SCHOOL OF

ASSIGNMENT COVER SHEET

STUDENT DETAILS

Student name: Trần Hữu Phước Student ID number: 20448989

UNIT AND TUTORIAL DETAILS

Unit name: Innovation, Enterprise and Society Unit number: 200917

Tutorial group: Tutorial day and time:
Lecturer or Tutor name: Doan Duc Minh

ASSIGNMENT DETAILS

Title:
Length: Due date: Date submitted:
Home campus (where you are enrolled):

DECLARATION

I hold a copy of this assignment if the original is lost or damaged.

I hereby certify that no part of this assignment or product has been copied from any other student’s work or from
any other source except where due acknowledgement is made in the assignment.
I hereby certify that no part of this assignment or product has been submitted by me in another (previous or
current) assessment, except where appropriately referenced, and with prior permission from the Lecturer /
Tutor / Unit Coordinator for this unit.
No part of the assignment/product has been written/produced for me by any other person except where
collaboration has been authorised by the Lecturer / Tutor /Unit Coordinator concerned.
I am aware that this work will be reproduced and submitted to plagiarism detection software programs for the
purpose of detecting possible plagiarism (which may retain a copy on its database for future plagiarism
checking).

Student’s signature: Phuoc

Note: An examiner or lecturer / tutor has the right to not mark this assignment if the above declaration has not been
signed.

ARO 00380 08/15

ANSWER SHEET – Write your answer here

QUESTION 1
Identify and describe 5 key economic assumptions of the classical economic theory. How does innovation
change the classical economic theory?

Answer:

5 Economic assumptions of the classical economic theory:

1/ Scarcity: While society's desires are limitless, all resources are finite.
2/ Trade-offs: Choices must be made due to shortage. Every option comes with a price tag.
3/ Self-interest: Everyone wants to make decisions that will provide them the most pleasure. Everyone is
motivated by their own “self-interest.”
4/ Costs and benefits: Every decision is made by weighing the marginal costs and benefits of each option.
5/ Graphs: Simplified models and graphs can be used to illustrate and analyze real-life events.

Simply said, innovation is described as a better method of doing things. Individuals and organizations
innovate in their goal-directed behavior, which is described as an individual's or an organization's endeavor
to achieve performance as assessed by a criterion, whether objective or subjective. The endeavor of a
company to maximize profits is an example of goal-directed behavior. Another example would be a
politician's attempt to win re-election. The endeavor of a consumer to select a purchase that is most pleasant
to his or her tastes is a third example based on a subjective criterion. The three examples of innovation
behavior outlined above all have a general link to classical economic theory. As a result, goal-directed
behavior and, by extension, innovation, span a wide spectrum of economic, political, and social activities.
In general, in order for an invention to be profitable, it must be innovative. Businessmen invented a large
variety of applications for spreedsheet analysis, for example, and the invention of spreedsheet software
became profitable. In the form of the development of new skills, much innovation involves the interaction
of invention and surface discovery. Consider the advancements in paper processing in the modern office.
The development of wordprocessing abilities and their dissemination through instruction manuals and
training courses was essential for the invention of wordprocessing as a typing replacement.

QUESTION 6
What is a universal minimum income or universal basic income?
"Retired employees in Vietnam currently find it hard to cover the living and medical expenses." (World
Bank, 2019). From your perspective, does this matter? Relate your answer to the idea of a universal basic
income scheme. Provide rationale.

Answer:

UBI is a government scheme in which every adult citizen receives a fixed amount of money on a regular
basis. A basic income system's goals are to reduce poverty and to replace current need-based social
programs that may require more bureaucratic engagement. Existing social security schemes' so-called
"welfare trap" can be avoided with a well-designed UBI. Many of today's welfare schemes come with
conditions. For example, if a person's income must fall below a certain threshold before they may qualify
for a benefit, beneficiaries must maintain their low-income status.

"Retired employees in Vietnam currently find it hard to cover the living and medical expenses." (World
Bank, 2019)

From my perspective, the mentioned issue does seriously matters. Obviously, the main reason comes from
the inflation particularly in VietNam. In detail, it is understandable that there is an small increase in the
retirement wage; however, it is increasing at slower rate then the increasing rate of the inflation. Thus,
retired employees will suffer from the economic situation then it is harder for them to cover the living
standard and medical expenses with higher price level. Above situation is applied for the retired employees
with retirement pension, what happend to people without financial support? Many Vietnamese elderly
continue to eke out a livelihood long into retirement age, scared of being a burden on their families, due to a
lack of financial security. Vietnam is currently one of the world's fastest-aging countries. It officially
entered the aging phase in 2011, when the population over 60 accounted for 10% of the total. However, the
social safety net for the elderly, such as pensions and other forms of assistance, can only cover 30% of
those in need. There is no other option for seniors without a pension, social security, or financial stability
than to continue working to make ends meet.
It is crucial to deliver a progamme such as Universial Basic Income (UBI) to support and guarantee the
basic standard living for retired population. Universial Basic Income not only reduce the burden of person
who don’t receive pension but also their family members. In terms of people with retirement wage, UBI
also provide them a better support to maintain living standard as well as medical expenses.