Tutorial Program S1 2014 -26022014

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Tutorial Program Semester 1, 2014

Australian School of Business

ECON1101 Microeconomics 1

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TUTORIAL SCHEDULE

Week Topic Reference

Week 1 3 March NO TUTORIALS

Week 2 10 March

Introduction/Administration Thinking as an Economist

Ch 1 and Appendix to Ch1 Appendix to Ch1 (may not be treated in Lectures)

Week 3 17 March

Comparative Advantage: The Basis for Trade

Ch 2. (Ch 8 (pp204-210)

Week 4 24 March

Supply and Demand: An Introduction Demand: The Benefit side of the Market

Ch 3 Ch 5 (exclude the appendix)

Week 5 31 March

Elasticity - including the mid-point formula

Ch 4 Appendix to Ch 4

Week 6 7 April

Perfectly Competitive Supply : The Cost side of the Market Ch 6

Week 7 14 April

As Friday this week is a public holiday. all tutorials on Friday are cancelled and students should attend any other tutorial Efficiency and Exchange A Supply and Demand treatment of Trade

Ch 7 Ch 8 (pp210 to chapter end)

Mid-Semester break: 18 April 27 April

Week 8 28 April

The Quest for Profit and the Invisible Hand. Ch 9

Week 9 5 May

Monopoly and other forms of Imperfect Competition Ch 10

Week 10 12 May Thinking Strategically

Ch 11

Week 11 19 May

Externalities, Common-Pool Resources and Property Rights

Ch 12

Week 12 26 May

Public Goods The Economics of Information

Ch 13 Ch 14

Week 13 2 June

Continue The Economics of Information Review if time permits

Ch 14

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TUTORIAL PROGRAM

TUTORIALS BEGIN IN WEEK 2

Students must attend the tutorial in which they are officially enrolled. Attendance at other tutorials will not be recorded. Each week your tutor will select one or two students to present the answers to selected questions in front of the entire class. This will give you practice in oral presentation. There will be no marks assigned to these presentations but your tutor will record whether you have participated or not participated.

Problem and Review Questions

The Problem Questions consist of selected endof-chapter problems and exercises from the textbook, Frank, Jennings and Bernanke, (3rd edition) and other problem exercises. You should attempt each weeks set of questions before the tutorial. (Students who use the 2nd edition of the text should ensure that the question numbers correspond to the set question).

There may not be time in class to cover all the set questions. You should ask your tutor to explain any concepts that you have difficulty with. The answers to each weeks tutorials will be posted on the subject website the week

following the tutorial. Hand in Tutorial Questions

In five selected weeks students are required to submit to their tutor a typed answer to one of the tutorial questions for that week. The questions for which a written answer is required will be named in the Tutorial Program as a Hand in Question.

This question will be discussed in the tutorial by the whole class and directed by the tutor who will guide you in the approach to the topic. You have a week in which to think about and write an answer to the question which you then submit in the following tutorial.

During the semester TWO of the five submitted answers (selected at random) will be graded and given a mark out of five which will be worth 10 marks of the total marks for this course.

Answers MUST be typed and submitted at the beginning of the tutorial to the tutor. Any diagrams may be hand drawn. Tutors will not accept electronic versions of these questions nor will they be accepted at any other time/place than in the tutorial. These questions may also form part of the Written Questions in the Week 5 and Week 8 Tests.

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Week 5 In-class Test (Week starting 31 March

In the Week 5 tutorial each student will write an answer to a question which will be worth 15 of the total marks for the course. Each class may have a different question. The test will last 30 minutes and will cover topics from Week 1 lectures to Week 3 lectures (refer to the Lecture Schedule), regardless of whether the material has been discussed in tutorials. The format of this test will be a question requiring a short written answer and/or a numerical problem and/or a diagram. You must sit the test in the tutorial in which you are enrolled. NO EXCEPTIONS. Students who sit the test in the wrong tutorial will not have their paper marked. There will be no supplementary exam for this component of the evaluation. Week 8 In-Class Test (Week starting 28 April)

In the Week 8 tutorial each student will write an answer to a question which will be worth 20 of the total marks for the course. Each class may have a different question set. The test will last 30 minutes and will cover topics from Week 1 lectures to Week 6 lectures (refer to the Lecture Schedule), regardless of whether the material has been discussed in tutorials. The format of this test will be a question requiring a short written answer and/or a numerical problem and/or a diagram. You must sit the test in the tutorial in which you are enrolled. NO EXCEPTIONS. Students who sit the test in the wrong tutorial will not have their paper marked. There will be no supplementary exam for this component of the evaluation. Absences from these in-class tests will result in a mark of zero. EMPLOYMENT AND SPORTING OBLIGATIONS AND ATTENDANCES AT EVENTS SPONSORED BY OTHER SUBJECTS IN THE BUSINESS SCHOOL AND OTHER FACULTIES ARE NOT REASONS FOR MISSING CLASS TESTS. You should keep a copy of these tests after they have been returned to you.

