Assessment: Individual Assignment
Task 1:
This task is on Microeconomics.
1) Go to LMS and download this short 12 minute video
https://www.youtube.com/watch?v=bBQVaRnHqLs
The link has also been sent to your email address and if you have any problems viewing it make sure you check with your friends or your teacher.
2) The video explains how different costs behave and relate to each other. After you have watched the video, fill in the missing information in the table below which describe the short run costs of an imaginary firm.
|
Output
|
TFC
|
TVC
|
TC
|
AFC
|
AVC
|
AC
|
MC
|
|
0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
8
|
|
10.0
|
|
|
|
|
|
|
|
|
|
|
|
4
|
|
2
|
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3
|
10
|
|
25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4
|
|
|
27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5
|
|
|
|
|
4.0
|
|
|
|
|
|
|
|
|
|
|
|
|
6
|
|
|
|
|
4.0
|
|
|
|
|
|
|
|
|
|
|
5
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8
|
|
|
|
|
|
5.75
|
|
|
|
|
|
|
|
|
|
|
|
9
|
|
48
|
|
|
|
6.44
|
|
|
|
|
|
|
|
|
|
|
|
10
|
|
70
|
|
|
|
|
|
3) After you have completed the table above, use the information to draw/plot the Average Fixed Cost (AFC), Average Variable Cost (AVC), Average Cost (AC) and the Marginal Cost (MC) in the graph below.
Note that e.g. MC of 4 is inserted in between output of 1 and 2. The other MC's should similarly be inserted in between whole output numbers e.g. MC of 5 is inserted bewteen output of 6 and 7 for greater accuracy.
Task 2 (about 250 words)
This task is on Macroeconomics.
Based on what you learnt in Chapter 13 Inflation, and Chapter 14 Simple Model of the Macroeconomy, explain Demand-Pull inflation and Cost-Push inflation by comparing them. Your answer is expected to include the following:
- diagrams of the two kinds of inflation which must be hand drawn, then scanned or photographed and copied into your word-document assignment;
- an explanation of how demand or costs influence price levels and giving two demand-pull and two cost-push examples.