ECONOMIC PRINCIPLES AND THEIR APPLICATIONS IN BUSINESS

ASSIGNMENT QUESTIONS

ASSIGNMENT TOPICS #1:

(8 marks)

The following is some information about the supply of and demand for small
sailing boats (of a standard design)

Price ($) Quantity Demanded Quantity Supplied

5,000 5000 3000
7,000 4500 3500
9,000 4000 3500
11,000 3500 3500
13,000 3000 4500
15,000 2500 5000
17,000 2000 6000

1) Draw an accurate demand and supply diagram to illustrate this data

2) What is the equilibrium price and quantity traded?
3) Suppose a subsidy of $2,000 per boat was given to all the original firms
supplying small sailing boats. Add to your demand and supply diagram from
part (a) to illustrate the effect of this on the market.
4) What is the new equilibrium market price and quantity traded?

(2 marks each, total of 8 marks)

ASSIGNMENT TOPICS #2:

(3 marks each, total of 12 marks)

Research and then define/explain following and give a specific examples:

1) Comparative Advantage
2) 5 Types of Economic Systems (two of which are Market Economy and
Planned Economy)
3) Stages of Economic Integration
4) Components of National Income Withdrawals and National Income
Injections

Total of 20 marks

Due date : 1 week after last class session

1
NOTES FOR ASSIGNMENT SUBMISSION

PLEASE REFER TO COURSE OUTLINE ON WARNING FOR ACADEMIC

MISCONDUCT: PLAGIARISM WARNING

1. The assignment should be typed in a typed format in ‘Times New

Roman’ font, size 12 with 1.5 line spacing and page numbers.

2. Students are required to demonstrate their ability by producing in their

own words. When using references and quotations to support your
summary in the assignment, students must reference any ideas or
data that are not their own. Any plagiarism from any books will be
subject to a deduction of marks.

3. Report Format

The cover page must contain the following:

- Course title.
- Assignment topic.
- Group member names with student numbers in brackets.

Assignment Topics #2 should consist of the following sections, in order

of appearance:
1) Table of contents.
2) Introduction.
3) The body
4) List of references and appendices.

Please bind/staple your assignment.