THE OPEN UNIVERSITY OF SRI LANKA

DEPARTMENT OF SOCIAL STUDIES

BA DEGREE PROGRAMME IN SOCIAL SCIENCES
LEVEL III (SEMESTER II) – 2019/2020
ALTERNATIVE FINAL ASSESSMENT
DSU3532 – PRINCIPLES OF ECONOMICS - 2

Date: 18.12.2020 Submission Deadline: 02.01.2021 (11.55 PM)

Instructions
• Answer ONE (01) Question Only.
• You will be tested on your familiarity with the course content and your ability to
apply what you have learnt to understand, explain, and analyse a situation or problem.
• Limit your answer to 1500-2000 words.
• Copying and plagiarism will be strictly penalized.
• All essays must be word processed.
• Use given “answering sheet of the Final Examination” to type your essay.
• Before you answer the question you should read the “Guidelines to Alternative
Final Assessments 2019/2020” shared in Elearn platform.
• Each answer carries 100 marks. Detailed marking criteria are given below.

QUESTIONS

1) Mr. Perera intends to start his own business by producing some goods to the
market. As he has little knowledge in Economics, Perera approaches you to get
advice on his business. Based on the knowledge you have acquired in the areas of
production and market structures what advice you would provide Mr. Perera as to
how he should choose the best good to be produced.

OR

2) It is a known fact that Sri Lanka has experienced a budget deficit in the recent
past. Also, with the outbreak of the COVID 19 virus the financial status of the
economy has been further degraded. Discuss the implications of a prolonged
budget deficit and recommend (according to your view) strategies that the
government should adopt to minimize the harmful effects of huge budget deficits
in the future.

Detailed marking criteria:

Exhibition of fundamental theoretical and conceptual knowledge : 40
Organisation of the essay : 20
Logical and convincing development of arguments : 20
Originality and development of a perspective : 20

********Copyrights Reserved*********