Order ID 53563633773 Type Essay Writer Level Masters Style APA Sources/References 4 Perfect Number of Pages To Order 5-10 Pages Description/Paper Instructions
Exam information
Course code and name ECON1010 Introductory Microeconomics Semester Semester 1, 2020 Exam type Online, non-invigilated Exam date and time Please refer to your personalised timetable Exam duration 24 hours You have a 24 hour window in which you must complete your exam. You can access and submit your exam at any time within the 24 hour Exam window window. Even though you have the entire 24 hours to complete and submit your exam, the expectation is that it will take most students between 2-3 hours. Reading time has not been formally allocated for online exams, however Reading time students are encouraged to review and plan their approach for the exam before they start. The total exam time should be sufficient to do this. Weighting This exam is weighted at 55% of your total mark for this course. Permitted materials This is an open book exam – all materials permitted. Required/recommended calculator; bilingual dictionary; phone/camera/scanner materials Answer ALL questions. Total questions: 5 Total marks: 55 Answers to the exam must be neatly hand written. Start each question on Instructions a new paper sheet. Scan your exam answers and save them as one pdf document. If you do not have access to a flatbed scanner you can use a phone app such as “Adobe Scan” or “Microsoft Office Lens”. Submit your file through Turnitin in the Final Exam folder on Blackboard. Should you have any issues about the assessment task, you should contact the Course coordinator during business hours between 8am and 5pm (Brisbane time –GMT +10) at d.hunt@uq.edu.au Who to contact If you experience any technical difficulties during the exam, contact the Library AskUs service for advice. You should also ask for an email documenting the advice provided so you can provide this to the course coordinator immediately.
Important exam condition information
This is an open book exam. You will have access to your own notes, course texts, and other materials.
The normal academic integrity rules apply.
You cannot cut-and-paste material other than your own work as answers.
You are not permitted to consult any other person – whether directly, online, or through any other means – about any aspect of this assessment during the period that this assessment is available.
If it is found that you have given or sought outside assistance with this assessment then that will be deemed to be cheating and will result in disciplinary action.
By undertaking this online assessment you will be deemed to have acknowledged UQ’s academic integrity pledge to have made the following declaration:
“I certify that my submitted answers are entirely my own work and that I have neither given nor received any unauthorised assistance on this assessment item”.
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ANSWER ALL FIVE QUESTIONS.
MARKS ARE AS INDICATED (Total Marks: 55)
Q1. [16 Marks] Drought to Hit Canola
Australia’s east coast drought will cut next season’s Canola production. But if rain returns, the crop could bounce back the following season. The global price of Canola is forecast to rise as a result of the fall in production.
- The market for Canola, it could be argued, follows the required features of a perfectly competitive List three features of an “idealized” perfectly competitive market that apply to the market for Canola.
(3 marks)
- Describe the canola market as a whole and the cost and revenue of one farm in 2020, assuming that all firms are making zero economic profit. Use well labelled graphs to assist your explanation.
(5 marks)
- Starting with the industry in long-run equilibrium, using your diagram from above explain how the drop in the canola crop next season, other things remaining the same, affects the canola market and an individual producer in the short run.
(4 marks)
- Starting with the industry in next season’s short run equilibrium, using diagrams explain how an increase in production the following season, other things remaining the same, affects the canola market and an individual producer.
(4 marks)
EXAMINATION CONTINUES ON NEXT PAGE
Q2. [11 Marks]
You own a sand mining business in the outer western suburbs of Brisbane. The quality of your sand is excellent and is the only sand of this quality in Brisbane. Your sand mine operates as a monopoly. You monitor the operations of your sand mine and have collected the following daily information regarding demand. This is shown in Table 1 below. The marginal cost of operating your sand mine has been estimated to be approximately constant at $30/tonne as a result of the nature of your sand mining operations, equipment used, and workforce employed.
Table 1
Price Quantity MC Revenue MR ($/tonne) (tonnes) ($/tonne) ($) ($/tonne) 135 0 – 120 100 105 200 90 300 75 400 60 500 45 600 30 700
- Copy Table 1 and complete the last three columns by calculating:
- the marginal cost of the sand per tonne
(1 mark)
- the revenue for each quantity of sand shown.
(1 mark)
- the marginal revenue for each quantity of sand shown.
(1 mark)
- On one diagram, draw and clearly indicate the demand, marginal revenue, and marginal cost lines (approximately to scale). Clearly label both the vertical and horizontal axes and indicate the units used.
