LO1: Identify and explain the key ideas that define economic way ofthinking and the maximisation of scarce resources.LO2: Analyse how prices are determined in a market.LO3: Compare and contrast the key characteristics of various marketstructures and market strategies adopted by firms in differentmarket environments.LO4: Differentiate the objectives and consequences of macroeconomicpolicy in Australia and debate the conflicts between theachievements of those objectives.LO5: Analyse economic fluctuations and Gross Domestic Product.LO6: Describe and discuss the concept and consequences ofunemployment.LO7: Examine the relationship between exchange rate and internationaltrade.LO8: Compare monetary policy and fiscal policy in a macroeconomicscontext.a) Explain the difference between a change in demand and a change in quantity demandedusing a graph.b) Discuss the factors affecting to quantity supplies and supply of a product.c) Read the following excerpt from media and provide answers to the questions below.a) Explain the difference between economic profit and accounting profit.b) What is the difference between law of diminishing marginal returns and economies of scale?c) Explain the shape of the marginal cost curve, average variable cost curve, average total costcurve and average fixed cost curve. What is the relationship between marginal cost curve andaverage variable cost curve?d) Microheat Pvt Ltd is producing microwave ovens. Consider the following cost schedule forMicroheat Pvt Ltd and answer the questions.a) Explain the three characteristics for a market to be: (i) perfectively competitive and (ii) monopoly.b) In graphs indicate a perfectly competitive firm earning profit and a monopoly firm earning profit.c) Using diagrams for monopoly market and perfectively competitive markets explain why Monopolywill always be a less efficient market structure compared to perfect competition.Question 5a) Explain four types of unemployment with an example for each type.b) Consider the following information extracted from Australian Bureau of Statistics.a) Discuss the main component of aggregate demand.b) Comment on the following statement:"GDP cannot be used as good indicator to measure the country's welfare".c) Use the Aggregate Demand – Aggregate Supply (AD-AS) model to explain the effect of thefollowing situation on real GDPi. Consumers are optimistic about the country's economy and increase their spending.ii. Price level increase.iii. A neighbouring country reduces the demand for exports due to a recession.iv. Government decreases its spending on infrastructure facilities.