ASSIGNMENT # 2 ECON 1500 Macroeconomics The Faculty of Business INSTRUCTIONS You

Page 8 of 8 Assignment #2 ECON 204 – Intermediate Microeconomics DUE

Page 8 of 8

Assignment #2

ECON 204 – Intermediate Microeconomics

DUE JULY 26 by 11:59PM (Victoria time)

First Name:

Fist name

Last Name:

Last name

Student No.:

V00

Name(s) of fellow students you worked with:

General Instructions & Information:

Complete the assignment in this document using the text boxes provided. For questions involving calculations or figures, feel free to delete the text boxes and insert an image. Make sure any images inserted into this document are clear and legible.

Use the drop box title “Drop Box – Assignment #2” on our course Brightspace page under the tab “Course Outline & Assessment Information” to submit your assignment.

Your assignment must be submitted as either a Word or PDF document.

You must use the following naming format to upload your file: Last name_student number. For example: Chaffe_V00168629.

Only submit ONE document. 

If you worked with other classmates please indicate their full name(s) above.

In fairness to your fellow classmates who submit their work on time, I will deduct 15% per day for late assignments for a maximum of three days. After three days, I will not accept the assignment unless you have made other arrangements with me.

Total possible score is 60.

Part 1: True/False Explain (8 marks)

For each of the following questions, determine whether the statement is true or false and explain your reasoning in detail. Where appropriate, show calculations and provide definitions of important concepts to answer the question. Most of the mark will be awarded on the basis of the explanation. No marks will be awarded for answers without an explanation.

The unemployment rate is a measure of the prevalence of unemployment, and it is calculated as a percentage by dividing the number of unemployed individuals by all individuals currently in the population. Holding all else constant, a rise in employment will lead to a drop in the unemployment rate. (4 marks)

Insert answer here.

Lisa has no outstanding debt, and she currently works 1,500 hours a year at $20 per hour. The current real rate of interest is 2% and she consumes 95% of her income and saves the remainder. If Lisa’s substation effect of the real interest rate on savings is zero, an increase in the real interest rate from 2% to 5% will lead to an increase in consumption today of $42.86. (4 marks)

Insert answer here. Feel free to delete this text box and include an image of your calculations.

Part 2: Short Answer & Analytical Questions (20 marks)

For each of the following questions, write a detailed response and be sure to respond to the sub-questions. Where appropriate or if asked, use diagrams to support your answer.

In the 1970s, Alberta was hit by a modern-day gold rush thanks to the discovery of accessible oil deposits and the development of the oil sands. Oil sands development has been a pet project of the Alberta government ever since Peter Lougheed was premier in the 1970s. And it has paid off! The oil boom resulted in soaring oil prices and created more multi-millionaires than any time before. People from all over Canada flooded into Alberta daily in search of high paying jobs and to get a piece of the action. In 2007, the Newfoundland and Labrador government estimated that as many as 10,000 people had left Newfoundland and Labrador to work in Alberta.

In 2014, however, tables turned. After peaking in 2014, oil prices have plunged by about 75 percent and many people have left Alberta. Some have referred to the plunge in oil prices as “the death of the Alberta dream.” As a result, many of the people from Newfoundland and Labrador who fled to Alberta several years ago have now returned home. (10 marks)

Use labour supply and demand diagrams to illustrate the effect of the oil boom on the equilibrium real wage and the level of employment in Alberta and in Newfoundland and Labrador. (3 marks)

Insert answer here. You can delete this text box and provide images of your diagrams. NOTE: Be sure to draw separate diagrams: One for Alberta and another for Newfoundland and Labrador. Also, you must explain in words what happened to the equilibrium real wage rate and the equilibrium level of employment in both provinces.

Use labour supply and demand diagrams to illustrate the effect of the oil crash on the equilibrium real wage and the level of employment in Alberta and in Newfoundland and Labrador. (3 marks)

Insert answer here. You can delete this text box and provide images of your diagrams. NOTE: Be sure to draw separate diagrams: One for Alberta and another for Newfoundland and Labrador. Also, you must explain in words what happened to the equilibrium real wage rate and the equilibrium level of employment in both provinces.

Use the saving-investment diagram to analyze the effects of the discovery of the accessible oil deposits in the 1970s on real interest rates and desired national savings. (4 marks)

Insert answer here. You can delete this text box and provide an image of your diagram. You must also explain in words what happened.

