Principles of Economics Assignment | Online Assignment

Requirements and question inside pdf file.
All question please use Australia as base and use resources, examples etc from Australia mainly. Graphs/ Diagram is needed as Q1 required. Thank you

ECON1020 – PRINCIPLES OF ECONOMICS 1 INDIVIDUAL ASSIGNMENT

BACKGROUND AND QUESTIONS
COVID-19 (Coronavirus) is having a devastating impact on the health and wellbeing of millions of people worldwide. The World Health Organization recognized the virus as a pandemic on 11 March 2020 and cases of COVID-19 have now been reported in over 200 countries and territories.
The COVID-19 crisis has been called a twin health and economic emergency. To slow virus transmission rates and flatten the curve, many governments have implemented lockdowns that restrict the movement of residents. While the nature of these lockdowns varies from country-to-country, the economic consequences are unambiguous. Production, spending, and incomes have declined. Many businesses have been forced to close or reduce their trading hours resulting in increasing levels of unemployment.
During this assignment, you will be asked to apply the economic concepts and models that you have learnt in ECON1020 to a range of COVID-19 related issues.
Q1 Take a typical worker, Jordan. Before the onset of COVID-19, Jordon earned $30 per hour (after taxation) in their job. Assume that Jordan has no other sources of income or savings. Write down the equation of Jordan’s consumption budget constraint (for a single working day). Using a model with consumption on the vertical axis and hours of free time on the horizontal axis, plot Jordan’s budget constraint. Label all relevant elements of this diagram and state the value of the horizontal and vertical intercepts. (4 marks)
Q2 Now, add an indifference curve to the model you developed in Q1 and label it IC1. This indifference curve should be at a utility maximising point and show Jordan’s corresponding choice of consumption and hours of free time. As you have not been given any information regarding Jordan’s preferences, state one assumption that you have made about Jordan’s utility maximising choice and one assumption that you have made about the slope of Jordan’s indifference curve. (3 marks)
Q3 The arrival of COVID-19 brought financial hardship for Jordan’s employer. As a result, Jordan has had their hourly wage cut by 20% (a common occurrence around the world at the moment). Write down a new equation for Jordan’s consumption budget constraint (for a single working day). Using the same model developed in Q1-Q2, plot Jordan’s new budget constraint. Clearly state the value of the horizontal and vertical intercepts. (4 marks)
MACQUARIE
BUSINESS SCHOOL
Department of Economics
Q4 Now, add a second indifference curve to the model you developed in Q1-Q3 and label it IC2. This indifference curve should be at a new utility maximising point and show Jordan’s corresponding choice of consumption and hours of free time. State what has happened to Jordan’s choice of consumption and free time. What can be said about Jordan’s overall level of utility after the onset of COVID-19? (3 marks)
Q5 Using the model created in Q1-Q4, show the income effect, substitution effect and overall effect of Jordan’s wage decrease. Compare the relative size of the income and substitution effects shown on your model. What can be inferred about Jordan’s preferences for free time and consumption from this comparison? (4 marks)
Q6 Explain the economic link between opportunity cost and a decrease in wages. How might this have impacted Jordan’s utility maximising choice? (2 marks)
Q7 Economists have predicted that the outbreak of COVID-19 will lead to large decreases in the gross domestic product (GDP) of many countries. Discuss the pros and cons of using GDP to measure the impact of COVID-19 on economic activity. (5 marks)
Several government policies have been proposed to attempt to mitigate the economic effects of COVID-19. Some are using traditional monetary and fiscal policies (such as cutting interest rates, quantitative easing and bailouts). Others are trying out non-traditional methods (such as direct cash transfers, loans to businesses conditional on maintaining employment and wage subsidies).
The Australian Government has implemented several economic measures in response to COVID-19. These include providing two separate $750 payments to social security, veteran and other income support recipients to support households. They are also expanding eligibility to income support payments and establishing a new, time-limited Coronavirus supplement to be paid at a rate of $550 per fortnight to eligible recipients.
