Business Economics Study Material and Solved Assignments

Business Economics

Contents
INTRODUCTION...........................................................................................................................................3
QUESTION 1.................................................................................................................................................3
(a) Explain using the above examples why a monopoly is problematic for a given economy or a
government?............................................................................................................................................3
(b) Reflecting on examples from the article explain how public policy can curb Monopolies?...............4
(c) Using Cost curves explain how Monopolies make unusual profits?...................................................4
QUESTION 2.................................................................................................................................................5
(a) What are the equilibrium price and equilibrium quantity of sweet packs?.........................................5
(b) Explain what would happen to the price of a pack of sweets.............................................................5
(c) Use the above data to draw a graph with the correct labeling.............................................................6
d. Explain what is price elasticity of demand and explain why it would be important for producers to
know the price elasticity of their product and how it would affect their decision making?......................6
QUESTION 3.................................................................................................................................................6
Income Elasticity.....................................................................................................................................6
QUESTION 4.................................................................................................................................................7
Equilibrium in labor market.....................................................................................................................7
What other factors that can cause the labour supply curve to shift?.........................................................8
QUESTION 5.................................................................................................................................................9
External effects associated with Water from a uranium mine leaking into Kakadu National Park..........9
QUESTION 6.................................................................................................................................................9
a) Oil price shocks have an evident impact on the short run aggregate supply curve. With the help of a
graph demonstrate how rising oil prices affect the SRAS and explain what other factors can cause this
shift..........................................................................................................................................................9
b) Different theories attempted to explain why SRAS curves slope upwards........................................10
QUESTION 7...............................................................................................................................................11
Discuss how the bank of England can control the Money supply and interest rates and then reflect on
the above actions taken?........................................................................................................................11
Discuss briefly how do Interest rates affect the economy?....................................................................11
QUESTION 8...............................................................................................................................................12
Briefly discuss the reasons behind the global financial crisis in 2007 -2009.........................................12
Discuss the UK Policy actions to stimulate the economy to face the global financial crisis..................13

CONCLUSION.............................................................................................................................................14
REFERENCES..............................................................................................................................................15