FINAL ASSESSMENT Student Number: (enter on the line below) Student Name: (enter on the line below) HI5003 Economics for business final assessmeNt Trimester 1, 2022 Assessment Weight: 50 total marks...

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FINAL ASSESSMENTStudent Number: (enter on the line below)Student Name: (enter on the line below)HI5003Economics for business final assessmeNtTrimester 1, 2022Assessment Weight: 50 total marksInstructions:· All questions must be answered by using the answer boxes provided in this paper.· Completed answers must be submitted to Blackboard by the published due date and time.Please ensure you follow the submission instructions at the end of this paper.Purpose:This assessment consists of six (6) questions and is designed to assess your level of knowledge of the key topics covered in this unit.HI5003 Final Assessment T1 2022 Question 1(7 Marks)Assume that during the years 2022 to 2025 Woodland Republic could produce only two commodities: tractors and rice. Also, assume that Woodland Republic can procuce at any of the positions represented by the production possibility schedule below.ABCDEFGHTractors 02479111314Rice (in tons)1009585706050300a. Suppose in 2022 the economy is producing at point D. What is the opportunity cost of producing 6 more tractors in 2023(3 Marks)ANSWER a): ** Answer box will enlarge as you typeb. Use the figure below to answer the questions that follow. i. Suppose, in 2024 the Minister of Finance in Woodland Republic advises the World Bank that in order to increase rice production and tractor manufacturing, each sector requires AUD50 billion, or a total of AUD100 billion. This AUD100 billion is made available by the World Bank. Explain the impact of these AUD100 billion budgetary allocations to the economy of Woodland Republic.(2 Marks)ANSWER i): ii. Suppose in 2025 Woodland Republic begins to manufacture fertilizers. Explain the impact of the discovery of fertilizers on the Woodland Republic economy.(2 Marks)ANSWER ii): Question 2(11 Marks)John plans to start a milk and pizza business in 2022. Suppose John owns a rental premises from which his rental earnings are AUD 3,000 per month. He asks the rental people to leave and uses the premises for the milk and pizza business. The table below represents John’s January business summary: ItemCost (AUD)1 Milk truck 120,000Milk stainless cans20,000Milk cooler 40,0002 litre milk packs (Number of packs bought depend on demand. Assume January average expenditure)30,000Pizza ingredients (Ingredients used depend on demand. Assume January expenditure)4,0002 cashiers (Assume a cashier per section [Milk and Pizza]. Also, wages depend on hours worked. Assume January average wages per cashier)3,0002 bakers (Wages depend on hours worked. Assume January average wages per baker)3,500Pizza packaging boxes (Boxes depend on demand. Assume average January boxes used)2,000Pizza special oven 25,000i. Milk production per day: 300 litres per dayNote: Assume 90,000 litres per month produced and bought. ii. Pizza production per day is 500 pizzas. Assume 15,000 pizzas per month are produced and all that are produced are sold. Use the table to answer the questions below.a. Calculate John’s fixed cost and average fixed cost for each section. (2 Marks)ANSWER a): b. Calculate John’s variable cost and average variable cost for each section. (2 Marks)ANSWER b): c. Assume John sells milk at AUD2.50 per litre. Also, assume John sells each pizza at AUD 10.00. Calculate John’s accounting profit and economic profit for the month of January. (7 Marks)ANSWER c): Question 3(7 Marks)Assume that Airbus and Boeing are the only firms that manufacture planes in the world. Answer the questions below. a. What is the market structure in which Airbus and Boeing operate? Explain your answer using the market characteristics for the two firms (Airbus and Boeing). (4 Marks)ANSWER a): b. Examine the market entry barriers that deter other firms from entering the market structure for Airbus and Boeing. (2 Marks)ANSWER b): c. What do you understand by the term “Mutual Interdependence” for Airbus and Boeing. (1 Mark)ANSWER c): Question 4(7 Marks)a. In 2021, the Woodland Republic Bureau of Statistics publication indicated that the Consumer Price Index (CPI) of the country increased to 109.2 in 2021 from 106.5 in 2020. Calculate Woodland Republic’s inflation rate in 2021. (3 Marks)ANSWER a): b. The Woodland Republic’s Population Secretariat published the following information in 2021:· Total population: 30 million· Labor force: 80% of the total population · Employed population: 21.5 million Use the information provided to answer the following questions:i. Calculate the population that is excluded from the labour force in Woodland Republic in 2021 and indicate at least four sectors that are excluded from labour force. (2 Marks)ANSWER i): ii. Calculate the Woodland Republic’s unemployment rate in 2021.(2 Marks)ANSWER ii): Question 5(7 Marks)(i) Use two (2) coincidental indicators to explain the conditions that are experienced in a nation during a recession.(2 Marks)ANSWER i): (ii) Examine the causes of business cycle fluctuations in a nation.(2 Marks)ANSWER ii): (iii) Suppose the following information was published by the Australian Bureau of Statistics in 2017:ItemAmount (AUD billion)Household consumption 5,029.81Government consumption20,340.92Exports1,386.39Value of cocaine seized at Sydney Airport 20,500Value of intermediate goods in tractor manufacturing 502,003Gross private domestic investment 352.69Imports386.95Components used in the manufacture of cars 40,000Gifts15,236Government investment88.19Value of second-hand goods500.00Value of banned endangered species elephant tasks seized at Melbourne Airport 600.00Use the information provided to calculate Australia’s GDP in 2017 (3 Marks)ANSWER iii): Question 6(11 Marks)Due to the severity of COVID 19 on households, the government of Australia announced Job Keeper Allowances to be given to the labour force that had lost employment. a. Examine the impact of Job Keeper Allowances during the COVID 19 recession on Australia’s economy. (4 Marks)ANSWER a): b. Examine two reasons that could explain why the government of Australia terminated Job Keeper Allowances though COVID 19 still impacted Australia. (3 Marks)ANSWER b): c. Assume the government of Australia spent AUD50 billion on allowances given to Job Keeper beneficiaries. Assume that despite the family financial stress, 15% of the Job Keeper Allowances was the total beneficiary savings. Further, assume all other factors remain constant. Calculate the total effect of the Australian government Job Keeper Allowance spending on aggregate demand for the economy. (4 Marks)ANSWER c): END OF FINAL ASSESSMENTSubmission instructions:· Save submission with your STUDENT ID NUMBER and UNIT CODE e.g. RWK1234 HI5003 · Submission must be in MICROSOFT WORD format only· Upload your submission to the appropriate link on Blackboard · You have two attempts to submit your assessment with only the final submission being marked. Please ensure your submission is the correct document as special consideration is not given if you make a mistake.· All submissions are automatically passed through SafeAssign to assess academic integrity.
Answered Same DayJun 22, 2022

