1. Use the following information to calculate the price elasticity of demand for school fees:

If P=30; Q^d =6000

If P=50; Q^d =4000

1. The elasticity is 0.5
2. The elasticity is 0.8
3. The elasticity is 1.8
4. The elasticity is 1.2

2. Which one of the following is a normative statement?

1. Price rise when the government increase the quantity of money
2. When more people find jobs, unemployment rates drop
3. The government should invest more money in research
4. When the price of a good increase, the quantity demanded goes down

3. The biggest reason people face trade-off is because

1. People tend to disagree with each other
2. Resources are scarce
3. People’s incomes increase and decrease with business cycles
4. There are too many goods and services to choose from

4. “Society should allocate more money for research” this is an example of a positive economic statement

TREU / FALSE

5. The cross-price elasticity of beef and chicken is 2, which indicates that beef and chicken are substitutes

TRUE / FALSE  

6. The opportunity cost of any item is whatever must be given up to obtain it.

TRUE / FALSE

7. In the markets for factors of production in the circular- flow diagram, households are buyers, and firms are sellers.

TRUE / FALSE

8. Regarding elasticities, the flatter the curve, the bigger the elasticity, and the smaller the elasticity. This is true:

1. Only for seller
2. Only for buyers
3. For both buyers and sellers
4. All answers are incorrect

You have $60 and have decided to invest it in the stocks of two companies: Google and Bing. The stock of Google cost $10/share and Bing stock costs $5/share. In one scenario, Google stock will be worth $30 and Bing will be worth $8. In the only other scenario, which is equally likely, Google will be worth $10/share Bing will be worth $12/share. Assuming you are risk averse, which of the following investment options yield the greatest expected utility?

(a) Spend half of your money on Google and half on Bing.

(b) All three of these options are the same.

(c) Spend all your money on Bing stock.

(d) Spend all your money on Google stock.

The correct answer is a) but i'm not sure how to get there.

Discuss the main assumptions of perfect competition and monopolistic competition.

Discuss the impact of Covid-19 on small grocery stores. Compare this with big businesses like Woolworths and Coles. Highlight the impact of the crisis using the models on market structure (hint: think of models on perfect competition, monopoly, monopolistic competition, oligopoly).

Discuss the elasticity of the following goods before and after Covid-19 (assuming that all restrictions have been eased)

1. Eating out
2. Fruit and vegetable
3. Movies
4. Cars
5. i-Phones
   please draw the curve and give examples

Even before the Boston Massacre, it had became clear to many English colonists that Britain had failed to adequately define the colonies’ relationship to the greater empire. In what ways had the colonies permanently -- and irreparably -- evolved during this period of “salutary neglect?”

Discuss the elasticity of the following goods before and after Covid-19 (assuming that all restrictions have been eased):

1. Eating out
2. Fruit and vegetable
3. Movies
4. Cars
5. i-Phones

Show the impact of Covid-19 on the Australian economy. How did the stimulus package impact the Australian economy? Explain your answer with the help of aggregate demand and supply model. What are implications of Covid-19 on the government budget.

Be sure to address each point in the question and explain your argument carefully.

4. Is a large trade deficit good or bad for a country? What is the difference between the U.S. current account deficits of the 1980s and the 1990s?

6. What is the environmental Kuznets curve? “Whether globalization has a positive or a negative impact on the environment depends on whether the scale effects and structural effects are, on balance, positive or negative.” Please describe.

In short run, how would the labor demand change?

1. price of a substitute(capital) for labor increased

2. decrease in demand for final goods

M5: Discussion on Households: Consumption-Saving Decision

For this discussion highlight how relevant are households’ inter-temporal choices in terms of interest rates, postponing consumption (patience), credit availability, income shocks, and foresight for Walgreens Pharmacy in USA.

The World Health Organization defines public health as 'the art and science of preventing disease, prolonging life and promoting health through the organized efforts of society'.

A) Explain why public health can be regarded as a public good.

B) Vaccines are one way to deal with the spread of disease; the success of vaccination programs depends on a significant proportion of the population being vaccinated. Despite this, some of the population choose not to be vaccinated. How would economists explain this behaviour?

Explain the welfare implications of such behaviour, and suggest a way the government could intervene in the market for vaccinations to achieve a more efficient outcome.

Alcohol related harm (including health effects on the drinkers, and hospital admissions - largely of women due to domestic violence) has long been a problem in the Northern Territory (NT). Previous attempts to address this issue in the NT have included bans on sales of wine and fortified wine in casks and large bottles in 2006, and removing the cheapest forms of alcohol (bulk wine and bulk fortified wine) from the market. A study into the effectiveness of these policies estimated they increased the wholesale price of a standard drink from $0.80 to $1.10. While some people turned to other types of alcohol such as more expensive full strength beer, the study claimed that the decline in cheap alcohol more than offset this, resulting in an overall reduction in alcohol consumption from around 24 standard drinks for every person aged 15 years and over per week, to around 20 standard drinks per week. Alcohol related harm decreased significantly as a result of this reduction in alcohol consumption, and the study concluded: “while the causes of family and community violence are complex, bans on cheap alcohol are especially effective in reducing the number of Aboriginal women subjected to assault.”

A) Use the numbers given above to calculate the price elasticity of demand for a standard drink in the Northern Territory for the original price increase, showing your workings. Interpret your answer; does your answer indicate that demand for a standard drink in the NT is elastic or inelastic? Explain what this means with respect to the responsiveness of drinkers to price increases, and suggest a reason (or reasons) for this level of elasticity. In October 2018 the Northern Territory government decided to put a price floor of $1.30 on a standard drink.

B) Will a price floor have a greater or smaller effect on the quantity of standard drinks consumed in the NT compared to if demand was more elastic than you found in answer to part (A)? Explain your answer.

C) Suggest an alternative policy that could result in a similar reduction of alcohol consumption. Explain your answer.