Economics Coursework Assignment: Micro and Macro Theory

Assignment Task and Word Count

Submit a single Word document to Moodle, by the date specified on Moodle.  You should use cut & paste to copy charts you produced in Excel, into your Word document.  Each student should upload their Word file to Turnitin, to check for plagiarism.  It is not acceptable to copy & paste anything from websites; this will be checked using Turnitin.

The essay word limit (for all sections A to C combined) is 700 words (plus or minus 10%); this limit excludes the bibliography, and does not count any words in a chart such as axis labels or legend.

1.Demonstrate an understanding of microeconomic and macroeconomic theory.

2.Examine microeconomic and macroeconomic models within real world situations.

3.Evaluate the effectiveness and relevance of macroeconomic and microeconomic models to current issues.

Early Career/ World Class Professional Skills (PLOs) being assessed or developed/assessed:

Students will achieve levels of competence in those subject areas that are appropriate for the specific degree pathway they follow.

·Critically evaluate and apply the theories and techniques of economics.

·knowledge and understanding of the domestic and international business environment.

·an understanding of the role, operation and function of markets and financial institutions.

·the ability to evaluate the context in which business decisions are made and to apply economic principles to a business setting.

·the subject knowledge, understanding and skills which are relevant to a variety of career aspirations, including postgraduate study in areas related to economics and/or business.

·Develop further specialised interests in the context of contemporary issues and practice.

·The ability to apply subject knowledge to real world situations within a business environment.

·Enhancement of professionalism and employability skills.

Answer all questions in Sections A to C below.  For section C, a case-study is assigned to each student (see below), chosen by John Simister.  In the spreadsheet on Moodle for this coursework, data are provided on UK production, and UK consumption.    You are not required to find additional data for this coursework; but you are encouraged to read something about the two goods assigned to you.

Section A (micro) :

Use UK consumption data in the ‘Section A micro case study’ tab, in spreadsheet ‘Data for MMP2 coursework’ on Moodle.  Produce an XY chart for spending on two goods: ‘Libraries, archives, museums and other cultural services’ on the horizontal axis; and ‘Motion Picture, Video & TV Programme Production, Sound Recording & Music Publishing Activities & Programming and Broadcasting Activities’ on the vertical axis.  Label your chart appropriately.  Note that data are spending (rather than quantities, which are usually shown on a budget line/indifference curve diagram).  There is one dot for each year; these dots are affected by many issues, such as changing prices of good X and good Y.  Discuss whether or not we could interpret these dots as revealing an indifference curve (different points in different years reflecting changing prices of museums, cinema tickets, etc.).  Also, explain how changing household incomes are expected to affect dots in your chart.

Section B (macro) :

Outline the ‘gravity model’ of trade.  Explain the term ‘comparative advantage’, regarding international trade.  Do either of these theoretical approaches provide arguments on whether international trade is beneficial or harmful (to firms and/or to consumers)?

Section C (macro) :

Consider data in the spreadsheet ‘Data for MMP2 coursework’ on Moodle.  Identify the case study (with two goods: X and Y) assigned to you, in tab ‘macro case study for students’; locate your data in tab ‘Section C macro case studies’ in the same Excel file.  Produce a XY chart with ‘Good Y’ on the vertical axis, and ‘Good X’ on the horizontal axis: put a dot for UK consumption in each year.  On the same chart axes, add a dot for UK production in each year.  Copy your Chart to the same Word document you use for Sections A and B.  

Discuss how your chart for Section C compares with diagrams in MMP2 week 4, which show PPF and CIC lines.  Is UK self-sufficient in the two goods X and Y assigned to you, or do UK consumers rely on imports?  If Brexit reduces trade with EU, is there a risk of either good having shortages?  Discuss changes from 2006 to 2017 for both goods, in the macro case study data provided for you.