Part One
Attempt all five questions. Each question is worth 2 marks ( maximum 150 words each)
- Name the two market forces which mean that “price is constantly tending towards the equilibrium price”.
Please answer true of false to each of the following:
The supply curve of a normal good will shift left as a result of:
a) productivity improvements b) increases in the cost of production
- Calculate the price elasticity of demand using the Arc Elasticity formula.
The price of a good is 30c and quantity demanded is 100 units, the price changes to 25c and quantity demanded changes to 200 units.
- Please answer true of false to each of the following:
In the circular flow of income, when injections are greater than withdrawals
a) unemployment will rise b) the level of expenditure will fall
E) List four trade barriers that a country can theoretically apply to imported
goods.
What effect does a tariff barrier have when applied to a normal good in
terms of price and quantity demanded?
Part Two
Answer ANY 3 Questions from 6. Each question is worth 10 marks: (maximum 300 words each)
| Brief Guidelines: Written assignment. Ensure to number your answers. Part One Attempt all five questions. Each question is worth 2 marks ( maximum 150 words each) Name the two market forces which mean that “price is constantly tending towards the equilibrium price”. Please answer true of false to each of the following: The supply curve of a normal good will shift left as a result of: a) productivity improvements b) increases in the cost of production Calculate the price elasticity of demand using the Arc Elasticity formula. The price of a good is 30c and quantity demanded is 100 units, the price changes to 25c and quantity demanded changes to 200 units. Please answer true of false to each of the following: In the circular flow of income, when injections are greater than withdrawals a) unemployment will rise b) the level of expenditure will fall E) List four trade barriers that a country can theoretically apply to imported goods What effect does a tariff barrier have when applied to a normal good in terms of price and quantity demanded? Part Two Answer ANY 3 Questions from 6. Each question is worth 10 marks: (maximum 300 words each) Q1 Expenditure method under National Income Consumption expenditure 11,782.7 Government expenditure 3,576.6 Investment expenditure 3,337.8 Indirect taxes 2,875 Subsidies 1,457 Exports 11,785.1 Imports 10,467.6 Net factor income from the rest of the world -1,957.1 Depreciation 1,234.5 Q1 (a) From the above information find:- Gross Domestic Product at current market prices (3marks) Gross National Product at current market prices (3marks) Net National Product at factor cost ( national income) (3marks) Q1 (b) Why when calculating national income must “transfer payments” be excluded? (1 mark) Q2 Price € Quantity Demanded (millions per week) Quantity Supplied (millions per week) 8 6 20 7 8 18 6 10 14 5 12 12 4 14 10 3 16 8 2 18 6 1 20 Draw the demand and supply curves to represent the data in the table above (2marks) What is the equilibrium price and quantity? (2marks) At a price of €6 the market exhibits excess demand or excess supply? ( 1mark) ( d ) (i) Explain using a diagram what would happen if demand was increased by 10m units at each price. ( 3 marks ) ( d ) (ii) What is the new equilibrium price and quantity? (2marks) Q3 (a) Which economic system does Ireland have? (1mark ) (b) In a mixed economic system, describe any 3 areas of government involvement (3marks) In terms of the factors of production, describe three economic freedoms that individuals have in capitalist/market economic system that you typically do not have in a centrally planned economic system ( 3marks) Explain any three disadvantages of a centrally planned economic system (1.5marks) Which economic system is most efficient in its use of resources and why?(1.5marks) Q4 a) Briefly describe monetary policy.(1mark) b) Examine the European Central Bank’s ( ECB) response to the coronavirus pandemic.(4marks) c) Briefly describe fiscal policy.(1mark) d) Examine Ireland’s fiscal policy response to the coronavirus pandemic? (4marks) Q5 ( a ) Why is international trade important for the country of Ireland (3marks) ( b ) How do Irish firms in general benefit from international trade. (2marks) ( c ) Make an argument for free trade over trade protection. ( 5marks) Q6. “The government should not interfere in an economy”. Describe this argument.(4 marks) Describe the role of firms in the Irish economy (3marks) Minimum wage in Ireland is an example of government intervention in the economy. Explain with a diagram how this works in the market for labour. (3 marks) Assessment Criteria: Part one questions: You will be assessed on your accuracy of your answer. Part Two questions: You will be assessed on accuracy and understanding in your answer. Please provide references(in-text) and bibliography if used. Submissions: Please upload this Special Assignment to the designated upload point on Moodle by due date. |