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TUTORIAL 1 (10 MARCH)

INTRODUCTION TO THE TUTORIAL PROGRAM

THINKING AS AN ECONOMIST You should use this first class to get to know your tutor and your classmates. Come to tutorials with prepared answers to the questions and be ready to discuss them in class. Your tutor will explain the aims of the Tutorial Program in general. The importance of your contribution in class will also be discussed.

In this class the tutor will select some students to prepare answers to present in the class the following week. Textbook Reading: Chapter 1 and Appendix to Chapter 1 Questions: Chapter 1 Review Questions: 1 to 8 inclusive Problems: 1 to 13 inclusive Not all questions will be covered in class. Answers to all questions will be posted on Moodle in the following week. Multiple Choice Quiz 1 See the course website for the Multiple Choice Quizzes. Quiz 1 can be attempted at any time and you may make an unlimited number of attempts. It will stay open till the end of Week 3. This Quiz is for revision purposes and will carry 0.5 marks towards the total marks for this course.

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TUTORIAL 2 (17 MARCH)

COMPARATIVE ADVANTAGE: THE BASIS FOR TRADE

In this class the tutor will select some students to prepare answers to present in the class the following week.

Textbook Reading: Chapter 2 Ch 8 (pp 204-210)

Questions: Chapter 2 Review Questions: 1, 3, 4, 5 and 7 Problems: 2, 4 and 6 Ch 8 (pp 204-210) Review Question: 2 Problems: 1 and 4 You should write an answer to each question and bring it to class.

In the News The class should discuss the material in the link below. This discussion should not take up more than 10 minutes and forms the basis of the following Hand in Question which is to be submitted in written form the following week. http://www.abc.net.au/news/2013-12-11/timeline-holden-history/5150240

http://www.abc.net.au/radionational/programs/rearvision/the-australian-car-industry/4776166#transcript

Hand in Question 1

1. Why did the Australian government give protection to the Australian car industry after World War 2?

2. Give reasons for the decline in Holdens share of car sales in Australia from over 40% in 1958 to 15.2% of total sales in 2006 and finally the shut down in 2017. What impact will the shutting down of Holden have on the economy?

3. Why has the Australian government stopped giving protection to the car industry?

4. Does Australia have a comparative advantage in the production of cars? Explain your answer.

Multiple Choice Quiz 1 See the course website for the Multiple Choice Quizzes. Quiz 1 can be attempted at any time and you may make an unlimited number of attempts. It will stay open till the end of Week 3. This Quiz is for revision purposes and will carry 0.5 marks towards the total marks for this course.

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TUTORIAL 3 (24 March)

SUPPLY AND DEMAND: AN INTRODUCTION

As there is a test in class next week NO students will be selected for presenting answers.

A written test worth 15 per cent of the final marks for this course will be conducted in the tutorial next week. Students should write the answers to the questions in the test in sentence and paragraph form. Focus terms should be defined. There should not be an introduction or a conclusion. Students should not write in first person and should check their spelling and grammar after having written their answer. Students will be given answer books in which to write answers. See the marking Rubric at the end of this Program. If you are still attending the incorrect tutorial you must regularise your attendance before the test next week. Textbook Reading: Chapter 3 Chapter 5 (excluding the Appendix)

Questions: Chapter 3 Review Questions: 1, 2, 3, 4 and 6 Problems: 1 to 10 and 13 Chapter 5 Review Questions: 3, 6, and 7 Problems: 2, 3, 4, 6 and 9 You should write an answer to each question and bring it to class. In the News The class should discuss the material in the links below. This discussion should not take up more than 10 minutes and forms the basis of the following tutorial question. Follow the link below and answer the following questions. http://www.abc.net.au/local/stories/2013/12/05/3905572.htm

Tutorial Question

1. Draw a demand and supply curve for the egg market in Sydney in December 2013.

2. Use the competitive market model to explain how the market for eggs has been affected by the outbreak of bird flu and by the Xmas period.

