1. The two (2) extremes of economy type are Centrally Controlled (or Command) and Free-Market. If you could build an economy from scratch what type of economy would you build? Your answer should include the following (250 words):a. State which type of economy you would build,
b. Include arguments defending you choice of economy including:
i. In-depth discussion about the difference between these types of economy,
ii. Make reference to claimed Pros and Cons for each type of the extreme types of economy.2. With the aid of demand curve illustrations complete the following (200 words):
a. Discuss the relationship between Price and Quantity for any given level of demand on a demand curve.
b. Discuss what determines the characteristics of any demand curve. Include descriptions of how each determinant might affect demand.3. Complete the following (200 words):
a. Discuss Cross-price Elasticity of Demand and how it might be used to benefit an organisation.
b. Discuss Income Elasticity of Demand I and how it might be used to benefit an organisation.4. Relative to the empty table below complete the following.
a. Fill-in TR, MR, MC, TFC, TVC, AFC, AVC, AC.
b. Graph TFC, TVC, and TC.
c. On separate diagrams draw the TC, TFC, TVC, AC, MC and MR curves.
d. At what quantity does the firm maximize their profits?
Q P TR TC MR MC TFC TVC AFC AVC AC
0 10 8
1 10 15
2 10 20
3 10 26
4 10 34
5 10 44
6 10 56
7 10 70
8 10 85
9 10 100 5. Compare and contrast Monopoly, Monopolistic Competition, Perfect Competition and Oligopoly (250 words).6. With the aid of appropriate illustrations, discuss why a monopolist would never produce in the inelastic range of the demand curve. (200 words)7. Explain, with diagrams if needed, the Circular Flow of Income. Among other things, your answer should include current examples and discussion on the following (250 words):
a. Why money circulates – Households, Firms, Spending, Incomes…
b. Inner Flow
c. Injections
d. Leakage/Withdrawals
e. Equilibrium8. Explain how renewed demand for Australian resources would have a positive multiplier effect on the Australian economy. You may like to use an imaginary mining town in your answer (200 words).9. How well could each of the following fulfil the functions of money (200 words)?
a. wheat,
b. strawberries,
c. gold,
d. diamonds and
e. a time deposit in a bank that requires one month notice of withdrawal?10. Describe Fiscal Balance and discus how it might vary with the business cycle (200 words)11. Distinguish between a free trade area and a common market (200 words).12. What adverse effects on the domestic economy may follow from (200 words)?
a. a depreciation of the exchange rate and
b. An appreciation of the exchange rate?