ECO0006 Economics for Managers Diploma in Accounting 2024C/C++

Java Python ECO0006 Economics for Managers

Diploma in Accounting

July 2024

Continuous Assessment 1 (Individual Assignment: 50 marks)

30% of Final Grade

INSTRUCTIONS TO STUDENTS:

1.   This assignment consists of THREE questions and 6 pages. Answer ALL questions.

2.   Type your answers in a Word document using Times New Roman, font size 12 and submit via Canvas. Assignments submitted through other ways (e.g. through email or hardcopy to the lecturer) will not be accepted.

3.   Diagrams maybe drawn with a digital stylus or hand-drawn and uploaded as an image. All other parts of the answer that are NOT typed out will NOT BE GRADED.

4.   Open your document in Canvas after upload to ensure that the document submitted is complete and in order.

5.   Your submission should include a cover page that follows the following format:

Module Code & Module Name Diploma Name

CA 1 (Individual Assignment) Name

SIM Student Number

6.   Do not type the questions into your submission.

7.   Deadline: 24 July 2024 (Wednesday), 11 59am.

8.   Be reminded that a one-day late submission is subject to a 20%-mark deduction. Submissions that are late by more than one day will NOT be graded.

9.   CA1 is an individual assignment and should be worked upon independently. Any form. of plagiarism and/or collusion will be penalised.

Important Note:

Students caught for Plagiarism and/or Collusion will be subjected to heavy penalties.

Plagiarism & Collusion

(extracted from Student Handbook)

3.7.2 Plagiarism/Collusion

Plagiarism is theft of intellectual property.   It is a form of lying, stealing and mistreating others. Students are reminded that plagiarism is a serious offence subject to the Institute’s disciplinary procedures.

Plagiarism can mean any one of the following:

.    direct copying of phrases and/or passages without a reference and/or quotation marks;

.   paraphrasing another writer’s work in your written work without citing the reference;

.   making a direct reference to an author you have not read although you may have read about him.  The correct way is to reference the secondary source you have actually read rather than referencing the original which you have not read;

.    copying the work of another student, in part or in whole;

.   handing an assignment that has already been submitted for assessment in the same or any other course.

Please note that it is also a disciplinary offence for students to allow their work to be plagiarised by another student.

A student found guilty of any of the above offences will render the student liable for disciplinary actions which may result in the voiding and adjustments to the continuous assessment grade, and may result in expulsion from the Institute.

Question 1 (10 marks)

Use information in the passage given to answer the questions below.

NTU scientists find way to grow fish food from microbes cleared by food processing plants

SINGAPORE - Murky wastewater from washing uncooked staples like rice or soya beans may eventually become “microbial factories” to grow food for fish at an industrial scale.

The new finding has the potential to create a local sustainable source of aquaculture feed, which is typically made of ground-up fish – a finite, imported resource.

Source: www.straitstimes.com, 26 March 2024

Assume that the Singapore economy produces only soyabean milk and fish.

(a)       Explain how the  discovery of the new  fish food will affect Singapore’s production possibility curve (PPC). Use a PPC diagram to aid your explanation. (4 marks)

(b)       Explain how the Singapore economy can produce more soyabean milk if it has already    utilised all resources given a constant state of technology and productivity. Illustrate your answer on a new PPC diagram. (4 marks)

(c)       Suggest any ONE (1) reason that can cause the PPC of Singapore to shift in. (2 marks)

Question 2 (20 marks)

(a)       Use information from the passage to answer the questions below.

Venice entry fee launches: Day-trippers now have to pay to visit the Italian city at peak times

Starting on 25 April 2024, visitors will have to pay a fee of €5 to enter the fragile lagoon city. The charge will be in place on peak weekends and other days between April and mid-July.

The day-tripper fee will be in force during peak hours from 8.30 am until 4 pm, meaning visitors who come into Venice for dinner or a concert won’t have to pay.

Source: https://www.euronews.com, 25 April 2024

i)         Use the law of demand to explain the objective of the €5 entry fee. (4 marks)

ii)        To what extent will the objective of the €5 entry fee be met? Use the price elasticity of demand concept to explain your answer. (4 marks)

iii)       If the cross elasticity of demand between peak hour entry and non-peak hour entry is positive, explain the impact of the entry fee on the number of non-peak hour visitors. (4 marks)

ECO0006 Economics for Managers Diploma in Accounting 2024C/C++ (b) Use information from the passage to answer the questions below.

More expensive to drink coffee in Johor Bahru now

JOHOR BAHRU – The price of a standard cup of coffee in Johor Bahru has increased by about 70 percent in the past three years. Many operators blamed the hike on the rising cost of coffee beans, coffee powder and sugar.

Other Malaysian restaurants – are also facing high operating costs. To offset costs, many of them considered practising “shrinkflation” – reducing the portion of their dishes while maintaining prices – said Johor Indian Muslim Entrepreneurs Association secretary Hussein Ibrahim. But after several rounds of discussions, we decided against it,” he said.

“We were worried that customers would post photos of the smaller portion on social media, giving us a bad reputation.”

Source: www.straitstimes.com, 25 March 2024

i)         Identify and explain a factor of supply that caused the price of a cup of coffee to rise. Use a market diagram to aid your explanation. (4 marks)

ii)        Explain how a “bad reputation” will impact the restaurant market. Use a market diagram to aid your explanation.  (4 marks)

Question 3 (20 marks)

Labour (L)	Total Product (TP)	Marginal Product (MP)	Total Cost (TC)	Marginal Cost (MC)
0	0	-	500	-
1	(a)	200	1,500	5
2	700	500	3,000	(a)
3	1,000	(a)	5,400	8
4	1,200	200	(a)	10

(a)       Calculate the missing variables and show all working. (8 marks)

(b)       Identify the worker that causes the law of diminishing marginal returns to set in. (2 marks)

(c)       If the firm sells each box of paper carton at a price of $10, use the profit-maximising condition to find the optimal output of the firm and calculate the profit made at optimal output. Illustrate your answers on a relevant diagram. (6 marks)

(d)       Based on the profit made by the firm in part (c), explain how the market will change in the long run