• Question 1:
The topic which may be relevant to the question are as below (with those highlighted likely to be the most important):
– Demand and supply
– Elasticity
– Efficiency and equity
– Government actions in markets
– Global markets in action
– Public choices and public goods
– Economics of the environment
The question addresses the following learning outcomes:
• be able to apply demand and supply analysis to make a range of market related decisions
• be able to critically examine and demonstrate why it might be necessary for government to intervene in the production of goods and services and in the distribution of income
Answer the following:
At the end of the 1970s, the respective prices of fish dinners and lamb dinners in Sydney’s fine dining restaurants were approximately the same. By 1983, following a period of drought, the price of a lamb dinner in fine-dining restaurants in Sydney was twenty percent higher than the price of a fish dinner at similar restaurants. Over the same period, the ‘health industry’ had been extolling the virtues of eating fish rather than red meat and increased fish consumption had resulted in a threat to the sustainability of fishing particular species especially important to the fine-dining restaurant trade. How should the government respond?
Question 2:
The topic which may be relevant to the question are as below (with those highlighted likely to be the most important):
– Consumer choices and constraints
– Producer choices and constraints
The question addresses the following learning outcome:
• be able to make decisions that incorporate the relevant benefits and cost analysis
Answer the following:
Newspaper companies appear to be under threat of becoming irrelevant as the sale of newspapers has plummeted over the last 20 years. If you were chairman of the board of a newspaper company, how would you respond? (Hint: Consider newspapers as one of many alternative sources of accessing news)