This assignment is designed to assess your level of achievement in the following course objectives: demonstrate understanding of key concepts of economics; identify and interpret patterns evident in economic data presented in graphs and tables; explain and apply key economic concepts to business and economic decision making; evaluate selected instruments of microeconomic policy; explain major problems faced by economic and business managers in the 21st Century; and demonstrate academic research and writing, and critical analysis and thinking skills. The question is also intended to provide an example of the kind of ‘short answer’ and ‘extended response’ questions that will appear on the final examination paper. Please note the following points in relation to your answer: Write about 1700 words in total (excluding reference list). While questions 1, 2, and 3 are in short answer format, the answer to question 4 should be in essay format, using the Harvard style of referencing. For the essay question, write concisely. Get to the point so you can include as many new ideas and arguments as possible. But remember, one point per paragraph and one idea per sentence. For the essay question, write an introduction to say what you will discuss and a conclusion which sums up the discussion and clearly shows answers to all parts of the question. Remember, before you start writing, break the question into its parts so that you understand everything you have to do. Edit your work. Do not repeat information except to summarise at the end. It is good practice for you to write in a way that provides maximum information in a minimum of space. This is what you are expected to do in the exam, though you won’t have to use references. Remember, the extended response section of the final exam comprises 20 per cent of your total mark for this course and some students just do not write enough solid and relevant material. Use appropriate assumptions where required. These may help you to simplify any complexity. Selecting appropriate assumptions in economics is considered as a way of making an economic analysis (often called a model) simpler without affecting any of its important conclusions. Use relevant diagrams wherever possible (for all questions). These are the conventional way in which things are discussed in economics. Fully label diagrams, shift parts of the diagrams to illustrate key points and then explain what is occurring. Use the textbook to get started. Do some extra reading, from other introductory texts, the Web, newspapers or journals to expand on the initial reading. Your answer for question 4 should contain at least five different relevant references including at least one journal article. Reference the textbook when you use it for information.