Q8 From a consequentialist perspective, is the introduction of payments to support households and income during the COVID-19 crisis (described above) ethically justified? (5 marks)
Q9 Using a deontological ethical framework, construct an argument either in favour of the payments to support households and income during the COVID-19 crisis (described above) or against them. (5 marks)
Q10 Evaluate the introduction of the payments to support households and income during the COVID-19 crisis (described above) from the perspective of substantive and procedural judgements of fairness. (5 marks)
ADDITIONAL READING
The Treasury. 2020. Income support for individuals. Economic Response to the Coronavirus Fact Sheet. Available from: https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Income_Support_for_Individuals_0.pdf
MACQUARIE
BUSINESS SCHOOL
Department of Economics
The Treasury. 2020. Payments to support households. Economic Response to the Coronavirus Fact Sheet. Available from: https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Payments_to_support_households_0.pdf
IMPORTANT INFORMATION
GENERAL
The assignment is strictly 2000 words maximum (excluding your reference list and any words used to annotate your model). There is no specific word count for each question, but you must keep within the total word limit across all questions in the assignment.
The assignment must be prepared using a word processing program (e.g. Microsoft Word). As detailed below, however, your final submission must be in PDF format. Any included figures should be prepared electronically. The most commonly used tools for drawing economic models are Microsoft Word or Google Drawings. For those of you who are new to drawing such models electronically, there are some handy YouTube tutorials on how to get started.
Answers to any questions that have been handwritten or hand-drawn will NOT be marked.
The assignment will count towards 30% of your final mark.
The is no need to add a cover page to your assignment or repeat the text of the questions in your submissions (simply answer questions in order, denoting Q1, Q2, Q3… etc.).
FORMATTING/REFERENCING
The assignment must be 1.5-spaced. Use a standard font (e.g. Times New Roman, Calibri, Arial) with a font size of 12.
All sources used in the assignment should be appropriately referenced using a standard referencing system (e.g. Harvard style). Please consult Macquarie University Library’s resources for further information about referencing.
You do not need to reference the unit textbook, lecture slides or lecture recordings. However, you should be mindful not to plagiarise from these, or any other sources, as per the note below.
SUBMISSION
The assignment is due at 11 am on Monday, 18 May 2020. No extensions will be granted. There will be a deduction of 10% of the total available marks made from the total awarded mark for each 24 hour period or part thereof that the submission is late (for example, 25 hours late in submission – 20% penalty). This penalty does not apply to cases in which an application for Special Consideration is made and approved.
MACQUARIE
BUSINESS SCHOOL
Department of Economics
You must submit through iLearn using the Turnitin link provided. All submissions must be in PDF format. Turnitin often encounters problems with Microsoft Word files that include figures and/or tables. Failure to submit as a PDF file may result in a marker being unable to mark your submission.
The university uses plagiarism detecting software (Turnitin) on all submissions. By submitting through Turnitin each student acknowledges the University’s policies relating to plagiarism and academic misconduct. You are welcome to work with other students to assist in developing your knowledge and ideas but ultimately the final submission must represent your own work.
MARKING
A detailed marking rubric is provided as an appendix table in this document.
CHECKLISTS
DOCUMENT PREPARATION CHECKLIST
☐ My assignment is typed using a word processor (e.g. Microsoft Word).
☐ My assignment is written in full sentences and clear language.
☐ My assignment is proofread and grammatical errors and typos are minimised.
☐ My assignment is written under the word limit, 2000 words.
☐ My assignment is written with a standard font with a size of 12.
☐ Diagrams are drawn clearly and fully labelled. Poorly drawn diagrams reflect poor communication which may result in loss of marks.
☐ Diagrams are not distorted and properly inserted into the master document.
☐ My assignment is saved as a PDF file of a size less than 40MB.
AFTER-SUBMISSION CHECKLIST
☐ I have double-checked whether the assignment was properly uploaded.
☐ I have received and recorded the Turnitin receipt number for my records.
