Economics Coursework Assignment - Macroeconomics and Microeconomics

This economics coursework assignment addresses several key macroeconomic and microeconomic concepts. The assignment begins with an analysis of monopolies, discussing their impact on economies, the role of public policy in curbing them, and how they generate unusual profits. It then delves into price elasticity of demand, including calculations and implications for producers. Further questions explore income elasticity, the factors influencing labor supply, and the effects of immigration. The assignment also examines external effects associated with environmental issues, specifically water contamination from uranium mining in Kakadu National Park, and proposes policy solutions. Finally, the coursework analyzes the impact of oil price shocks on the short-run aggregate supply (SRAS) curve and explains theories behind the upward slope of the SRAS curve. The assignment covers a range of topics, including monopolies, market dynamics, labor economics, environmental economics, and macroeconomic principles.

Coursework in Economics

Table of Contents
Question one....................................................................................................................................3
Question two....................................................................................................................................4
Question three..................................................................................................................................5
Question four...................................................................................................................................6
Question five....................................................................................................................................7
Question six.....................................................................................................................................8
Question seven.................................................................................................................................9
Question eight................................................................................................................................10
REFERENCES..............................................................................................................................11

Question one
A. Monopoly is problematic for a given economy or a government?
Since monopolies are sole providers, those who can charge anything they want. This is
referred to as price fixing. Since they know customers have no alternative, they will do anything
irrespective of demand. This is particularly true when economic activity is inelastic. When
individuals will not have a degree of leeway, this happens. Monopolies can not only lift
premiums, but they can also have inferior goods. This has occurred in some urban areas, where
food stores recognise that disadvantaged people have little options. A confidence will be formed
by a collective of firms to set rates low enough to push rivals outside from business. They would
increase premiums until they got a control on the business to recoup their profits. It would have a
commanding role as the web browser for desktop computers, which it used to bully a retailer,
Information. This also compelled machine manufacturers to hold back superior technologies
(Shoutong and Bureau, 2017).
B. Article explain how public policy can curb Monopolies.
This idea is often stressed as a possible economic danger to monopolies, as well as the
economic rationale is simple to demonstrate. Consider a supply and demand graph, in which
supply and demand converge to provide a reasonable price and total quantity. Assume that one
firm has complete ownership of the supply chain and will manipulate prices around the demand
curve to obtain increased costs than even the supply would allow. This enables monopoly power
to charge buyers who are more likely to pay a premium price while only taxing people who are
less prepared to pay regular rates. This really is unfair to customers, who would be willing to pay
whatever the price is and there are no other choices.
C. Cost curves explain how Monopolies make unusual profits.

The company will measure overall sales using the points upon on demand curve D, and
afterwards measure its monopoly firm regarding the total revenue. The profit-maximizing
amount will be reached when MR = MC, or even as soon as marginal product begin to outweigh
marginal income.
Question two
A)
16−2P=2+5P−2+2P=−2+2P14=7P
B) If sweets were 50 cents a bag, describe the situation in the market for sweets and explain what
would happen to the price of a pack of sweets.
C) Draw a graph.

D) 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.
The elasticity value will be strong, or supply would have been comparatively elastic,
place at a single end of something like the pricing mechanism, in which we have a huge
percentage quantity of money required more than a small quantity sold. So if the prices and
quantities demanded adjust the very same, the price rises will be much lower as well as the cost
is so much smaller at the other side of a pricing mechanism, because the market price rises is
smaller as well as the rise in income is much greater. That implies that have a smaller base case
over a big denominator only at base of the graph, resulting in a much smaller, or negligible,
elasticity index. The resilience of the quantity required or supplied of a product to a change in its
price is measured by price elasticity. It's calculated by dividing the percentage difference in
money supply (or supplied) by change in price (Song, Amelin, Wang and Saleem, 2019).
Question three
A) Judy’s income elasticity of demand for concert tickets.

% Change in Income: = (12000-10000) * 100 = (2000/11000) *100 = 18.18
(12000+10000)/2
Income Elasticity of Demand = % Change in Quantity demanded = +(10)/ +(18.18) = + 0.55%
Change in Income.
The value of Income Elasticity is Inelastic, but also because the indication is positive,
concerts will be in average condition.
B). Judy’s income elasticity for bus rides.
% Change in Income: = (8000-5000) * 100 = (3000/8000) *100 = 37.5
(12000+10000)/2
Income Elasticity of Demand = % Change in Quantity demanded = + (10)/ +(18.18) = + 0.55%
Change in Income.
Question four
A) Demonstrate how the supply of labour in the U.S. is affected by the increase in the labour
force resulting from Mexican immigrants.
The talents of refugees, the skills of local immigrants, and the dynamics of the host economy
all play a role in the effects of immigration on the labour market. They are both expected to vary
in the long and short term, depending on how well the environment and labour consumption
respond to increased labour supply. Immigration has an effect on labour supply because it
expands the pool of jobs in some industries. Around the same period, as market appetite for those
items and services expands, immigration is expected to raise labour demand. Such that,
immigration will also improve competition for current workers and generate new ones in some
industry categories. Several trials have indicated that the outcomes of high vs. low skilled
workers are different, much as they are with unemployment rate.
For instance, since immigrants often migrate to areas with high labour demand, immigration may
really be a reason and a result of wage and job shifts. This makes determining causality
impossible. Another issue is that foreign immigrants into a given region could lead some staff to
depart and move to other areas of the world or even abroad. When this occurs, the results of the
employment market in one state dissipate across the world, making accurate calculation by local
workforce research more complicated. A fourth statistical problem stems from the poor accuracy
of services on migrants, particularly remarkable subtypes of immigration, which is frequently
focused on limited observations and therefore subject to substantial sampling error (Song and

