Question BUS102 Introduction to Microeconomics

05 Jun Question BUS102 Introduction to Microeconomics

Question
BUS102 Introduction to Microeconomics

Notes and Guidelines for Group Assignment

Due 14 May 2014

Topic

* Four Problem-Solving Questions that require written answers

1. General information

1.1 This group assignment worth 20 marks of total assessment and is to be submitted through “Moodle” by 11.59pm, Wednesday 14 May 2014.

· There are 4 questions and each question will be marked out of 10 marks, consisting total of 40 marks. Then the marks will be converted to total of 20 marks scale for 20 per cent of your total course assessment.

· The marks that will be uploaded in Moodle later will be out of 20 marks (that is, 20 per cent of total assessment).

· Late submission by 1 day will attract loss of 2 marks (10 per cent) each day until 5.00pm Friday 16 May 2014.

· Assignment submitted after 5.00pm Friday 16 May 2014 will not be accepted and marked zero.

1.2 Each group should form a group of four (4) students. The number can be varied only with lecturer’s permission. One-person or two-people group assignment is NOT allowed.

1.3 Each student name in the group and student ID number must be clearly printed on the Assignment Cover Sheet and at the last page of the assignment paper.

1.4 In the case of one-person (or two-people group) assignment, it will be marked out of 12 (15), not 20. This means a loss of 8 (5) marks for not forming a proper group.

1.5 You need to follow an appropriate format explained below. Not following appropriate format will cause loss of some marks.

· All written answers must be clearly typed and printed. Hand-written answers will NOT be accepted.

· All assignment questions and sub-questions should be typed in order at the heading.

· Separate each main question by different page. For example, if Question 1 (a) (b) (c) and (d) are answered on pages 1-2, then start Question 2 on page 3, etc.

1.6 The answers should be written clearly and concisely with the main points only, and avoid irrelevant points. In your answers,

· You should analyse, explain and show how and why you draw your answers. Providing just answers without explanation will not receive full marks.

· You should also include appropriate and relevant diagrams, charts and tables together in your explanation. Draw them using Microsoft Word/Excel/Power Point tools, NOT hand drawn.

1.7 Copying the assignment contents from other group(s) is a serious violation of copy right. It will be penalized and attract a VERY heavy loss of marks.

· Please remember that it is not difficult to identify the contents that are copied from other group(s). Write the answers in your own English words.

1.8 Each group needs to have a group coordinator, who will submit only one copy of the assignment for the group through “Moodle” in MS Word Doc(x) file format, not in PDF format.

· Indicate the group coordinator when you type student names on the Assignment Cover Sheet.

· Each group must also submit one HARD COPY of the assignment to Librarian in KOI.

1.9 Make sure all group members discuss and work together, and EVERYBODY in the group MUST read and check the assignment before submission, once completed!!

2. Assignment Questions

Question 1 – 10 marks

Part A

Ethanol
(barrels per day)

Food crops
(tonnes per day)

70

0

64

1

54

2

40

3

22

4

0

5

Australia produces ethanol from sugar cane, and the land used to grow sugar cane is used to grow food crops. Suppose that Australia’s production possibilities for ethanol and food crops are as in the table.
(a) If Australia increases its production of ethanol from 40 barrels per day to 54 barrels per day, what is the opportunity cost of an additional barrel of ethanol? (1 mark)

(b) Does Australia face an increasing opportunity cost of ethanol? What feature of Australia’s PPF illustrates increasing opportunity cost? (1 mark)

Part B