Question 1 (Marks: 100)
The purpose of this assignment is:
• to guide you in developing a good understanding of the nature and importance of the field of Economics; and
• to build a solid understanding of the microeconomic principles of demand and supply.
You have been tasked with developing a research report based on an economy of your choice anywhere in the world. The economy you select should be a growing economy or an economy that has experienced growth at some stage in its development. Present the findings of your research under the following headings:
• BACKGROUND AND ECONOMIC FUNDAMENTALS (10 Marks) Here you should include background information regarding the economy you have chosen (including geographical location, size of the economy, standard of living in the economy, economic growth rates, problems facing the economy). Include facts about your chosen economy that you believe are relevant to the different subsections of your report.
Your discussion should also clearly highlight the difference between microeconomics and macroeconomics by identifying some aspects of your chosen economy’s micro and macro economy.
(150 – 200 words)
• ECONOMIC SYSTEM (20 Marks)
A detailed discussion of the economic system used in your chosen economy (including the characteristics of the economic system, advantages, disadvantages, and an overall evaluation of the effectiveness of the economic system). (400 – 600 words)
• THE ROLE OF PRICES (10 Marks)
An examination of the role that prices play in the economic system you have chosen. (150 – 200 words)
• CRITICAL INDUSTRIES (10 Marks)
Identify the industry (or industries) that are strategically important and critical for economic growth in your chosen economy. Provide a brief background into the nature of each of these industries and their contribution to the economy as a whole. Limit your discussion to a maximum of two industries. (150 – 200 words)
DETERMINANTS OF DEMAND
Identification and in-depth discussion of the determinants of demand that have led to an
increase in market demand in one of the critical industries in your chosen economy. (Note: Make reasonable assumptions where necessary)
(250 – 300 words)
DETERMINANTS OF SUPPLY
Identification and in-depth discussion of the determinants of supply that have led to an
increase in market supply in one of the critical industries you have chosen. (Note: Make reasonable assumptions where necessary)
THE IMPORTANCE AND RELEVANCE OF ECONOMICS AS A FIELD OF STUDY
An examination of why a good understanding of the field of Economics is important and relevant with reference to your chosen economy.
Answers to Above Questions on Microeconomics
Answer 1: The country that is selected for the purpose of doing micro analysis is China. The Chinese economy has witnessed a significant amount of growth and it would be a best choice in doing a micro analysis. The specific areas of focus in the given report are an analysis of the economic system of China, the role of prices in the economic system, the critical industries that are fueling the growth of Chinese economy, the factors determining the demand and supply, and also an evaluation of the importance and relevance of economics as a field of study.
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