Zhang, 2020). To resolve these questions, empirical analysis has used a variety of approaches
and econometric tools, but nothing of them who are optimal, and certain problems and
limitations still remain.
B). Factors that can cause the labour supply curve to shift.
The labour force can be significantly impacted by migration. Migrants are typically of
labour force, but although migration increases labour supply at all wage levels, it has a greater
impact on demand at higher wage levels. This is because workers typically come from low-
income countries, where real incomes are frequently well below the UK low wages.
 Non-monetary (non-pecuniary) incentives, such as improvements in work practices,
employment stability, annual leave, advancement chances, and other psychological
effects of jobs, affect policies to raise or reduce aggregate demand, in addition to pay
rates. Increases in these incentives would cause the worker supply curve to change. The
labour supply curve would be shifted right as these gains improve.
 Each business is a pay giver in a reasonably dynamic labour force, where the pay rate is
set by the company rather than by the particular firm. This assumes that the economy will
determine the ultimate optimum wage, and the quantity of workers to each particular
company will be completely elastic only at market cost.
 Since there are a limited number of trained accountants, production is inelastic. Since the
number of actually available candidates for a position like fast-food manager is a large
proportion of the working population, availability is even more fluid.
 Supply would be relatively elastic if specific credentials are difficult to obtain. Even if
salaries for economist’s increased, the availability would have been inelastic, and
obtaining a degree might take many years. If several jobs in a given place, such as fruit
pickers, were deemed unacceptable, the availability of substitutes would be
comparatively higher.
Question five
Q. Do you think that there would be external effects associated with Water from a uranium
mine leaking into Kakadu National Park? If so, what would be the nature of the external
effects? Can you think of policies that might deal with each external effect (that is, improve
social wellbeing)?

The environmental issues of nuclear energy are similar to that of other polymetallic
mining in several ways.
ISO 14001 qualification is held by the majority of uranium mines in Australia and
Canada.
In addition to the aforementioned pollution controls of every mine, the radioactivity
involved from uranium ore necessitates some study the main that is discussed below:
The radioactive material of uranium is very mild, similar to that of granite. Almost half of the
contaminated waste again from ore's derived minerals winds up in the drainage system. Uranium
mining is similar to other types of mining in several ways. Prior to starting a project, it must
obtain regulatory permits and meet all appropriate regulatory, security, and workplace health
requirements. These are increasingly regulated by global standards and subject to external audits.
Open pits or blades and drive are drilled after approval, and plastic waste and overwhelm are
dumped in constructed piles. Ore mining tailings must be stored in engineered ponds or
submerged in water. Finally, at the end of the meeting, the entire site should be refurbished.
Meanwhile, poisoning of the air and water should be prevented (Yi, Shen and Lei, 2019).
This study shows how aluminum smelting can be done in a manner that benefits employees,
the community, as well as the community by contrasting existing best practises with old
practises. Innovative, new mining techniques, together with tightly applied regulatory
requirements, are aimed at minimising historical errors made especially during the company's
ancient past, while optimising uranium output was the primary operational consideration.” The
World Nuclear Association released an internationally standardised monitoring method in 2017
to better explain the success of uranium mining and manufacturing sites in terms of sustainable
growth. While uranium isn't really hazardous in and of itself, the uranium that is extracted,
especially unless it is very elevated, though in some Canadian mines, is treated with caution for
work health & safety purposes. There are large amounts of lifeless tundra and overwhelm waste
left over from open-cut mines. This is located near the hole and then either used for recovery or
moulded and replanted.
Question six
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.

