TASK Assignment consists of two essay questions (worth 10 marks each) based on the subject material and require some additional research. Sources used in your answer should be fully referenced in Harvard style. You are advised to access media items for further elaboration and illustration of the issues raised in your essays. It is expected that you use at least 5 references for each essay (10 in total). Complete the following essays ensuring that you apply economic principles or theory wherever possible to support your discussion. Communicate your ideas with correct grammar, spelling and writing style and support your answers with diagrams and illustrative examples as necessary. Essay 1 (10 marks) = (Approximately 1,000 words) Utilising your knowledge of the theory of the firm, provide a rationale for the Australian government’s JobKeeper policy being careful to distinguish between the short-run and the long-run and between the needs of small and medium sized businesses compared with large businesses. Essay 2 (10 marks) = (Approximately 1,000 words) Utilising economic theory and illustrative examples write an essay which explains why Australia was in a deep recession in 2020. In your essay, assess the effectiveness of the government response in limiting the depth of the recession and in contributing to recovery from it. RATIONALE:- This assessment task will assess the following learning outcome/s: • be able to apply demand and supply analysis to make a range of market related decisions. • be able to make decisions that incorporate the relevant benefits and cost analysis. • be able to explain and defend why it is important to understand the structure of the market in which a firm operates. • be able to critically examine and demonstrate why it might be necessary for government to intervene in the production of goods and services and in the distribution of income. • be able to examine critically the health of the economy as a whole through the analysis of major economic variables and advise on likely policy alternatives. This assignment provides an opportunity for you • to demonstrate that you are familiar with the use of the model of supply and demand, the concepts of costs and benefits, the importance of market structure and the role of government intervention. • to present a detailed analysis of some of the factors that give rise to government intervention in the market through the application of your knowledge of theory supported by evidence drawn from sources of your choosing.
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