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Australian School of Business

ECON1101 Microeconomics 1

Tutorial Program
Semester 1, 2014

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Common-Pool Resources Ch 12 and Property Rights Week 12 26 May Public Goods The Economics of Information Week 13 2 June Continue The Economics of Information Review if time permits Ch 13 Ch 14 Ch 14 Page | 2 .including the mid-point formula Perfectly Competitive Supply : The Cost side of the Market As Friday this week is a public holiday. 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. Trade (Ch 8 (pp204-210) Supply and Demand: An Introduction Ch 3 Demand: The Benefit side of the Ch 5 (exclude the appendix) Market Introduction/Administration Thinking as an Economist Elasticity . all tutorials on Friday are cancelled and students should attend any other tutorial Efficiency and Exchange A Supply and Demand treatment of Trade Ch 4 Appendix to Ch 4 Ch 6 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.TUTORIAL SCHEDULE Week Week 1 3 March Week 2 10 March Week 3 17 March Week 4 24 March Week 5 31 March Week 6 7 April Week 7 14 April Topic Reference NO TUTORIALS Ch 1 and Appendix to Ch1 Appendix to Ch1 (may not be treated in Lectures) Comparative Advantage: The Basis for Ch 2.

There may not be time in class to cover all the set questions. Any diagrams may be hand drawn. (Students who use the 2nd edition of the text should ensure that the question numbers correspond to the set question). Jennings and Bernanke. You have a week in which to think about and write an answer to the question which you then submit in the following tutorial. These questions may also form part of the Written Questions in the Week 5 and Week 8 Tests. (3rd edition) and other problem exercises. The questions for which a written answer is required will be named in the Tutorial Program as a Hand in Question. Answers MUST be typed and submitted at the beginning of the tutorial to the tutor. The answers to each week’s tutorials will be posted on the subject website the week following the tutorial.         Problem and Review Questions The Problem Questions consist of selected end–of-chapter problems and exercises from the textbook. There will be no marks assigned to these presentations but your tutor will record whether you have “participated” or “not participated”.TUTORIAL PROGRAM TUTORIALS BEGIN IN WEEK 2 Students must attend the tutorial in which they are officially enrolled. Each week your tutor will select one or two students to present the answers to selected questions in front of the entire class. 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. You should ask your tutor to explain any concepts that you have difficulty with. You should attempt each week’s set of questions before the tutorial. 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. Page | 3 . Frank. Tutors will not accept electronic versions of these questions nor will they be accepted at any other time/place than in the tutorial. Attendance at other tutorials will not be recorded. 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. This will give you practice in oral presentation.

The format of this test will be a question requiring a short written answer and/or a numerical problem and/or a diagram. NO EXCEPTIONS. regardless of whether the material has been discussed in tutorials. 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. You must sit the test in the tutorial in which you are enrolled. There will be no supplementary exam for this component of the evaluation. Each class may have a different question set. Page | 4 . You must sit the test in the tutorial in which you are enrolled. The format of this test will be a question requiring a short written answer and/or a numerical problem and/or a diagram. 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. Absences from these in-class tests will result in a mark of zero. Students who sit the test in the wrong tutorial will not have their paper marked. 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. The test will last 30 minutes and will cover topics from Week 1 lectures to Week 3 lectures (refer to the Lecture Schedule). Each class may have a different question.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. 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.

Quiz 1 can be attempted at any time and you may make an unlimited number of attempts.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. Multiple Choice Quiz 1 See the course website for the Multiple Choice Quizzes. Come to tutorials with prepared answers to the questions and be ready to discuss them in class. Page | 5 . Your tutor will explain the aims of the Tutorial Program in general. It will stay open till the end of Week 3. This Quiz is for revision purposes and will carry 0. 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.5 marks towards the total marks for this course. In this class the tutor will select some students to prepare answers to present in the class the following week. The importance of your contribution in class will also be discussed.

