning to something which interests you. Examples of issues students elsewhere have addressed are 1. wherefore do brides eliminate so much money on wed dresses, whereas grooms often rent cheap tuxedos, even though grooms could potentially wear their tuxedos on many different occasions and brides will never wear their dresses again? 2. Why are child safety seating required in cars but not in airplanes? 3.Why are round-trip fares from Hawaii to the US mainland higher than the agree fares from the US mainland to Hawaii? 4. Why do airlines fear much more for tickets purchased at the last minute, to date thea tres follow exactly the opposite practice? 5. Why do many people buy bigger houses when they retire and their own children leave home? Your question and the issue you address does not inquire to be important or worthy, but try to cast down with an interesting question. You should check with your seminar tutor that the question you worry to address is suitable.The most successful answers begin with a really interesting question (one that makes the reader in a flash curious to learn the answer) and thus use an economic principle or principles to construct a pat answer. You do not have to provide a complete solution to the question the key is to break economic principles to achieve an insight into the issue. It should be indite as if to a friend or relative who has never taken a course in economics. It must be clearly understood by such a person. It does not need diagrams or mathematics. It should not be heavily laden with economic jargon or terminology.You do not need to inc lude references (since it is an original application of principles). Nor are you pass judgment to do extensive research in plunk for of your argument, although a relevant fact or dickens top executive help convince yourself and others that you are on the right track. Part 2 (40% of overall mark) response all five questions below in 1250 words or fewer. The questions carry equal marks. a) Explain wherefore perfectly competitive markets lead to an allocatively efficient parcelling of resources in the long run. (8%) b) Explain why desolate markets will under-produce goods with positive externalities (e. g. accinations against infectious diseases). Briefly enkindle how government might intervene to correct this under-provision? (8%) c) The Consumer expenditure Index (CPI) is the official measure of inflation in the United Kingdom. Why might CPI not be an accurate measure of the costs of brisk for any given individual consumer? (8%) d) Explain why a ? 1m emergence in net expo rts might increase the equilibrium output of an economy by more than ? 1m. e) If an economy is initially operating at its potential output, develop the short- and longrun consequences of a permanent increase in government spending. 8%) Part 3 (40% of overall mark) Figure 1 below shows the homo outlay of copper for each month over the menstruum 2004-2011. From a price of $2424 in January 2004 it move up to a high of $8046 in May 2008. It then fell rapidly to reach $3072 in celestial latitude 2008 before rising again. In an essay of 1250 words or fewer, use economic analysis to explain the changes seen in the price of copper over this period and why there were such large fluctuations in price. Figure 1 The monthly world price of copper 01 January 2004 to 31 December 2011