(2 marks)
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- Using your graph from part b), clearly indicate on the graph:
- how many tonnes of sand should be mined per day to maximise profits. Assume this decision is based on using marginal analysis where the marginal benefits must equal the marginal costs of mining the sand.
(1 mark)
- the price to sell the sand ($/tonne) to maximise profits.
(1 mark)
- The marginal cost for the sand mining operation was given as $30/tonne.
- Write an equation, or define in words, what is meant by marginal cost. (1 mark)
- Thinking about a large-scale sand mining operation and the likely costs involved, explain in less than 50 words why marginal cost could be constant at $30/tonne.
(3 marks)
EXAMINATION CONTINUES ON NEXT PAGE
Q3. [10 Marks]
The figure below shows the market for goat meat, which is produced by breeding goats. The goats are bred by many herders on common land that is open access. The goats are allowed to eat the grass on the land.
Figure 1: Market for Goat Meat
- How many goats are bred in an unregulated market (i.e. no government control on goats breeding applies), and how many in a regulated market, where the government begins to impose some restriction on goats breeding?
(1 mark)
- What are the market prices for goat meat in an unregulated market (i.e. not government control on breeding applies), and what is the regulated market price, where the government begins to impose restrictions on goats breeding?
(1 mark)
- Is the regulated outcome efficient? Explain your answer.
(2 marks)
- List and briefly describe (using examples) three methods used to deal with negative externalities.
(6 marks)
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Q4. [9 Marks]
- Provide an explanation of a Dominant Strategy and a Dominated Strategy in Game Theory analysis.
(2 marks)
- Can the threat of a price war deter entry by potential competitors? What actions might a firm take to make this threat credible?
(3 marks)
- We can use game theory to look at the trade policies of Australia and India. The two countries are considering policies to open or close their import markets.
The payoff matrix is shown below.
India Open Close Australia Open 10, 10 5, 5 Close -100, 5 1, 1
Using the information shown in the payoff matrix:
- Assume that each country knows the payoff matrix and believes that the other country will act in its own interest. Does either country have a dominant strategy? What will be the equilibrium policies if each country acts rationally to maximize its welfare? Explain your answer.
(3 marks)
- Now assume that India is not certain that Australia will behave rationally. In particular, India is concerned that Australian politicians may want to penalise India even if that does not maximize Australian welfare. Would this affect India’s choice of strategy? Provide a brief explanation.
(1 mark)
EXAMINATION CONTINUES ON NEXT PAGE
Q5. [9 Marks]
- Briefly explain each of the following in no more than 50 words. Within this word limit, include one practical example.
- Adverse selection problem
- Moral hazard
- Costly to fake principle
(3 marks)
- You live in dairy country, surrounded by green fields and lots of cows. About 200 metres up the road from your house, a farmer has a dairy that milks cows. At various times during the day, the smell and noise from the cows waiting to be milked is very unpleasant. Having studied economics at university, you approach the farmer knowing:
- the farmer is a price taker in a very competitive milk industry;
- you can help the farmer determine the profit maximising amount of milk to produce for the current market price of milk;
- the farmer’s marginal cost curve is upward sloping when more milk is produced using the current milking equipment.
- Using the above information, draw one diagram showing both the demand curve for this farmer’s milk and the farmer’s private marginal cost curve. Clearly indicate on the diagram how many litres of milk the farmer should produce to maximise profit when the selling price is $P/litre.
(2 marks)
- The smells from the farm when the cows are being milked really annoy you. You convince the local council to impose a social cost on the farmer that reflects the costs associated with these smells. Redraw the diagram in part i) to now show the farmer’s social marginal cost curve if the imposed social cost is $C/litre. Then mark the socially optimal number of litres of milk the farmer should produce if the selling price remains at $P/litre and the farmer maximises profit.
(3 marks)
- Using your diagram from part ii), explain how you believe the farmer will react when the council decides to impose the social cost of $C/litre on the milk produced.