5 and 7 Problems: 2.net. 4. Why did the Australian government give protection to the Australian car industry after World War 2? 2. Does Australia have a comparative advantage in the production of cars? Explain your answer. Textbook Reading: Chapter 2 Ch 8 (pp 204-210) Questions: Chapter 2 Review Questions: 1. This Quiz is for revision purposes and will carry 0. It will stay open till the end of Week 3.net. 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.2% of total sales in 2006 and finally the shut down in 2017. Give reasons for the decline in Holden’s share of car sales in Australia from over 40% in 1958 to 15. http://www. Quiz 1 can be attempted at any time and you may make an unlimited number of attempts.au/radionational/programs/rearvision/the-australian-carindustry/4776166#transcript Hand in Question 1 1. What impact will the shutting down of Holden have on the economy? 3. 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. Page | 6 . Why has the Australian government stopped giving protection to the car industry? 4.abc. Multiple Choice Quiz 1 See the course website for the Multiple Choice Quizzes. 3.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.abc.au/news/2013-12-11/timeline-holden-history/5150240 http://www.5 marks towards the total marks for this course.

htm Tutorial Question 1. Students should write the answers to the questions in the test in sentence and paragraph form. 4 and 6 Problems: 1 to 10 and 13 Chapter 5 Review Questions: 3. It will stay open for one week. http://www. See the marking Rubric at the end of this Program. 3. This Quiz is for revision purposes and will carry 0.5 marks towards the total marks for this course.net. 3. There should not be an introduction or a conclusion. This discussion should not take up more than 10 minutes and forms the basis of the following tutorial question.abc. In the News The class should discuss the material in the links below. Multiple Choice Quiz 2 See the course website for the Multiple Choice Quizzes. Focus terms should be defined. 6 and 9 You should write an answer to each question and bring it to class.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. Page | 7 . A written test worth 15 per cent of the final marks for this course will be conducted in the tutorial next week.au/local/stories/2013/12/05/3905572. Follow the link below and answer the following questions. 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. If you are still attending the incorrect tutorial you must regularise your attendance before the test next week. Students will be given answer books in which to write answers. Students should not write in first person and should check their spelling and grammar after having written their answer. and 7 Problems: 2. Draw a demand and supply curve for the egg market in Sydney in December 2013. 2. 6. Textbook Reading: Chapter 3 Chapter 5 (excluding the Appendix) Questions: Chapter 3 Review Questions: 1. This quiz can be attempted at any time and you may make an unlimited number of attempts. 4. 2.

4. some in forced labour working to repay family debts. Apart from the human rights issue. Hint this question is about elasticity. some in armed conflicts and others in prostitution Tutorial Question 1. 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. Multiple Choice Quiz 3 See the course website for the Multiple Choice Quizzes. http://www. 2. 4. 2. Page | 8 . In the News The class should discuss the material in the link below. This quiz can be attempted at any time and you may make an unlimited number of attempts.com/watch?v=NfEtO00DSvI Recent estimates suggest that there are to-day 186 million children aged between 5-15 years in the global workforce. This Quiz is for revision purposes and will carry 0. Briefly explain what you think is the major cause of child labour.com/watch?v=ZO2-XRQ4r-0 http://www. Textbook Reading: Chapter 4 and Appendix to chapter 4 Questions: Chapter 4 Review Questions: 1 to 6 Problems: 1. 7 and 10 Choose the answers you had difficulty with to discuss in class. It will take 30 minutes of writing time and will be based on all materials covered in lectures Week 1. In this class the tutor will select some students to prepare answers to present in the class the following week.youtube.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. 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.3. It will stay open for one week.youtube. 6. describe one adverse economic effect of using child labour. This discussion should not take up more than 10 minutes and forms the basis of the tutorial question. 3. 5. Use your diagrams to explain which policy is more effective and give reasons for your answer.5 marks towards the total marks for this course.

Why is the Average Total Cost curve U shaped? 5. It will stay open for one week. 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.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. 1. What is the relationship between the Total Product curve and the Total Cost curve? 2. What is the reason for this? 3. 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. Page | 9 . Textbook Reading: Chapter 6 Chapter 6 Review Questions: 1. Why does the Marginal Cost curve rise? 4. This Quiz is for revision purposes and will carry 0. This Quiz can be attempted at any time and you may make an unlimited number of attempts.5 marks towards the total marks for this course.

Total Product. Average Product and Marginal Product. (TVC) iii. Total Cost Curve (TC) Total Fixed Cost (TFC) and Total Variable Cost. using a separate sheet for each of these groups: i. Average Total Cost (ATC) and Marginal Cost (MC) Curves. TOTAL AVERAGE VARIABLE TOTAL AVERAGE MARGINAL TOTAL TOTAL INPUT PRODUCT PRODUCT PRODUCT FIXED VARIABLE COST VARIABLE COST COST COST (1) (2) (3) (4) (5) (6) (7) (8) 1 100 2 250 3 450 4 640 5 790 6 900 7 980 8 1040 9 1080 10 1100 AVERAGE AVERAGE MARGINAL FIXED COST COST COST (9) (10) (11) b. Complete the table below. Graph the figures. ii. Page | 10 . 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. Average Variable Cost (AVC).# Additional Question to be completed for Tutorial 5 a. The price of variable inputs is $100 per unit.

