Assessment item 3 back to topAssessment 3 - Short AnswersValue:20%Due Date:16-Sep-2018Return...

Question

Assessment item 3	back to topAssessment 3 - Short AnswersValue:20%Due Date:16-Sep-2018Return Date:05-Oct-2018Length:1600 wordsSubmission method options:EASTS (online)Task	back to topAnswer four (4)questions. Maximum of  400 words for each question. These are questions which require short  answer responses to a series of issues relating to economic principles  and concepts. Attempt to answer each question in full and directly.	Question 1	Total 4 marks - 2 marks per parta)  Classify each of the following items as a final good or service or an  intermediate good or service and identify which is a component of  consumption expenditure, investment or government expenditure on goods  and services:(i) Banking services bought by Coles.(ii) Security system bought by the ANZ Bank.(iii) Coffee beans bought by McDonald’s.(iv) New coffee grinders bought by Starbucks.	b)  Would GDP per capita comparisons accross countries accurately indicate  their relative levels of living standard and economic welfare?  Critically evaluate and answer this question.	Question 2	Total 6 marks - 2 marksa)  The unemployment rate has recently fallen in the United States to the  record low. Some economists have stated that this is not a sign of good  news, but rather bad news.	(i) Why does this mean that the drop in unemployment is bad news?(ii) What types of unemployment are included in the natural rate of unemployment?b)  There is considerable interest Australia in whether the minimum wage  rate contributes to youth unemployment. Draw a supply and demand diagram  for the unskilled labour market, and discuss the effects of a minimum  wage. Who is helped and who is hurt by the minimum wage?	Question 3	Total 6 marks - 3 marksa)  Contrast the phenomenon of cost-push inflation with demand-pull  inflation and likely impact of each on the price level and GDP using  aggregate demand and aggregate supply analysis (including graphs).	b)  The Turnbull government recently signed a contract with a French  company to build new submarines and plans to spend $60b for the  Australian Navy submarines. These ships will be built in South  Australia. Assuming fixed prices and that all monies will be spent in  Australia, explain how the Australian economy will be affected by the  $60b in new government purchases using AD-AS framework. (Remember: If  you do not talk about the AD and AS curves, you are not using the AD-AS  model.)	Question 4	Total 4 marks - 1 marka) Based on the simple quanity theory of money, what would be the impact of increasing the money supply by 25%b)  Suppose the consumer price index (CPI) stands at 250 this year. If the  inflation rate is 10 per cent, what the next year’s CPI will equal?c) What the consumption function explains?d)  A community's saving rate is an important determinant in the model of  economic growth. Suggest a couple of ways in which policy makers may  influence a nation's saving rate.Rationale	back to topThis assessment task will assess the following learning outcome/s:			be able to apply economic concepts and principles to daily life.				be able to construct graphs and diagrams to demonstrate how economic concepts and principles work in practice.				be able to analyse the impact of monetary and fiscal policy  on major economic variables such as inflation, unemployment and gross  domestic product.	Marking criteria and standards	back to topYour mark will be based on your responses  according to the following marking guide. Information and assistance  with referencing refer to  http://student.csu.edu.au/library/integrity/referencing-at-csu										Learning   outcome assessed										Criteria										HD				85%-100%										DI				75%-84%										CR				65%-74%										PS				50%-64%										FL																							Be able to apply economic concepts and principles to daily   life										Work applies principles of   economics correctly to realistic situations.			Applies  correct economic   principles; analysis is substantiated with workings,  and calculations in   order to arrive at the right answer. There are  negligible errors/no errors in   calculations.			Applies  correct economic   principles; description is substantiated with  workings, and calculations in   order to arrive at the right answer.  There are negligible errors/no errors in   calculations.			Applies  correct economic   principles; description is substantiated with  workings, and calculations in   order to arrive at the right answer.  There are minor errors in calculations.			Applies correct economic   principles, shows workings and calculations but contains some errors.			Applies  limited or no understanding   of relevant principles. Working and  calculations are either not shown or   contain major errors.																Be able to construct graphs and diagrams to demonstrate   how economic concepts and principles work in practice										Use diagrams in your answers to   provide a more comprehensive response.			Diagrams  created by students are   correctly and precisely labelled, relevant to  the specific question, and used   appropriately to demonstrate their  high level understanding of all key   economic concepts and principles.			Diagrams  created by students are   correctly and clearly labelled, relate to the  specific questions and   demonstrate a clear understanding of all key  economic concepts and   principles.			Diagrams  created by students are   correct with an attempt at labeling that  maybe unclear/incorrect, and   demonstrate an understanding of most of  the key economic   concepts and principles required   in this task.			Diagrams  created by students are   mostly correct with an attempt at labeling,  are relevant to the specific   question, and demonstrate some  understanding of basic economic concepts and   principles.			No  diagrams provided or they are   incorrect, poorly labelled or  irrelevant to the specific question. The   diagram fails to demonstrate  the students understanding of economic concepts   and principles.																Be able to explain the economic decision making of   producers and consumers and their interaction in the market place										Work applies principles of   economics correctly in discussing results, conclusions, and/or   recommendations.			Principles  are applied in the   appropriate manner to arrive at the correct  answer. Written work shows   analysis in order to interpret and make  highly   complex recommendations relating to economic principles covered  in   this subject.			Principles  are applied in the   appropriate manner to arrive at the correct  answer. Written work attempts to   analyse, and shows the ability to  interpret and make recommendations to   economic principles covered in  this subject.			Principles  are applied in the   appropriate manner to arrive at the correct answer.  Written work shows the   ability to interpret and make   some key recommendations to   economic principles covered in this subject.			Discussion reflects basic   understanding of relevant principles. Some inclusion of relevant   recommendations.			Principles  are not applied   appropriately, correct answer is not provided.  Written work does not make   suitable/relevant recommendations to  economic principles covered in this   subject.											Academic writing skills and   referencing						Information,  spelling, grammar and   written expression is set out in a coherent  manner, with   professional presentation. Appropriate use of font,  formatting, diagrams   etc., where relevant. Referencing follow the APA  style, (see the   presentation requirements).							Pass				Sustained, consistent and logical   presentation of work.   Accurate spelling and grammar,   excellent written expression and syntax.   Appropriate referencing of   articles and web-sites.							Structure of work does not   demonstrate a consistent and logical presentation format. Inaccurate spelling   and   use of grammar, inconsistent   written expression. Incomplete or inaccurate referencing.			Presentation	back to topThe following points are a general guide for presenting assessment items.Responses to assessment items should be typed. Use 1.5 spacing.Use  a wide left margin. Markers need space to be able to include their  comments. Use a standard 12pt font such as Times New Roman, Calibri or  Arial.Left- justify body text.Include a separate title page with  your name, student number, subject code, assessment number and  assessment question. Include class time and tutor’s name if applicable.  Number your pages (except the cover page).Use a header or footer with your name and student number on each page.Always keep a copy of your assessments. Both a hard copy and an electronic copy.Most  importantly, always use your spelling and grammar checker, but remember  that this does not pick up all errors. You must still manually and  carefully edit your work.You need to appropriately reference all the  articles, reports and web-sites you employ in developing your  assignments. Please use the APA style, information can be found at the  CSU Referencing website at:	http://student.csu.edu.au/study/referencing-at-csu	Requirements	back to topPlease use the APA style, information can be found at the CSU Referencing website at:http://student.csu.edu.au/study/referencing-at-csu