Suppose the government of a large open economy (e.g., the United States) announces a major expansion of government spending to dig a tunnel to the earth’s core that will be financed entirely by borrowing. Show graphically and explain the effect this would have on the world real interest rate, national saving, investment, and the current account balance in equilibrium? How would your answer differ for an economy that is a small open economy such as Canada? (5 marks)

Insert answer here

Use information from the latest publication of The Daily on the Labour Force Survey, June 2021 published by Statistics Canada (https://www150.statcan.gc.ca/n1/daily-quotidien/210709/dq210709a-eng.htm) to answer the following questions (5 marks).

What was the unemployment rate for June of 2021? (1 mark)

Insert answer here

Of the major sectors, which sector is still the furthest behind pre-pandemic levels and by how much? (2 marks)

Insert answer here

Of the ten provinces in Canada, which province(s) had employment above its pre-pandemic level in June 2021? (1 mark)

Insert answer here

Of the four major types of employment (i.e., frictional, structural, cyclical, and seasonally), which type largely explains the reason for the sharp rise in unemployment (i.e., decline in employment) as a result of COVID-19? (1 mark)

Insert answer here

Part 3: Numerical and Analytical Problems (32 marks)

For each of the following questions provide a detailed response and show all calculations used to derive the final result where appropriate. For numerical questions, no marks will be awarded for solutions with no supporting calculations.

Jeeps”R”Us is a manufacturing company that produces toy jeeps. The price of each toy jeep is $5. Jeeps”R”Us faces the production function presented in the table below. (11 marks)

Number of Workers (thousands)

Number of Jeeps Produced (thousands)

0

0

1

8

2

15

3

21

4

26

5

30

6

33

What is the marginal product of labour (MPN) and the marginal revenue product of labour (MRPN) for the first worker and the fifth worker? (2 marks; 0.5 marks each)

Insert answer here. Feel free to delete this text box and include an image of your calculations and final answers.

How many workers will Jeeps”R”Us hire if the nominal wage is $38? What if the nominal wage falls to $22? (2 marks)

Insert answer here. Feel free to delete this text box and include an image of your calculations and final answers.

Graph the relationship between Jeeps”R”Us labour demand and the nominal wage. (2 marks)

Insert image here.

Graph the relationship between Jeeps”R”Us’ labour demand and the real wage. (2 marks)

Insert image here.

With the nominal wage fixed at $38, the introduction of a new automatic toy jeep maker doubles the amount of toy jeeps that the same number of workers can produce. What happens to labour demand and production? (3 marks)

Insert answer here.

Beaus, a local brewery in Ottawa, faces the following production function:

Y = 9K0.5 N0.5

where Y is total output, K is capital, and N is labour. Beaus faces a capital stock of 25

(K = 25) and a labour supply curve (NS) of:

NS = 100[(1-t)w]2

where t is the tax rate on labour income and w is the real wage rate.

The after-tax real wage rate is then equal to:

(1-t)w

Solve the following questions. (13 marks)

Derive Beaus’ marginal product of labour (MPN) function. (2 marks)

Insert answer here. Feel free to delete this text box and include an image of your calculations and the derived marginal product of labour function.

If the tax rate on labour income is zero, find the equation of the labour demand curve. HINT: Remember that the labour demand curve for an individual firm is the same as the MPN curve. We also know that firms want to maximize profit and the profit-maximizing amount of labour input occurs when MPN = w. (2 marks)

Insert answer here. Feel free to delete this text box and include an image of your calculations and the derived labour demand curve.

If the tax rate on labour income is zero, what are the equilibrium levels of the real wage, employment, and the full-employment output. (3 marks)

Insert answer here. Feel free to delete this text box and include an image of your calculations and corresponding answers.

If the tax rate on labour income is zero, what impact would a government imposed real wage of 1.5 have on the level of employment and the real wage? Explain. (3 marks)

Insert answer here.

What are the equilibrium levels of the real wage, employment, and the full-employment output assuming now that the tax rate is equal to 0.6? (3 marks)

Insert answer here. Feel free to delete this text box and include an image of your calculations and corresponding answers.

This question is from our course textbook (#6 on page 128). An economy has full-employment output of 600. Government purchases, G, are 120. Desired consumption and desired investment are:

Cd = 360 – 200r + 0.1Y

Id = 120 – 400r

where Y is output, and r is the real interest rate. (8 marks)

Find the equation relating desired national savings to r and Y. (2 marks)

Insert answer here. Feel free to delete this text box and include an image of your calculations and final equation.

Find the real interest rate that clears the goods market. (2 marks)

Insert answer here. Feel free to delete this text box and include an image of your calculations and final answer.