5 marks towards the total marks for this course. 6. regardless of whether the material has been discussed in tutorials. Textbook Reading: Chapter 7 Chapter 8 (pp211-end of chapter) Questions: Chapter 7 Review Questions: 1.TUTORIAL 6 (14 APRIL) EFFICIENCY AND EXCHANGE.6. As next week is an in-class test no students will be chosen to present answers next week. and 8 Chapter 8 Review Question 7 Problem Question 5 Multiple Choice Quiz 5 See the course website for the Multiple Choice Quizzes. This Quiz is for revision purposes and will carry 0. It will stay open for one week. 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. Page | 11 . This Quiz can be attempted at any time and you may make an unlimited number of attempts. 2. It will take 30 minutes of writing time and will be based on all materials covered in lectures Week 1. 4. 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. and 6 Problems: 1.

4. In the News The class should discuss the material in the links below. 5 and 8 You may not have time to discuss all these questions in the tutorial. It will take 30 minutes of writing time and will be based on all materials covered in lectures Week 1.TUTORIAL 7 (28 APRIL) THE QUEST FOR PROFIT AND THE INVISIBLE HAND Think and Write like an Economist.5 marks towards the total marks for this course. What was the reason for the introduction of this tax? 2.au/lifestyle/food/alcopop-tax-fails-to-deter-teen-bingedrinking-raises-45-billion-in-revenue/story-fneuz92c-1226650824648 Hand in Question 2 1. They should be carried over to the following class only if you are not able to understand the solutions given on line. Textbook Reading: Chapter 9 Questions: Chapter 9 Review Questions: 1 to 5. 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.news. This Quiz can be attempted at any time and you may make an unlimited number of attempts. http://www. 3. This Quiz is for revision purposes and will carry 0. Any other problems could be addressed in PASS.6. What other consequences did this tax have? Multiple Choice Quiz 6 See the course website for the Multiple Choice Quizzes. Problems: 3. Was it successful in achieving this objective? Use a demand and supply diagram to explain to explain your answer.com. A written test worth 20 per cent of the final marks for this course will be conducted in this class. Page | 12 . In this class the tutor will select some students to prepare answers to present in the class the following week. It will stay open for one week.

Page | 13 .000 for 5 day membership (no Saturday play allowed). What aspects of demand for membership for the different groups is the golf club exploiting? 3. $8. 4.000 for 7 day membership $12.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. $33. What determines the elasticity of demand for membership by the different groups? Multiple Choice Quiz 7 See the course website for the Multiple Choice Quizzes. 10 and 11 Hand in Question 3 (to be handed in the following week. 8.000 for 3 day membership (no Saturday play allowed). This Quiz is for revision purposes and will carry 0.000 1.400 33. Why does the club find it profitable to use this pricing policy? 2. Age 10 to 17 18 to 21 22 to 25 26 to 29 30 to 32 33 to 35 36 to 39 40 plus New Entrance Fee ($’s) 1. It will stay open for one week. 6.900 16.5 marks towards the total marks for this course. Textbook Reading: Chapter 10 Questions: Chapter 10 Review Questions: 1 to 7 Problems: 1. IN addition they had a structure of 7 day membership fees based on age as shown below. This Quiz can be attempted at any time and you may make an unlimited number of attempts.) A local golf course has a joining fees based on the number of days that members can play each week.600 6.600 9. 3.500 23. 9.100 26. 2.600 2.

This Quiz can be attempted at any time and you may make an unlimited number of attempts.gov. Multiple Choice Quiz 8 See the course website for the Multiple Choice Quizzes. List and explain the economic benefits of having these two large firms operating in “the market”.” Discuss this proposition after reading the article in the link above.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.au/media-release/accc-warns-of-gaol-for-cartel-conduct http://theconversation.5 marks towards the total marks for this course. This Quiz is for revision purposes and will carry 0. 6 7 8 and 9 In the News The class should discuss the material in the links below.accc. Textbook Reading: Chapter 11 Questions Chapter 11 Review Questions: 1 to 5 Problems: 1.com/factcheck-do-coles-and-woolies-control-80-of-themarket-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. 2. 4. http://www. 3. It will stay open for one week. 2. 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. Page | 14 . List and explain the economic costs of having these two large firms operating in the market. 1.