Multiple Choice Quiz 2 See the course website for the Multiple Choice Quizzes. This quiz can be attempted at any time and you may make an unlimited number of attempts. It will stay open for one week. This Quiz is for revision purposes and will carry 0.5 marks towards the total marks for this course.

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TUTORIAL 4 (31 March)

ELASTICITY

A written test worth 15 per cent of the final marks for this course will be conducted in this class. It will take 30 minutes of writing time and will be based on all materials covered in lectures Week 1- 3.


Textbook Reading: Chapter 4 and Appendix to chapter 4 Questions: Chapter 4 Review Questions: 1 to 6 Problems: 1, 2, 4, 6, 7 and 10 Choose the answers you had difficulty with to discuss in class. In the News The class should discuss the material in the link below. This discussion should not take up more than 10 minutes and forms the basis of the tutorial question. http://www.youtube.com/watch?v=ZO2-XRQ4r-0 http://www.youtube.com/watch?v=NfEtO00DSvI Recent estimates suggest that there are to-day 186 million children aged between 5-15 years in the global workforce, some in forced labour working to repay family debts, some in armed conflicts and others in prostitution

Tutorial Question

1. Apart from the human rights issue, describe one adverse economic effect of using child labour.

2. Briefly explain what you think is the major cause of child labour. 3. Use a demand and supply diagram to analyse the effectiveness of a policy

aimed at reducing the SUPPLY of child labour and give an example of such a policy.

4. Use a demand and supply diagram to analyse the effectiveness of a policy aimed at reducing the DEMAND for child labour and give an example of such a policy.

5. Use your diagrams to explain which policy is more effective and give reasons for your answer. Hint this question is about elasticity.

Multiple Choice Quiz 3 See the course website for the Multiple Choice Quizzes. This quiz can be attempted at any time and you may make an unlimited number of attempts. It will stay open for one week. This Quiz is for revision purposes and will carry 0.5 marks towards the total marks for this course.

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TUTORIAL 5 (7 April)

PERFECTLY COMPETITIVE SUPPLY: THE COST SIDE OF THE MARKET In this class the tutor will select some students to prepare answers to present in the class the following week.

Textbook Reading: Chapter 6

Chapter 6 Review Questions: 1, 2 and 7 Problems: 1 -10 Tutorial Questions You should attempt the numerical exercise on the NEXT PAGE and answer the following questions based on the table.

1. What is the relationship between the Total Product curve and the Total Cost curve?

2. What is the reason for this? 3. Why does the Marginal Cost curve rise? 4. Why is the Average Total Cost curve U shaped? 5. What is the relationship between the Marginal Cost curve and the Average

Total Cost curve?

Multiple Choice Quiz 4 See the course website for the Multiple Choice Quizzes. This Quiz can be attempted at any time and you may make an unlimited number of attempts. It will stay open for one week. This Quiz is for revision purposes and will carry 0.5 marks towards the total marks for this course.

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# Additional Question to be completed for Tutorial 5

a. Complete the table below, given the following information on productivity and costs for a firm using a variable input (labour) in combination with fixed inputs: Cost of fixed inputs is $300 per period. The price of variable inputs is $100 per unit.

VARIABLE INPUT

TOTAL PRODUCT

AVERAGEPRODUCT

MARGINAL PRODUCT

TOTAL FIXED COST

TOTAL VARIABLE COST

TOTAL COST

AVERAGE VARIABLE COST

AVERAGE FIXED COST

AVERAGECOST

MARGINAL COST

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) 1 100 2 250 3 450 4 640 5 790 6 900 7 980 8 1040 9 1080 10 1100

b. Graph the figures, using a separate sheet for each of these groups:

i. Total Product, Average Product and Marginal Product. ii. Total Cost Curve (TC) Total Fixed Cost (TFC) and Total Variable Cost, (TVC)

iii. Average Variable Cost (AVC), Average Total Cost (ATC) and Marginal Cost (MC) Curves.

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TUTORIAL 6 (14 APRIL)

EFFICIENCY AND EXCHANGE.