MACQUARIE
BUSINESS SCHOOL
Department of Economics
APPENDIX: ECON1020 S1 2020 Individual Assignment Marking Rubric
Criteria
Fail (F)
Pass (P)
Credit (Cr)
Distinction (D)
High Distinction (HD)
Communication – Articulation of issues (30%)
Issues are clearly stated and succinctly yet comprehensively explained as they relate to economic theories, concepts and definitions.
Student does not provide any description of issues showing no understanding of the economic theories, concepts and definitions.
Student poorly describes few issues demonstrating limited understanding of the economic theories, concepts and definitions.
Student mostly effectively describes several issues demonstrating fair understanding of the economic theories, concepts and definitions.
Student effectively describes multiple issues demonstrating deep understanding of the economic theories, concepts and definitions.
Student effectively and creatively describes multiple issues demonstrating an extensive understanding of the economic theories, concepts and definitions.
Communication – Analysis (30%)
Issues are analysed using relevant and appropriate economic theories, concepts and definitions. Analysis includes research studies or examples. Analysis considers diverse/competing perspectives.
Student fails to demonstrate an analysis substantiating any of made claims through theories, concepts, definitions, research studies or examples. Student provides information and no analysis, ideas/solutions.
Student ordinarily demonstrates an analysis, develop poor arguments, struggling to substantiate claims through few and/or irrelevant theories, concepts, definitions, research studies or examples. Student mostly provides information and limited analysis, ideas/solutions.
Student accurately demonstrates an analysis; develops fair arguments but they lack substantiation through relevant theories, concepts, definitions, research studies and/or examples.
Student accurately demonstrates an analysis; skilfully develops arguments, substantiating made claims through relevant theories, concepts, definitions, research studies and/or examples.
Student accurately and insightfully demonstrates an analysis; masterfully develops arguments, substantiating made claims through relevant theories, concepts, definitions, research studies and/or examples.
Communication – Written presentation and evidence of research (10%)
Clarity of structure, diagrams, accuracy, academic tone, relevance, academic sources
Text has no formal structure. Very poor text logic with frequent use of contradictions. Very poor use of economic diagrams. Absence of academic tone due to consistent use of informal language. Referencing is non-conforming to standard (e.g. Harvard) style and/or absent. Articles are from non-reputable sources and/or are irrelevant to and do not substantiate made claims.
Text has under-developed formal structure. Poor text logic with recurrent use of contradictions.
Poor use of economic diagrams. Inappropriate academic tone due to frequent use of informal language. Referencing is mainly inaccurate and/or does not conform to a standard (e.g. Harvard) style. Articles are often from non-scientific sources, irrelevant to arguments, do not help to substantiate made claims.
Text has formal structure. Satisfactory text logic with some use of contradictions. Satisfactory use of economic diagrams. Inconsistent academic tone due to use of informal language. Referencing is fairly accurate using standard (e.g. Harvard) style. Articles are mostly from reputable sources; are relevant to arguments and substantiate made claims.
Text has clear and well-developed formal structure. Excellent text logic with miniscule use of contradictions. Excellent use of economic diagrams. Appropriate academic tone. Referencing is mainly accurate using standard (e.g. Harvard) style. Articles are from reputable sources; are very relevant to arguments; thoughtfully substantiate made claims.
Text has clear and original formal structure. Outstanding text logic with no use of contradictions. Outstanding use of economic diagrams. Appropriate and confident academic tone. Referencing is impeccably accurate using standard (e.g. Harvard) style. Articles are from highly reputable sources; are highly relevant to arguments; insightfully substantiate made claims.
Ethics (30%)
Demonstrate an ability to use ethical frameworks to evaluate economic theory and real-world applications.
The student does not demonstrate an ability to use ethical frameworks to evaluate economic theory and real-world applications.
The student poorly demonstrates an ability to use ethical frameworks to evaluate economic theory and real-world applications.
The student generally demonstrates an ability to use ethical frameworks to evaluate economic theory and real-world applications.
The student in nearly all instances demonstrates an ability to use ethical frameworks to evaluate economic theory and real-world applications.
The student at all times effectively and creatively demonstrates an ability to use ethical frameworks to evaluate economic theory and real-world applications.