Oil exporters, such as OPEC countries, will benefit from higher oil prices because their current
account balance will increase. The current bank status of commodity exporters would deteriorate
as a result (e.g. Germany, China). Oil exporters would have more foreign exchange deposits,
which they will use to buy properties in other countries. Arab countries, for example, such as
Saudi Arabia, are major buyers of US securities. A significant increase in oil prices would lead to
inflation. It is because transportation rates are expected to increase, resulting in higher prices for
a variety of commodities. This would be cost-push inflation, as opposed to inflation triggered by
increased consumer spending or excessive expansion. Consumers' net spending would decrease.
They face greater transportation costs without the benefit of growing incomes. Rising oil prices
can stifle economic growth, which is especially problematic if consumer spending is weak. Oil
relatively inelastic throughout the near term. This means that a price increase only triggers a
minor drop in production. Since customers require oil-based goods, such as their vehicle,
demand is highly elastic. Rising oil prices, on the other hand, would enable consumers to
broaden their usage (e.g., by purchasing hydrogen-powered cars). As a result, demand can
become more price stable and predictable (Yin, 2019).
B) Different theories attempted to explain why SRAS curves slope upwards. Identify and
explain these theories explaining what they have in common.
The short-run allocative efficiency curve is vertical, as per the misconceptions hypothesis, so
improvements in the average price trend will momentarily confuse suppliers on what has been
occurring in their private insurance. As a result, when the market level decreases, many
businesses will find a drop in the price of the products and services they supply and cut demand
because they feel their industry is no longer viable. When the average price level decreases,
though, the costs of other goods (such as raw materials) collapse with it. That is to say, the
market cost of a manufactures' goods does not have to fall, and there is no need to cut demand.
Question seven
A) Discuss how the bank of England can control the Money supply and interest rates and
then reflect on the above actions taken?
This checklist was established over many months with its participants with the aim of
reaching widespread consensus on a set of issues and metrics that could be used to demonstrate
producers' commitment to sustainable development success. To assist customers and suppliers in

using the checklist, accompanying instructions were planned. The informal guide was created to
correspond to the Association's position paper on mining industry standards.
B). briefly how do Interest rates affect the economy.
In the long term, the aggregate demand curve is integration of advanced; but, in the short
run, it slopes upward. The sticky pay hypothesis, the sticky price theory, and the misconceptions
hypothesis are various assumptions that attempt to understand why producers perform differently
throughout the short term than they are doing in the longer term. An upward gradient of the
short-run aggregate supply is due towards nominal wages being unable to respond to shifts in the
overall price level, as per the stubborn wage hypothesis. According to the sticky market
principle, the curve peaks upward and certain products & services' costs take a long time to
respond to price increases.
Question eight
A) Briefly discuss the reasons behind the global financial crisis in 2007 -2009.
The negative outcomes for most jobs but unfavourable effects for the lowest paid; they found
that somehow a 1% rise in the proportion of immigrants to non-migrants results in a 0.6 percent
drop in pay for people in the fifth percentile as well as a 0.5 percent decline in wages for people
in the 10th percentile. Another research focused on wage impacts at the worker level showed that
a 1% increasing share of immigrants decreased real earnings in the non-skilled and semi-skilled
construction industry by around 0.2 percent. It really is necessary to highlight that analysing the
impact of immigration on the employment market poses a variety of statistical difficulties.
B) UK Policy actions to stimulate the economy to face the global financial crisis.
The first non - communicable diseases at Ranger mines was developed with a waste to mine
proportion of slightly more than 2:1. Uranium compounds, on the other hand, are often
associated with more radioactive elements throughout the ore, like radium and hydrogen
sulphide, that result from uranium's nuclear fission across course of thousands of years. While
uranium is not hazardous in itself, the ore that is extracted, particularly unless it is very elevated,
and that in some North American mines, is treated with caution for industrial health reasons
(Zheng, Li, Wang and Zhang, 2017).

REFERENCES
Books and Journals
Shoutong, L. and Bureau, L.P.S., 2017. Study on the Construction of Operation Management
System of Emergency Management System. Henan Science and Technology, p.05.
Song, M., Amelin, M., Wang, X. and Saleem, A., 2019. Planning and operation models for EV
sharing community in spot and balancing market. IEEE Transactions on Smart
Grid, 10(6), pp.6248-6258.
Song, Z. and Zhang, F., 2020. Research on Operation Management Mode for Intercity High-
Speed Railway of Urban Agglomeration: Taking Beijing-Tianjin-Hebei Urban
Agglomeration as an Example. In CICTP 2020 (pp. 4657-4666).
Yi, Q., Shen, Z. and Lei, D., 2019, February. Research on Evaluation of Operation Management
Efficiency of Listed Companies in China’s Financial Trust Industry Based on SFA Model.
In International Conference on Application of Intelligent Systems in Multi-modal
Information Analytics (pp. 982-989). Springer, Cham.
Yin, J., 2019. Over-Leaping the Middle Income Trap and the Innovation of Rural Production-
Operation-Management System. In China’s Reform to Overleap the Middle-Income
Trap (pp. 79-89). Springer, Singapore.
Zheng, X.K., Li, K., Wang, R. and Zhang, T., 2017, April. Operation management of a hybrid
renewable energy systems base on multi-objective optimal under uncertainties. In 2017
IEEE International Conference on Energy Internet (ICEI) (pp. 59-64). IEEE.