au/federal-politics/political-news/maurice-newman-global-warming-adelusion-20131231-304nv.html http://www. Page | 15 . Explain how the carbon tax pricing currently works in Australia and why the Federal Government plans to remove the tax.5 marks towards the total marks for this course. Compare the advantages of the carbon tax with the carbon permit scheme.carbonplanet. 3. How does a carbon pollution permit scheme work? 2. COMMON-POOL RESOURCES AND OPEN ACCESS In this class the tutor will select some students to prepare answers to present in the class the following week. 5. http://www. 2.TUTORIAL 10 (19 MAY) EXTERNALITIES: PROPERTY RIGHTS. This Quiz is for revision purposes and will carry 0. This Quiz can be attempted at any time and you may make an unlimited number of attempts.smh. 4. Textbook Reading: Chapter 12 Questions Chapter 12 Review Questions: 1.com/downloads/Carbon_Pollution_Reduction_Scheme. It will stay open for one week. to 6 In the News The class should discuss the material in the links below. 6 and 8 Problems: 1.com. Why did the former Australian government introduce a carbon tax? 3. Multiple Choice Quiz 9 See the course website for the Multiple Choice Quizzes.pdf Hand in Question 5 1. 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.

smh. 3 and 4 Problems: 1.com. Textbook Reading: Chapter 13 Chapter 14 Questions: Chapter 13 Review questions. 4.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. What type of “good” is whaling? What is the economic principle involved in the case of Korea commencing whaling? Describe some economic policies which could be applied to combat the killing of whales. Chapter 14 Problems: 1. This Quiz is for revision purposes and will carry 0. This discussion should not take up more than 10 minutes and forms the basis of the Tutorial Question.au/opinion/political-news/south-korea-reconsiders-whalingplan-20120712-21x35. 5 and 6. http://www. 6 and 7 In the News The class should discuss the material in the links below. 2. Multiple Choice Quiz 10 See the course website for the Multiple Choice Quizzes. Page | 16 .5 marks towards the total marks for this course.html Tutorial Question 1. 2. 3. 3. Are these likely to be successful? Give reasons for your answer. 2. 3. 5. 2. It will stay open for one week. This Quiz can be attempted at any time and you may make an unlimited number of attempts.

Multiple choice Quizzes All the quizzes will be open from this week till the day after the final exam.org/ohech3pg4. What other industries face this problem of asymmetric information and market failure? 3.Tutorial 12 (2 June) THE ECONOMICS OF INFORMATION REVIEW Textbook Reading: Chapter 14 Questions: Chapter 14 Problems: 1. 5. Page | 17 .oheschools. 2. Please do not expect to have your lecturer or tutor give you coaching in topics already covered. This discussion should not take up more than 10 minutes and forms the basis of the following tutorial questions. What is asymmetric information and explain why asymmetric information leads to “market failure”? 2. http://www. 6 and 7 In the News The class should discuss the material in the links below.html Tutorial Question 1. What if any is the solution to this problem? The stuvac period is a student study period. 3.

Clear diagram with one or two labelling omissions or errors. 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. Some attempt to use academic language but perhaps not consistently. spelling All sentences are complete and grammatically accurate. Labels of curves wrong. Use of diagram.Assessment Rubric Generic Marking Guide to a question with graphs or equations. There may be some errors in logical sequencing or inappropriate transitions. Many spelling errors occur. Expression is clear and academic. Missing or inaccurate diagram. Some errors in position or slope of curves. incorrect diagram. The grammatical errors prevent the meaning being conveyed. Good level of cohesion achieved through logically sequenced sentences and appropriate transitions between them. The diagram is located in the appropriate part of the text which relates to the diagram. Some spelling errors occur. graph Diagram is clearly set out and labelled with curves correct shape and slope. grammar. There are minimal spelling errors. Text is mostly structured accurately though it could be developed more effectively and could be more coherent. Many sentences are incomplete or poorly constructed. Language choices are inappropriate or not academic. Where the question says. though errors occur. Appropriate terms and language are used. using a diagram in your response”. Structure of and relations in text Text is well-structured and coherent. Information is generally relevant and accurate though some gaps occur. Clarity. Diagram may not be placed in the appropriate part of the text. No description of diagram in text. Text is structured logically though some relations could be refined. Structure is weak and does not contribute to an effective text. Information is not relevant to task or there may be inaccuracies so that text does not effectively answer the question. Text adds meaning to the diagram. Expression is generally clear and accurate. so that response to task is complete. Page | 18 . “Write a short answer to the following question. Curves wrong shape or slope. Limited description of the diagram.