ECON111 MICROECONOMIC PRINCIPLES S2 2018: ECON111 Assignment Questions

ECON111 MICROECONOMIC PRINCIPLES S2 2018: ECON111 Assignment Questions 150 150 Affordable Capstone Projects Written from Scratch

ECON111 Assignment Questions: MICROECONOMIC PRINCIPLES S2 2018
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Total Marks 100 – Weighting: 25%
The Individual Assignment relates to the following Learning Outcomes:
 Recognise and communicate the importance of microeconomics in the Australian
and global economies
 Knowledge and understanding: Recognise how principles of microeconomics are
relevant in understanding decision-making by individuals, business and government
 Problem solving: Apply theoretical understanding of microeconomics to real life
economic problems
 Ethics: Demonstrate ability to evaluate economic theory and real world applications
in the context of equity considerations
These learning outcomes support development of the following Graduate Capabilities:
 Engaged and Ethical Local and Global citizens
 Discipline Specific Knowledge and Skills
 Problem Solving and Research Capability
 Effective Communication
 The assignment must be submitted via Turnitin by 11am on Tuesday 2 October 2018.
The submission link is available on iLearn under the “Assignment” tab from 11am on
Friday September 28.
 No extensions will be granted, except in cases where an application for “Special
Consideration” has been made and approved.
 Late submission will incur a penalty of 20% per day of total available marks.
 Submissions will not be accepted beyond 96 hours past submission deadline.
 Students can submit to Turnitin more than once, as long as this is before the deadline.
However, it is your last submission that will be saved and graded.
 Note that, if you do submit more than once, your new originality report may not be
available for up to 24 hours.
 Avoid plagiarism. The consequence of plagiarism is a zero mark.
 You may work with other students at the preparatory stage. However, the final
version of the assignment should be written in your own words.
 Note that Turnitin will compare your submission against others’ as well as internet
sources and any submission you have made in previous sessions in any unit.
 Get familiarised with the academic honesty policy:

 All questions involving calculations must show all steps involved to arrive at your
 All questions requiring a written response must include all relevant reasoning.
 All written answers are typed using a Word Processor (e.g. MS Word). You cannot
submit a hand written document.
 All answers are presented in the same sequence as the questions in the assignment.
 All answers are written in full sentences and in clear language.
 All answers are proofread and grammatical errors and typos are minimised.
 The answers are written under the word limit, where applicable.
 All diagrams are drawn clearly and fully labelled, as I am aware that poorly drawn
diagrams reflect poor communication, which may result in loss of marks.
 If I am using computer-drawn diagrams, e.g. MS Word, PowerPoint, OneNote, I have
checked that they are: 1. Not distorted, and; 2. Have been properly inserted into the
master document (including being inserted alongside the correct question number).
All such diagrams should be ½ an A4 page (or more, but not less) in size prior to
 If I am using hand-drawn diagrams, which have been scanned or inserted as photos, I
have checked that they are 1. Clear images on my smart phone or device prior to
insertion, 2. That these images do not have shadowing or angle distortions, and; 3.
That they have been properly inserted into the master document as image files. All
such diagrams should be ½ an A4 page (or more, but not less) in size prior to
 The master document is saved as a pdf file of less than 40MB.
 If you try to submit, and get a message that reads “Error M14:11” or similar, then you
have tried to upload a Word document. Save as a pdf and re-submit.
 I have double-checked whether the document was properly uploaded.
 I have seen my originality report.
 I have received the Turnitin receipt via email.
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ECON111 Assignment Questions
Q1. (2 marks) From the perspective of economic theory, what is a minimum wage and when
is it binding?
Q2. (2 marks) According to the Fair Work Commission’s National Minimum Wage Order for
2018 (available on it’s website), what is the national minimum wage per hour in Australia
for an adult worker?
The following information will be used for the remaining 10 questions.
Assume that the market for unskilled labour in Australia is a competitive market and can be
described by the following demand and supply curves:
D = 1,500,000 – 60,000W
S = 120,000W – 1,200,000
Where W = wage rate per hour for labour, D is hours of labour demanded and S is hours of labour
Q3. (10 marks) Calculate the equilibrium wage rate and quantity of unskilled labour
employed. Draw a diagram to illustrate your answer.
Q 4. (8 marks) Show on your diagram and calculate the size of the:
(i) Consumer/firm surplus (3 marks)
(ii) Producer/worker surplus (3 marks)
(iii) Total Surplus (2 marks)
Q5. (6 marks) Suppose that the Fair Work Commission imposes a minimum wage of $19 per
(i) How many hours of employment are exchanged in the market? (2 marks)
(ii) Calculate the size of the surplus or shortage of hours created by the imposition of the
minimum wage. (4 marks)
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Q6. (12 marks) Assume that a minimum wage of $19.00 per hour is introduced. However,
there is no change in either the Supply or Demand equations used in Question 3.
Draw a new diagram and label the minimum wage. This diagram should be at least ½ A4
page in size. (1 mark)
Calculate and show on the diagram:
i) Consumer/firm surplus (3 marks)
ii) Producer/worker surplus (3 marks)
iii) Total surplus (1 mark)
iv) Resources lost in job search (2 marks)
v) Deadweight loss (2 marks)
Q7. (6 marks) In answering the following questions, base your responses on what has
happened to the relevant surplus.
Following the introduction of the minimum wage explain if:
i) Firms are better off? (2 marks)
ii) Workers are better off? (2 marks)
iii) Society is better off? (2 marks)
Q8. (4 marks) Now assume that the resources lost in job search calculated in Q6 are actually
captured by producers (workers). In other words, now assume that no resources at all are
lost in job search activity.
Re-calculate the following:
i) Consumer/firm surplus (1 mark)
ii) Producer/worker surplus (1 mark)
iii) Total surplus (1 mark)
iv) Deadweight loss. (1 mark)

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Q9. (5 marks) Based on your re-calculations in Q8, do your conclusions reported in Q7
Q10. (15 marks) Consider your responses in Q7 and Q9. From a consequentialist perspective
that has as its objective allocative efficiency, is the introduction of a minimum wage ethically
justified? Explain. [Maximum 200 words]
Q11. (15 marks) Consider your responses in Q7 and Q9. From a consequentialist perspective
that has as its objective improving the standard of living of unskilled workers, is the
introduction of a minimum wage ethically justified? Explain. [Maximum 200 words]
Q12. (15 marks) From a deontological ethical framework, construct an argument either in
favour of a minimum wage or against it. [Maximum 200 words]


Here is a preview of Q3