Session 2021/2022, Semester 1 Coursework – Main

Module: Finance and the economy

Module Code:
AFE_4_FEC

Instructions to Students

Answer all five questions below.

The report should be 2,500 words in length ( 2000 words for economics, 500 for finance part ) . Marks are
allocated for each question and sub-question as indicated below. Harvard referencing should be utilised
with marks deducted if it is not used. Diagrams should not be copied and pasted, but drawn and labelled
using the Word drawing facilities. Word equation editor is to be used where appropriate.

The final upload date for the coursework is 14.00 p.m., Tuesday 4th of January 2022. The coursework
should be uploaded through the module Moodle site. You should upload one Word document which will
contain your answers to the questions
The Word document will be submitted through Turnitin automatically when submitting to the
assignment link.

Note: This assessment is given out subject to external examiner’s approval.

Introduction [5 Marks]
Part A: Economics.
Question One: [10 Marks]
There are two sets of conditions that contribute to the dynamism of capitalist economic
systems, one is economic and the other is Political.
Explain what economic conditions may hinder capitalism and what political or economic
conditions could enhance a dynamic capitalist economic system.
(10 Marks)

Question Two: [10 Marks]

The United Kingdom has experienced times of high and low inflation across History. The
causes for the rise and fall of inflation varied given the local and global economic
conditions. The given graph illustrates inflation for the period starting 1860 till 2015.
Observe the trends in rising and falling inflation explaining the different causes of these
trends.

Quantity Quantity
Price demanded supplied

(cents per kg) (millions of KG per week)

Question Three:[15 Marks]
30 160 80

40 150 90

50 140 100

60 130 110

70 120 120

80 110 130

90 100 140

100 90 150
The demand and supply schedules per Kilogram of potatoes are displayed in the above table.

a. What is the equilibrium price and equilibrium quantity per KG in the given market? (3 Marks)

b. If the price was 40 cents per KG, describe the situation in the market for potatoes and explain

What would happen to the price accordingly? (4Marks)

C. If the price was 80 cents per KG, describe the situation in the market for potatoes and explain

What would happen to the price accordingly? (4 Marks)

c. Use the above data to draw a graph with the correct labeling for the demand and supply in this

market. (4Marks)

Question Four: [15 Marks]

Assume you are starting a new business in a country of your choice and conduct a PESTLE analysis
to identify the Key political, economic, social, technological, legal and ethical conditions in the
given country that can impact your business. (Identify your business first)

I am w

Question Five: [10Marks]

a) Food is more important than roads to the public, yet the government chooses to provide
roads for the public and rarely provides food. Given your understanding of public and
common goods explain why? (5Marks )
b) The Fundamental cause of monopoly is barriers to entry. Discuss the main causes of
Monopoly.
(2.5Marks)
 c) Discuss various ways in which government policymakers might respond to the problems of
monopoly. (2.5Marks)

References [ 5 Marks ]
The following are key factors that are taken into account in the assessment of a report:

1. Evidence for extensive and in-depth reading of relevant literature (journal articles, textbooks, and
other relevant sources)
2. Understanding of the subject, as demonstrated by the ability to clearly explain the issues involved
and an awareness of alternative views on the topic.
3. Thorough grasp of theories and/or theoretical models (where appropriate) relevant to the topic, the
use of relevant concepts and (where appropriate) the use of diagrammatic analysis and/or
equations.
4. Good use of comprehensive, relevant, accurate and up-to-date factual/statistical material (where
this is appropriate).
5. Ability to think and to reason logically and consistently in the writing of the report.
6. Good use of a wide range of academic sources in the writing of the report, all of which have been
fully and comprehensively referenced in the bibliography.
7. Ability to write in clear and grammatically-correct English, with proper use of paragraphs including
both an opening/introductory paragraph that sets the scene and concluding paragraph bringing
together the issues discussed is the report.
8. Ability to come to a clear set of independent, yet intelligent and well informed, conclusions that
derive from the arguments contained in the rest of the report and the evidence cited.
9. The use of good written and communication skills in the presentation of the report, including
typing, spelling, punctuation, sentence construction, the drawing of tables, the presentation of
statistical material, the use of footnotes and the overall lay-out of the report.