Abr Writing · Accepted Answer

Question 1
(i) This is a final service and identified as a component of investment expenditure. 
ii)This is a final service and identified as a component of consumption expenditure.
iii)Coffee beans is an intermediate good for McDonald which is used to produce the coffee. This is identified as a component of consumption expenditure.
iv)New coffee grinders are intermediate good for Starbucks to produce their final product. This is identified as a component of consumption expenditure. 
b) GDP has increasingly become a poor measure of living standards and economic welfare. The major distortion of GDP is the bias towards the manufacturing Sector. GDP as a measure of production was more relevant in a period when service sector was not predominant. But now service sector plays an important role. Service sector is increasingly become a major part of the economy. For example, manufacturing sector was one third off British GDP in 1950s but today it constitutes of only one tenth of GDP. But still manufacturing in factories are measured more closely than service. 
While measuring GDP, market price is fairly put straightforward to the value of output.  Several unpaid services like elderly care and baby care remain unaccounted despite they constitute significant value. On the other hand, GDP measures many things that lie outside the market economy – many government services are offered as free. For decades they were counted in the GDP measurement. It is only recently that statisticians are considering the output directly like number of students or number of operations performed by the heath service. 
 Many economists have identified GDP as a flawed measure of human welfare- GDP does not include the things that correctly gauge the living standards. The welfare of a nation cannot be inferred from the GDP figure. GDP does not consider the activities outside the realm of monetary exchange or market transactions irrespective of its role to human welfare. The crucial economic functions of household or the volunteer sector remain completely unrecognized in GDP accounts. 
Despite the several attempts in search of alternative measure of GDP, still we are in dearth of any suitable alternatives.  Some suggested alternative measure has been accounted like Genuine Progress Indicator and the Gross National Happiness Index but they are also found to be inadequate with several limitations and shortcomings. (Williams, 2014)
Question 2
a)
i)The current economic cycles in United States in setting several records. The unemployment rate is 30 year low- but the record low unemployment rate does not signify that the economy is performing well. It is true that more jobs are created but not enough skills. It has been found that young college graduates are not bringing enough soft skill or technical skill in the job market. So there remains a wide gap between the jobs created and skills required by the employer. (Bersin, 2018)
Despite the record low unemployment rate, the weak wage growth and shrinking labor force are two major weak spots of US economy.  It is very important to have a job growth that keeps up with the working age population growth.