(1 mark)
END OF EXAMINATION
RUBRIC
QUALITY OF RESPONSE NO RESPONSE POOR / UNSATISFACTORY SATISFACTORY GOOD EXCELLENT Content (worth a maximum of 50% of the total points) Zero points: Student failed to submit the final paper. 20 points out of 50: The essay illustrates poor understanding of the relevant material by failing to address or incorrectly addressing the relevant content; failing to identify or inaccurately explaining/defining key concepts/ideas; ignoring or incorrectly explaining key points/claims and the reasoning behind them; and/or incorrectly or inappropriately using terminology; and elements of the response are lacking. 30 points out of 50: The essay illustrates a rudimentary understanding of the relevant material by mentioning but not full explaining the relevant content; identifying some of the key concepts/ideas though failing to fully or accurately explain many of them; using terminology, though sometimes inaccurately or inappropriately; and/or incorporating some key claims/points but failing to explain the reasoning behind them or doing so inaccurately. Elements of the required response may also be lacking. 40 points out of 50: The essay illustrates solid understanding of the relevant material by correctly addressing most of the relevant content; identifying and explaining most of the key concepts/ideas; using correct terminology; explaining the reasoning behind most of the key points/claims; and/or where necessary or useful, substantiating some points with accurate examples. The answer is complete. 50 points: The essay illustrates exemplary understanding of the relevant material by thoroughly and correctly addressing the relevant content; identifying and explaining all of the key concepts/ideas; using correct terminology explaining the reasoning behind key points/claims and substantiating, as necessary/useful, points with several accurate and illuminating examples. No aspects of the required answer are missing. Use of Sources (worth a maximum of 20% of the total points). Zero points: Student failed to include citations and/or references. Or the student failed to submit a final paper. 5 out 20 points: Sources are seldom cited to support statements and/or format of citations are not recognizable as APA 6th Edition format. There are major errors in the formation of the references and citations. And/or there is a major reliance on highly questionable. The Student fails to provide an adequate synthesis of research collected for the paper. 10 out 20 points: References to scholarly sources are occasionally given; many statements seem unsubstantiated. Frequent errors in APA 6th Edition format, leaving the reader confused about the source of the information. There are significant errors of the formation in the references and citations. And/or there is a significant use of highly questionable sources. 15 out 20 points: Credible Scholarly sources are used effectively support claims and are, for the most part, clear and fairly represented. APA 6th Edition is used with only a few minor errors. There are minor errors in reference and/or citations. And/or there is some use of questionable sources. 20 points: Credible scholarly sources are used to give compelling evidence to support claims and are clearly and fairly represented. APA 6th Edition format is used accurately and consistently. The student uses above the maximum required references in the development of the assignment. Grammar (worth maximum of 20% of total points) Zero points: Student failed to submit the final paper. 5 points out of 20: The paper does not communicate ideas/points clearly due to inappropriate use of terminology and vague language; thoughts and sentences are disjointed or incomprehensible; organization lacking; and/or numerous grammatical, spelling/punctuation errors 10 points out 20: The paper is often unclear and difficult to follow due to some inappropriate terminology and/or vague language; ideas may be fragmented, wandering and/or repetitive; poor organization; and/or some grammatical, spelling, punctuation errors 15 points out of 20: The paper is mostly clear as a result of appropriate use of terminology and minimal vagueness; no tangents and no repetition; fairly good organization; almost perfect grammar, spelling, punctuation, and word usage. 20 points: The paper is clear, concise, and a pleasure to read as a result of appropriate and precise use of terminology; total coherence of thoughts and presentation and logical organization; and the essay is error free. Structure of the Paper (worth 10% of total points) Zero points: Student failed to submit the final paper. 3 points out of 10: Student needs to develop better formatting skills. The paper omits significant structural elements required for and APA 6th edition paper. Formatting of the paper has major flaws. The paper does not conform to APA 6th edition requirements whatsoever. 5 points out of 10: Appearance of final paper demonstrates the student’s limited ability to format the paper. There are significant errors in formatting and/or the total omission of major components of an APA 6th edition paper. The can include the omission of the cover page, abstract, and page numbers. Additionally the page has major formatting issues with spacing or paragraph formation. Font size might not conform to size requirements. The student also significantly writes too large or too short of and paper 7 points out of 10: Research paper presents an above-average use of formatting skills. The paper has slight errors within the paper. This can include small errors or omissions with the cover page, abstract, page number, and headers. There could be also slight formatting issues with the document spacing or the font Additionally the paper might slightly exceed or undershoot the specific number of required written pages for the assignment. 10 points: Student provides a high-caliber, formatted paper. This includes an APA 6th edition cover page, abstract, page number, headers and is double spaced in 12’ Times Roman Font. Additionally the paper conforms to the specific number of required written pages and neither goes over or under the specified length of the paper. GET THIS PROJECT NOW BY CLICKING ON THIS LINK TO PLACE THE ORDER
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