Applying Microeconomic and Macroeconomic Theory to Business Decisions

Economic concepts: scarcity, trade-off, comparative advantage, margins, incentives etc

Apply microeconomic and macroeconomic theory to understanding the behaviour of consumers, business, governments and other organizations. Key Elements being assessed: Economics: foundations and models and choices and trade-offs Economic concepts: scarcity, trade-off, comparative advantage, margins, incentives etc Role of models in the analysis and interpretation of economic data Production possibility frontier to analyse trade-offs Demand and supply and production and costs Variables that affect demand and supply Equilibrium in the marketplace Price elasticity Technological changes and its impact on supply and demand Learning outcome 2 (5%) Assess the impacts of economic activity on business, society, and the natural environment to inform business decisions applying economic tools and concepts. Key Elements being assessed: Market structures: monopoly and oligopoly Definitions, causes and effects of monopoly and oligopoly Market failure, government intervention and input costs Concepts of consumer and producer surplus, economic efficiency Submission Requirements Electronic copy submitted through Canvas before 23.59 pm 19 February 2021. HOW TO SUBMIT ASSIGNMENTS Assignment Requirements ICL Assessment Instructions Student Declaration By submitting this assessment you acknowledge that: I have read and understood this assessment fully including the sections HOW TO SUBMIT ASSIGNMENTS and the ICL Assessment Instructions I understand that my submission to Canvas is my official submission and that handing in an assignment by any other method does not count as an official submission I confirm that all work completed for this assessment is my own work and has been produced without assistance from anyone else. I confirm that this assignment has not, in whole or in part, been submitted for assessment in any other subject or course of study at ICL Business School, or at any other educational institution. Assessment Task(s): All students note the following conditions: Each student must choose one country (to represent the government and economy) approved by the lecturer before he/she starts writing the report. Students must select different countries for this report. This ensures that we do not have plagiarism where students copy someone else’s assignment topic. Similarly, each student must select a product that he/she usually buys approved by the lecturer before he/she starts writing the report. Students must conduct research to write this report. This assessment is designed to use actual data from the secondary sources and hypothetical data based on actual price of a selected product bought by each student. The objectives of the assignment are to develop: Intellectual rigour: a commitment to excellence in all scholarly and intellectual activities, including critical judgment Knowledge of a discipline: command of a discipline to enable a smooth transition and contribution to professional and community settings Creativity: an ability to develop creative and effective responses to intellectual, professional and social challenges Students must write the assignment using the following structure: 1. Executive summary (5 marks) 2. Introduction (5 marks) 3. Application of economic concepts and decision making (a) Consumer behavior based on three fundamental economic problems (13.5 marks) (b) Business/firm’s behaviour in producing the selected product (13.5 marks) (c) Buyer and seller interaction: market equilibrium (8 marks) (d) Economy/government’s behavior (10 marks) 4. Conclusion (5 marks)