ECF5953 Semester 2 2015 Assignments
Due date: Week 5 tutorial
Details of task:
Write an essay that explains your views on
(1) what economics is and
(2) how you may use economics in your future career and/or your daily life.
A recommended ref
Practice Exam Paper
Disclaim: This practice exam paper is for practice only and may not be used as a reference for the
2015 semester 2 final exam
Question 1 (20 marks)
A company is considering building a bridge across a river. The bridge
ECF9530 Semester 2 2015
The company that you manage has invested $5 million in developing a new product, but the
development is not quite finished. At a recent meeting, your salespeople report that the
introduction of comp
Week 7: Frontiers of
A moral hazard is the tendency of a person who
is imperfectly monitored to engage in dishonest
or otherwise undesirable behaviour.
For example, the moral-hazard p
Markets and Welfare
What will we discuss?
Concepts in welfare economics
Why is free market equilibrium efficient?
Use the concepts of consumer surplus and
producer surplus to study the welfare effects of
Effects of government policy on
demand and supply
What will we discuss?
The price elasticity of demand
its meaning, determinants and calculation
its relationship with total revenue
The meaning and calculation of other elasticities
Chapter 24 Problems and Applications 1
a Household expenditure increases, i.e. consumption increases.
b New housing is part of investment, hence investment increases.
c A new car is part of consumption, hence consumption increases, while invest
Week 4 Externalities, public goods and
Department of Economics, Monash University
Externality is the uncompensated impact of
one persons actions on the wellbeing of a
Chapter 13 Problems and Applications 2
a The opportunity cost of something is what must be forgone to acquire it.
b The opportunity cost is $550,000, consisting of $500,000 to rent the store and buy the stock
and a $50,000 opportunity cost, sin
Chapter 7 Problems and Applications 11
a Figure 7.16 illustrates the effect of the drought. The supply curve shifts to the left, leading
to a rise in the equilibrium price from P1 to P2 and a decline in the equilibrium quantity from
Q1 to Q2.
Microeconomics: scarcity; economic choice; economic systems; economic ideology; demand and supply
analysis; consumer behaviour and elasticity; costs of production and profit maximisation; perfect
competition and monopoly. Macroe