Question 1. Globalisation of the world economy has significantly improved our living standards. However, there are growing concerns, particularly in developed countries like Australia, that increased globalisation and outsourcing has significantly undermined the survival of the manufacturing industry such as motor vehicle industry in developed countries like Australia. It is in this context, answer the following questions:

(a) Do you support the idea of globalising the Australian economy? Why. Why not? In writing your answer, wherever possible, back up your arguments with the theory, research articles or statistical evidence.

(b) Also, discuss who gains and losses from globalisation.

Word limit: About 1000 words.

Question 2. Globally food price has increased during the past year. It is in this context answer the following questions:

(a) Explain why the law of demand applies to food just as it does to all other goods and services.

(b) Explain how the substitution effect influences food purchases. Provide some examples of substitutions that people might make when the price of food rises and other things remain the same.

(c) Explain how the income effect influences food purchases and provide some examples of the income effect that might occur when the price of food rises and other things remain the same.

Word limit: About 500 words.

Question 3. Prices of houses in Australian metropolitan cities, particularly in Darwin, Sydney and Melbourne are on the rise in recent year, which is mainly due to surging land prices. It is in this context, answer the following questions:

(a) Why is the land price rising in the metropolitan cities and what are the major drivers of rising house prices in these cities.

(b) Using an appropriate diagram, explain your answer in part (a) above.

(c) Is the supply of land in in the metropolitan cities perfectly inelastic? Why? Discuss.

Word limit: About 500 words.

need references also