Question 1:
You have been employed as an economist to advise the department of health and the federal government about the following issue. the minister has argued that raising the tax on alcohol is the most effective way to reduce alcohol abuse in our society. do you agree or disagree? explain why or why not. (500 words)
Question 2: Explain the difference between comparative advantage and absolute advantage. (500 words)
rationale
the question addresses the following learning outcomes.
be able to apply demand and supply analysis to make range of market related decisions.
be able to identify the critically evaluate opportunities for specialization and exchange.
be able to make decisions that incorporate relevant benefits.and cost analysis.
marking criteria
academic writing and applying economic principles and theories to labour market issues.