Assignment: Economics Principles
Learning Outcomes
a. Demonstrate their understanding of fundamental problem of scarcity facing in an economy.
b. Apply the microeconomic concepts of demand and supply, price elasticity, market failure, cost and revenue concepts as well as market structures.
d. Explain the importance of economic models and key assumptions in economics.
e. Apply economic models and assumptions to analyse a given situation and/or media articles on economic issues.
Description
Students are required to produce the assignment and provide the relevant economic analysis, by critically analysing the "Mapping Australian higher education 2016" article using the microeconomics concepts learned at weeks 1- 4.
This requires students to use appropriate economics terminology, concepts, models and diagrams, and carry out additional research relevant to the topic/economic concepts covered. Reference requirement is at least 3 references from peer reviewed journal articles (Wikipedia sources are not accepted).
Assignment needs to answer the following questions by examining the relevant pages of the report:
1. Discuss what is the product/service referred to in the report? Is the product elastic or inelastic?
2. What is the supply demand and market like for this product/service? (see pages 92-98)
3. What are the possible substitute and/or complementary products for the one mentioned in the report?
4. Are the Positive or Normative statements mentioned anywhere?
5. Do you observe any indication of shift in demand/supply and where do you believe the equilibrium happens?
6. What is the influence of tax on the product/service? (See pages 44-47).
7. Surplus/shortage of the product/service in Australian higher education
8. When appropriate provide appropriately labelled graphs for above questions.
Mapping Australian higher education
Australia has 40 full universities, and around 130 other higher education providers. Their revenues in 2014 approached $30 billion, making higher education a significant industry. Although Australian universities have increased their private income since the 1980s, they still rely on government. Nearly 60 per cent of their cash flow is government grants or loans. While major increases in higher education public funding are unlikely, the Commonwealth Government makes a significant investment in higher education.
In 2014, nearly 350,000 international students took courses with Australian universities. Domestic enrolments exceeded one million for the first time. For domestic students, humanities and commerce remain the most popular fields of study, but health and science enrolments show the fastest growth. Despite slower transitions from university to career, the unemployment rate for all graduates remains low. Over their working lives, graduates on average earn significantly more than people who finish their education at Year 12.
Source:
Norton, A. (2016) Mapping Australian Higher Education 2016, GRATTAN Institute, p3.