Answer To: FINAL ASSESSMENT Student Number: (enter on the line below) Student Name: (enter on the line below)...

Rochak answered on Jun 22 2022
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FINAL ASSESSMENT

Student Number: (enter on the line below)
PSM3022
Student Name: (enter on the line below)
Rajesh Puram

HI5003
Economics for business
final assessmeNt
Trimester 1, 2022
Assessment Weight:     50 total marks
Instructions:
· All questions must be answered by using the answer boxes provided in this paper.
· Complete
d answers must be submitted to Blackboard by the published due date and time.
Please ensure you follow the submission instructions at the end of this paper.
Purpose:
This assessment consists of six (6) questions and is designed to assess your level of knowledge of the key topics covered in this unit.
            
        
HI5003 Final Assessment T1 2022
Question 1    (7 Marks)
Assume that during the years 2022 to 2025 Woodland Republic could produce only two commodities: tractors and rice. Also, assume that Woodland Republic can procuce at any of the positions represented by the production possibility schedule below.
    
    A
    B
    C
    D
    E
    F
    G
    H
    Tractors
    0
    2
    4
    7
    9
    11
    13
    14
    Rice (in tons)
    100
    95
    85
    70
    60
    50
    30
    0
a. Suppose in 2022 the economy is producing at point D. What is the opportunity cost of producing 6 more tractors in 2023    (3 Marks)
ANSWER a): ** Answer box will enlarge as you type
Opportunity cost is the cost which is incu
ed for producing an additional unit. In this case, the opportunity cost for producing an additional unit is to give out on the production of Rice.
If the economy is producing at point D (i.e., Tractors 7 units, and Rice 70 tons) and wants to produce additional 6 tractors in 2023 the opportunity cost for the same is 40 tractors, which will take the economy to point G.
. Use the figure below to answer the questions that follow.
i. Suppose, in 2024 the Minister of Finance in Woodland Republic advises the World Bank that in order to increase rice production and tractor manufacturing, each sector requires AUD50 billion, or a total of AUD100 billion. This AUD100 billion is made available by the World Bank. Explain the impact of these AUD100 billion budgetary allocations to the economy of Woodland Republic.    (2 Marks)
ANSWER i):
The impact of these AUD 100 billion budgetary allocations to the economy of Woodland Republic will be an expansion in the economy which will increase the production of both rice and tractor. In the graph, this will take the economy to PPF4.
ii. Suppose in 2025 Woodland Republic begins to manufacture fertilizers. Explain the impact of the discovery of fertilizers on the Woodland Republic economy.    (2 Marks)
ANSWER ii):
The impact of the discovery of fertilizers on the Woodland Republic economy will be an increase in rice production without missing out on any units of tractor manufacturing.
This discovery will take the economy to PPF3.
Question 2    (11 Marks)
John plans to start a milk and pizza business in 2022. Suppose John owns a rental premises from which his rental earnings are AUD 3,000 per month. He asks the rental people to leave and uses the premises for the milk and pizza business.
The table below represents John’s January business summary:
    Item
    Cost (AUD)
    1 Milk truck
     120,000
    Milk stainless cans
     20,000
    Milk cooler
     40,000
    2 litre milk packs (Number of packs bought depend on demand. Assume January average expenditure)
     30,000
    Pizza ingredients (Ingredients used depend on demand. Assume January expenditure)
     4,000
    2 cashiers (Assume a cashier per section [Milk and Pizza]. Also, wages depend on hours worked. Assume January average wages per cashier)
     3,000
    2...
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