A SUPPLY AND DEMAND TREATMENT OF TRADE

A written test worth 20 per cent of the final marks for this course will be conducted in the class next week. It will take 30 minutes of writing time and will be based on all materials covered in lectures Week 1- 6, regardless of whether the material has been discussed in tutorials. See the marking Rubric at the end of this Program If you are attending a tutorial now in which you are not officially enrolled please understand that if you write the test in this class your paper will not be marked. As next week is an in-class test no students will be chosen to present answers next week. Textbook Reading: Chapter 7 Chapter 8 (pp211-end of chapter)

Questions: Chapter 7 Review Questions: 1, 2, and 6 Problems: 1, 4, 6, and 8 Chapter 8 Review Question 7 Problem Question 5


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TUTORIAL 7 (28 APRIL)

THE QUEST FOR PROFIT AND THE INVISIBLE HAND

Think and Write like an Economist. A written test worth 20 per cent of the final marks for this course will be conducted in this class. It will take 30 minutes of writing time and will be based on all materials covered in lectures Week 1- 6. In this class the tutor will select some students to prepare answers to present in the class the following week.

Textbook Reading: Chapter 9 Questions: Chapter 9 Review Questions: 1 to 5. Problems: 3, 4, 5 and 8 You may not have time to discuss all these questions in the tutorial. They should be carried over to the following class only if you are not able to understand the solutions given on line. Any other problems could be addressed in PASS. In the News The class should discuss the material in the links below. This discussion should not take up more than 10 minutes and forms the basis of the Hand in Question which is to be submitted in written form the following week.

http://www.news.com.au/lifestyle/food/alcopop-tax-fails-to-deter-teen-binge-drinking-raises-45-billion-in-revenue/story-fneuz92c-1226650824648 Hand in Question 2

1. What was the reason for the introduction of this tax? 2. Was it successful in achieving this objective? Use a demand and supply diagram

to explain to explain your answer. 3. What other consequences did this tax have?


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TUTORIAL 8 (5 May)

MONOPOLY AND OTHER FORMS OF IMPERFECT COMPETITION

In this class the tutor will select some students to prepare answers to present in the class the following week. Textbook Reading: Chapter 10

Questions: Chapter 10 Review Questions: 1 to 7 Problems: 1, 2, 3, 4, 6, 8, 9, 10 and 11

Hand in Question 3 (to be handed in the following week.) A local golf course has a joining fees based on the number of days that members can play each week. $33,000 for 7 day membership $12,000 for 5 day membership (no Saturday play allowed). $8,000 for 3 day membership (no Saturday play allowed). IN addition they had a structure of 7 day membership fees based on age as shown below.

Age New Entrance Fee ($s) 10 to 17 1,600 18 to 21 2,600 22 to 25 6,600 26 to 29 9,900 30 to 32 16,500 33 to 35 23,100 36 to 39 26,400 40 plus 33,000

1. Why does the club find it profitable to use this pricing policy? 2. What aspects of demand for membership for the different groups is the golf

club exploiting? 3. What determines the elasticity of demand for membership by the different

groups? Multiple Choice Quiz 7 See the course website for the Multiple Choice Quizzes. This Quiz can be attempted at any time and you may make an unlimited number of attempts. It will stay open for one week. This Quiz is for revision purposes and will carry 0.5 marks towards the total marks for this course.

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TUTORIAL 9 (12 May)

THINKING STRATEGICALLY

In this class the tutor will select some students to prepare answers to present in the class the following week. Textbook Reading: Chapter 11 Questions Chapter 11 Review Questions: 1 to 5 Problems: 1, 2, 3, 4, 6 7 8 and 9 In the News The class should discuss the material in the links below. This discussion should not take up more than 10 minutes and forms the basis of the Hand in Question which is to be submitted in written form the following week. http://www.accc.gov.au/media-release/accc-warns-of-gaol-for-cartel-conduct http://theconversation.com/factcheck-do-coles-and-woolies-control-80-of-the-market-15418 Hand in Question 4 The existence of two large supermarkets competing with each other is really beneficial for consumers as it will help keep prices down. Discuss this proposition after reading the article in the link above.