Assessment item 3 back to top Assessment 3 - Short Answers Value: 20% Due Date: 16-Sep-2018 Return Date: 05-Oct-2018 Length: 1600 words Submission method options: EASTS (online) Task back to top...

Assessment item 3

Assessment 3 - Short Answers

Task

Rationale

Marking criteria and standards

Presentation

Requirements

Answer To: Assessment item 3 back to top Assessment 3 - Short Answers Value: 20% Due Date: 16-Sep-2018 Return...

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment

Learning outcome assessed	Criteria	HD 85%-100%	DI 75%-84%	CR 65%-74%	PS 50%-64%	FL
*Be able to apply economic concepts and principles to daily life*	Work applies principles of economics correctly to realistic situations.	Applies correct economic principles; analysis is substantiated with workings, and calculations in order to arrive at the right answer. There are negligible errors/no errors in calculations.	Applies correct economic principles; description is substantiated with workings, and calculations in order to arrive at the right answer. There are negligible errors/no errors in calculations.	Applies correct economic principles; description is substantiated with workings, and calculations in order to arrive at the right answer. There are minor errors in calculations.	Applies correct economic principles, shows workings and calculations but contains some errors.	Applies limited or no understanding of relevant principles. Working and calculations are either not shown or contain major errors.
*Be able to construct graphs and diagrams to demonstrate how economic concepts and principles work in practice*	Use diagrams in your answers to provide a more comprehensive response.	Diagrams created by students are correctly and precisely labelled, relevant to the specific question, and used appropriately to demonstrate their high level understanding of all key economic concepts and principles.	Diagrams created by students are correctly and clearly labelled, relate to the specific questions and demonstrate a clear understanding of all key economic concepts and principles.	Diagrams created by students are correct with an attempt at labeling that maybe unclear/incorrect, and demonstrate an understanding of most of the key economic concepts and principles required in this task.	Diagrams created by students are mostly correct with an attempt at labeling, are relevant to the specific question, and demonstrate some understanding of basic economic concepts and principles.	No diagrams provided or they are incorrect, poorly labelled or irrelevant to the specific question. The diagram fails to demonstrate the students understanding of economic concepts and principles.
*Be able to explain the economic decision making of producers and consumers and their interaction in the market place*	Work applies principles of economics correctly in discussing results, conclusions, and/or recommendations.	Principles are applied in the appropriate manner to arrive at the correct answer. Written work shows analysis in order to interpret and make highly complex recommendations relating to economic principles covered in this subject.	Principles are applied in the appropriate manner to arrive at the correct answer. Written work attempts to analyse, and shows the ability to interpret and make recommendations to economic principles covered in this subject.	Principles are applied in the appropriate manner to arrive at the correct answer. Written work shows the ability to interpret and make some key recommendations to economic principles covered in this subject.	Discussion reflects basic understanding of relevant principles. Some inclusion of relevant recommendations.	Principles are not applied appropriately, correct answer is not provided. Written work does not make suitable/relevant recommendations to economic principles covered in this subject.
Academic writing skills and referencing	Information, spelling, grammar and written expression is set out in a coherent manner, with professional presentation. Appropriate use of font, formatting, diagrams etc., where relevant. Referencing follow the APA style, (see the presentation requirements).	Pass Sustained, consistent and logical presentation of work. Accurate spelling and grammar, excellent written expression and syntax. Appropriate referencing of articles and web-sites.				Structure of work does not demonstrate a consistent and logical presentation format. Inaccurate spelling and use of grammar, inconsistent written expression. Incomplete or inaccurate referencing.