ICEFE Economics Relevant Economic Theory Activity

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QQI L6 Applied Economics 6N4091
Assessment Brief 3(AA) – Micro Economics 50%
Learning Outcomes 3,5,6,8, 9,10
Class:
BHR6
Date handed out: 29/03/22
Tutor: Margaret Doogan
Submission date:
Assessment Criteria
26//04/22
Max.
Mark
Q1 Understanding of relevant economic theory
15
Q2 Understanding of relevant economic theory
15
Q3 Understanding of relevant economic theory
15
Q4 Understanding of relevant economic theory
5
Subtotal
50
Total Mark out of 50:
Page 1 of 6
Learner
Mark
Presentation Guidelines:
•
Your assignment should be word-processed (font size 12, line spacing 1.5)
•
All sources should be referenced using the Harvard referencing system
•
Answer all questions
•
Diagrams can be hand-drawn but you will need to take a photograph and insert it into
the assignment. Suitable diagrams can be sourced from the internet but must be
referenced appropriately
Question 1 – Demand and Supply- 15 marks (LOs 5, 6, 9)
Q1a)
i.
Choose an economic good. This could be anything that you are familiar with e.g. a
bar of chocolate, a haircut, milk, a restaurant meal.
ii.
Give details of your chosen good to include: price, substitutes, complements, current
advertising/marketing campaigns.
iii.
For your chosen good:
(a)Explain ONE factor that would cause a movement along the demand
curve
(b)Explain the factors that would cause a shift outward (to the right) in a demand
curve.
Use diagrams to show the movement and shift in the curve
iv.
Explain two factors that would cause a shift in the supply curve for your chosen
good.
(10 marks)
Q1b)
Since February 2020, the national minimum wage in Ireland is €10.10 per hour.
Explain, using diagrams, the possible effects on labour market equilibrium assuming
that the market equilibrium hourly wage rate is €9.00 per hour.
Page 2 of 6
(5 marks)
Question 2 – Price Elasticity of Demand – 15 marks (LOs 6, 9)
Q2a) Explain how each of the following factors might influence the Price Elasticity of
Demand for Core Coffee, an imaginary coffee shop based in Inchicore:
i.
Core Coffee introduces a new loyalty scheme where you get one free coffee for
every five coffees purchased.
ii.
A new coffee shop opens in Inchicore offering a variety of high-quality coffee
drinks and snacks.
(4 marks)
Q2b) Is the Price Elasticity of Demand for each of the following goods relatively price
elastic or relatively price inelastic? Explain your thinking and include reference to
the factors that influence Price Elasticity of Demand
Q2c)
i.
Pat the Baker sliced white bread
ii.
Face masks in Ireland in April 2022
(4 marks)
Use your understanding of Price Elasticity of Demand to advise the government on
increasing tax on ONE of the following: Include both the possible advantages and
disadvantages of increasing the excise duty
i.
Petrol and Diesel – excise duty of approximately 62% of retail price
OR
ii.
Page 3 of 6
Cigarettes – excess duty of approximately 80% of retail price
(7 marks)
Question 3 – Market Structures 15 marks – (LOs 8, 9)
Q3a) Identify the following Market Structures
(4 marks)
Q3b) Name the curves labelled 1, 2 and 3
(3 marks)
i.
Name Curve #1
Name the Market
Structure
ii.
Name Curve #2
Name the Market
Structure
iii.
Name Curve #3
Name the Market
Structure
iv.
Page 4 of 6
Name the Market
Structure
Q3c
Give one example of
i.
a private firm operating as a monopoly in Ireland
ii.
a state monopoly in Ireland
iii.
a private firm operating in an oligopoly in Ireland
iv.
a monopolistically-competitive firm in Ireland
(4 marks)
Q3d For EACH of the above, explain why you believe that the firm belongs to this market
structure
(4 marks)
Question 4 – National Income – 5 marks (LOs 3, 9)
Q4a) Write a short note explaining the differences between GDP, GNP and Modified GNI
(3 marks)
Q4b) Why is GDP higher than GNP in the Irish context?
Page 5 of 6
(2 marks)
BREAKDOWN OF MARKS – ASSIGNMENT 3 (IAA)
Assessment Criteria
Max.
Mark
Learner
Mark
(subtotal)
Q1a. Introduction to good
Q1a. Demand curve – movement
Q1a. Shift Outward
Q1a. Supply curve – movement and shift
Q1b. Minimum Wage
2
2
4
2
5
(out of 15)
Q2a. Core Coffee * 2 Qs
Q2b. Pat the Baker
Hand Sanitizer
Q2c. Excise duty increase
2
2
2
2
7
(out of 15)
Q3a. 4 market structures * one mark each
4
Q3b. Label curves * one mark each
3
Q3b. Examples of firms belonging to market
structures * 4. 1 mark for identification, 1
marks for rationale
2
2
2
2
5
Q4a. National income * 3 measurements –
deduct 1 mark per measurement excluded
Total Mark out of 50:
Page 6 of 6
(out of 15)

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Explanation & Answer:
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Tags:
applied economics

economic functions

relevant economic theory

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