1. List and explain the economic benefits of having these two large firms operating in the market.

2. List and explain the economic costs of having these two large firms operating in the market.


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TUTORIAL 10 (19 MAY)

EXTERNALITIES: PROPERTY RIGHTS, COMMON-POOL RESOURCES AND OPEN

ACCESS


Textbook Reading: Chapter 12 Questions Chapter 12 Review Questions: 1, 2, 3, 5, 6 and 8 Problems: 1, to 6

In the News The class should discuss the material in the links below. This discussion should not take up more than 10 minutes and forms the basis of the Hand in Question which is to be submitted in written form the following week.

http://www.smh.com.au/federal-politics/political-news/maurice-newman-global-warming-a-

delusion-20131231-304nv.html http://www.carbonplanet.com/downloads/Carbon_Pollution_Reduction_Scheme.pdf Hand in Question 5

1. How does a carbon pollution permit scheme work? 2. Why did the former Australian government introduce a carbon tax? 3. Explain how the carbon tax pricing currently works in Australia and why the

Federal Government plans to remove the tax. 4. Compare the advantages of the carbon tax with the carbon permit scheme.


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TUTORIAL 11 (26 May)

PUBLIC GOODS AND THE ECONOMICS OF INFORMATION

In this class the tutor will select some students to prepare answers to present in the class the following week. Textbook Reading: Chapter 13 Chapter 14 Questions: Chapter 13 Review questions; 2, 3 and 4 Problems: 1, 2, 3, 5 and 6. Chapter 14 Problems: 1, 2, 3, 5, 6 and 7

In the News The class should discuss the material in the links below. This discussion should not take up more than 10 minutes and forms the basis of the Tutorial Question. http://www.smh.com.au/opinion/political-news/south-korea-reconsiders-whaling-plan-20120712-21x35.html Tutorial Question

1. What type of good is whaling? 2. What is the economic principle involved in the case of Korea commencing whaling? 3. Describe some economic policies which could be applied to combat the killing of whales. 4. Are these likely to be successful? Give reasons for your answer.


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Tutorial 12 (2 June)

THE ECONOMICS OF INFORMATION REVIEW

Textbook Reading: Chapter 14 Questions: Chapter 14 Problems: 1, 2, 3, 5, 6 and 7

In the News The class should discuss the material in the links below. This discussion should not take up more than 10 minutes and forms the basis of the following tutorial questions. http://www.oheschools.org/ohech3pg4.html Tutorial Question

1. What is asymmetric information and explain why asymmetric information leads to market failure?

2. What other industries face this problem of asymmetric information and market failure?

3. What if any is the solution to this problem?

The stuvac period is a student study period. Please do not expect to have your lecturer or tutor give you coaching in topics already covered. Multiple choice Quizzes All the quizzes will be open from this week till the day after the final exam.

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Assessment Rubric

Generic Marking Guide to a question with graphs or equations. Where the question says; Write a short answer to the following question, using a diagram in your response. Criteria Good

High distinction Distinction

Average Credit Pass

Below Average Fail

Accuracy and relevance of information

Information is appropriately selected to answer the question and accurately presented, so that response to task is complete.

Information is generally relevant and accurate though some gaps occur.

Information is not relevant to task or there may be inaccuracies so that text does not effectively answer the question.

Structure of and relations in text

Text is well-structured and coherent. Good level of cohesion achieved through logically sequenced sentences and appropriate transitions between them.

Text is mostly structured accurately though it could be developed more effectively and could be more coherent. Text is structured logically though some relations could be refined.

Structure is weak and does not contribute to an effective text. There may be some errors in logical sequencing or inappropriate transitions.

Use of diagram, graph

Diagram is clearly set out and labelled with curves correct shape and slope. The diagram is located in the appropriate part of the text which relates to the diagram. Text adds meaning to the diagram.

Clear diagram with one or two labelling omissions or errors. Some errors in position or slope of curves. Diagram may not be placed in the appropriate part of the text. Limited description of the diagram.

Missing or inaccurate diagram, incorrect diagram. Labels of curves wrong. Curves wrong shape or slope. No description of diagram in text.

Clarity, grammar, spelling

All sentences are complete and grammatically accurate. Appropriate terms and language are used. Expression is clear and academic. There are minimal spelling errors.

Expression is generally clear and accurate, though errors occur. Some attempt to use academic language but perhaps not consistently. Some spelling errors occur.

The grammatical errors prevent the meaning being conveyed. Many sentences are incomplete or poorly constructed. Language choices are inappropriate or not academic. Many spelling errors occur.

Tutorial Program S1 2014 -26022014

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