1.A balanced federal budget and balance of trade are considered secondary goals of macroeconomics while growth in the standard of living is considered a primary goal.Why do you think so? (or) 2.Give...

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1.A balanced federal budget and balance of trade are considered secondary goals of macroeconomics while growth in the standard of living is considered a primary goal.Why do you think so?



(or)


2.Give an example of a problem in the world today that is not mentioned in the chapter but that has an economic dimension



(or)


3.What is globalization and how do you think it might have affected the economy over the past decade?



(or)


4.It is clear that productive inefficiency is a waste since resources are being used in a way that produces less goods and services than a nation is capable of.Why is allocative efficiency also wasteful?



Module 1: (Answer any 2 questions; each question weighs 2 marks. 2 * 2= 4 marks)






















Module2:(Answer any1question;each question weighs4marks;4*1=4marks)-due by 07thJuly 2019



1.Is the demand curve the same as quantity demanded – illustrate with a diagram


(or)


2.A)Examine the table given;draw the demand and supply schedules and determine equilibrium quantity and price















































Price per gallon(in$)



Quantity demanded



Quantity Supplied



1.00



800



500



1.20



700



550



1.40



600



600



1.60



550



640



1.80



500



680



2.00



460



700



2.20



420



720




B)Suppose the price of gasoline is$1.60per gallon,is the quantity demanded higher than or lower than he equilibrium price?What about the quantity supplied?Will there be a shortage or surplus in the market?If so,by ow much is the shortage or surplus?











Module3:(Answer any1question;each question weighs4marks;4*1=4marks)



1.Fred currently works for a corporate law firm.He is considering opening his own legal practice where he could earn around$200K once he establishes himself.To run his own law firm,he needs an office and a law clerk.The rent for his office is around$50,000p.a.and the law clerk can be hired for approximately$35,000p.a.If these figures are accurate,will Fred’s legal practice be profitable?


(or)


2.How do economies of scale compare to diminishing marginal returns?


(or)


3.How does advertising impact monopolistic competition?










with above questions answers i need the two short assignments done attached in the files in a single word file. the upper answers should be separately done in three parts. make user to do referencing and table of content & cover page done with all correct editing & skills . I need to pass with high distinction because I'm failing in this subject otherwise make it High distinction please.


Answered Same DayJul 05, 2021ECON6000

Answer To: 1.A balanced federal budget and balance of trade are considered secondary goals of macroeconomics...

Soma answered on Jul 10 2021
135 Votes
2
Name:
Student number:
Subject code: ECON6000 Economic Principles and Decision Making
Assessment: Module 1 and 2 - Assessment 2: Short written assessment
Date:
Table of Contents
    Descriptions
    Page No.
     Module: 1
    3
     Module: 2
    6
    Module: 3
    10
    References
    11
Module: 1
3.What is globalization and how do you th
ink it might have affected the economy over the past decade?
Solution:
Globalization can be defined as the multifaceted process that has significantly improved the flow of trade, capital, resources and culture among the nations. The socio-economic implications of globalization is huge that has transformed the world today. The impact of globalization is no doubt felt by every country across the world though is varying magnitude. Due to easy flow of goods and services and enhanced integration among the countries, globalization has significantly contributed to boost the economic growth and promote economic prosperity for majority of the nations. It has been advocated by most of the economists that globalization provides more benefit than cost – it improves the international competitiveness of the economies across the world thereby make the global market more efficient and competitive. But on the negative side, globalization has increased the risk of macroeconomic instability, leads to environmental degradation and even erosion of cultural identity. But I personally believe the benefits associated with globalization has far outpaced the cost therefore globalization must be embraced by all the governments, business analysts and the policymakers in the world. (Kuepper, 2018)
4. It is clear that productive inefficiency is a waste since resources are being used in a way that produces less goods and services than a nation is capable of.Why is allocative efficiency also wasteful?
Solution:
Productive inefficiency is wasteful in the sense that it wastes materials and resources. On the other hand, an efficient production is associated with lower cost because it does not waste any materials or energy. Inefficient production whether it is a machine or an organization operates at a higher cost. (Khanacademy)
Allocative efficiency implies the society is producing a certain combination of goods along the production possibility frontier and the combination represents the mix that the society desires the most. If the production does not attain allocative efficiency, it simply implies the mix of production process occurs inside the PPF that are wasteful. For example, a monopolist or a cartel produced smaller output and charges higher price results in allocative inefficiency. It leads to waste of resources and the making the consumers worse off. Thus allocative inefficiency is said to be wasteful. (James D Gwartney, 2014)
Module 1: (10 marks)
1) Draw a graph of the demand curve for a normal good like noodles.
DD
Price
Demand curve for noodles
DD
Quantity demanded
2) Suppose income increases, will consumers buy more noodles; explain
Consumer income is the key determinant of the demand for noodles. When the income increases, consumers have more income to buy more noodles. Since noodles is a normal good, consumer’s income has a direct relation with the demand for noodles. With the increase in income, consumers will buy more noodles resulting a rightward shift of the demand curve. (Nicholas Gregory...
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