HC1072 Economics and International Homework- Holmes Institute
Purpose: This homework is designed to assess your level of knowledge of the key topics covered in this unit
Unit Learning Outcomes Assessed.:
o Develop a broad understanding of the principles of macro and microeconomics in an economy.
o Analyze economic environment nationally and internationally and its influence on business and national economic performance.
o Critically analyze government's fiscal and monetary policy and their influences on the economy and business in general.
o Comprehend how economies benefit from international trade.
o Synthesize theoretical and practical knowledge of economics for application in work-life situations.
The questions to be answered are;
Question I
Discuss three parameters for firms operating in an oligopoly market. Even when allowed to collude, firms in an oligopoly will choose to cheat on their agreements with the rest of the cartel. Why?
Question II
Some advocates of anti-poverty programs claim that fighting poverty is a public good. Explain what these advocates mean by classifying charity as a public good.
Why do governments tend to run programs that help the poor? Can the private sector be left to run those programs? Discuss your answer by focusing on externalities and market failure.
Question III
o Define GDP. What does it measure and track? Why do countries report GDP?
o Suppose you are given the following information about the New Zealand economy, with the values in billions of Dollars. What is the GDP of New Zealand?
Personal consumption $680
Private investment $370
Government expenditure $430
Exports $710
Imports $295
o Discuss 2 transactions that are not included in the calculation of GDP and provide an example for each.
Question IV
Choose any 2 out of the 4 types of unemployment.
o Define and discuss that type of unemployment.
o Provide an example.
o What solutions can governments try to address that type of unemployment.
Question V
Right now many economies in the world are experiencing a downturn due to the Corona Virus.
o What kind of fiscal policy can governments use to address the decline?
o What actions will be taken by the government in implementing the fiscal policy that you described in part a?
o What will be the effect on Aggregate Demand (if any) as a result of the actions taken in part b?
o What will be the effect on Aggregate Supply (if any) as a result of the actions taken in part b?
Format your homework according to the following formatting requirements:
o The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.
o The response also includes a cover page containing the title of the homework, the student's name, the course title, and the date. The cover page is not included in the required page length.
o Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.