Government purchases rise to 144. How does this increase change the equation of desired national savings? Show the change graphically. What happens to the market-clearing interest rate? (4 marks)

Insert answer here. Feel free to delete this text box and include an image of your calculations, final answer, and graph.[supanova_question]

For the essay: select a country of your choice and compare and

For the essay: select a country of your choice and compare and contrast two technologies (which you are free to select) and explain how they might be harnessed to address an energy policy/sustainable development issue of your choice. Your essay should explore the specific patterns of innovation of the technologies you choose and how pathways of technical change might be influenced by policy. As appropriate, take into account the level of economic development and how it might influence the national system of innovation.

For example, you could draw on the lectures and seminars at the start of the module to articulate patterns of innovation, you could draw on lectures and seminars during the middle of the module to articulate policy problems and their potential solutions, and use material from towards the end of the course to address national characteristics, as appropriate.

The essay is due in Week 8, but in Week 1 you will start learning important concepts and theories for achieving this final outcome of the module. It is therefore important that you start thinking about your essay early so that you can reflect on the case as you are learning.

The required length of the essay is 2,500 words in total. A maximum of 10 per cent above or below the word limit is allowed. The executive summary, list of references, figures/diagrams, and table of contents do not count in the word limit.

The report shall be structured in the following way:

Executive summary (approx. 250 words, not included in the word count): here you summarise the main argument of the essay, and introduce the two technologies, policy problem and national setting that you have adopted.

Introduction (approx. 500 words): here you provide some general background for the country of your choice and explain the chosen energy policy/sustainable development issue that you are addressing in the essay.

Main body (approx. 1,200 words): here you explore the specific patterns of innovation of the technologies you have chosen and compare and contrast them to illustrate how they differ. You should also identify key policy issues and how they might best be addressed so as to effectively influence patterns of innovation. You should only draw on frameworks from the course for the main analysis, but feel free to include contextual information from your own reading.

Discussion and Conclusion (approx. 800 words): in your final section you should reflect back on the strengths and weaknesses of policy implications you have drawn, the frameworks that you have used, and how they relate to your central argument.

References (not included in the word limit): here you list all the sources you have cited throughout your text. You must provide references in Harvard referencing format. For this, the use of a reference management software (such as Mendeley, Endnote or Citavi) is strongly recommended. Be sure to only include references for those documents you have cited in the text.[supanova_question]

Question (there is only one question to answer for this assignment): The

Writing Assignment Help Question (there is only one question to answer for this assignment):

The past two modules have illustrated the extent to which hip-hop is popular around the world.  But a globalized musical culture doesn’t come without a price. In a response of 3-6 sentences, present possible criticisms to the proliferation of hip-hop globally.  Consider issues such as cultural appropriation, the status of local musical traditions, and fidelity to the original aims of hip-hop.

To submit this assignment, please type directly into the text box provided.  There is no need to attach any files.

Rubric

This question is for a maximum of 2 points. 

2 – You respond to the question in a satisfactory fashion, demonstrating that you have read and/or listened to assigned reading and listening, respectively, and have paid attention in class.  Your responses are in complete sentences (i.e., no outlines, sentence fragments, bullet points, etc.).

1 – Your answer approached where it needed to be, but could have provided more information indicating that you indeed did the assigned reading and listening, and attended (or watched recordings of) class meetings.

0 – Your answer did not demonstrate familiarity with the concepts covered in the question, and it is not clear from your response that you did the assigned reading and listening, and/or attended classes where this material was discussed. [supanova_question]

FNSACC514_AT2_MC_TQOL_V1 Marking criteriea Briefly describe benefits of using visual display to present

FNSACC514_AT2_MC_TQOL_V1

Marking criteriea

Briefly describe benefits of using visual display to present financial information in financial reporting.

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Identify and explain the key principles of double-entry bookkeeping and accrual accounting.

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Discuss ethical considerations in relation to conflict of interest, confidentiality and disclosure requirements.

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Explain the key features of integrated computerised accounting systems, and how they assist to present financial data formatted to both organisational and industry standards.

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Outline options, methods and practices for recording and reporting deductions, benefits and depreciation.

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Identify and explain business legal requirements relating to delegated authorities, reporting periods and taxation payment timings.

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(Task 1) Prepare a Statement of Cash Flows in accordance with accounting standards.

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(Task 2) Prepare a statement reconciling cash flows from operating activities with profit.

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123 TMP H – Assessment Template – Marking Criteria v1.3 Page 2 of 2

123 TMP H – Assessment Template – Marking Criteria v1.3 Page 1 of 1[supanova_question]

Instructions General Instructions: Answer all seven (7) questions including all individual tasks

Instructions

General Instructions:

Answer all seven (7) questions including all individual tasks within the questions in this booklet.

State clearly in each question any assumptions you believe need to be made if additional information is required. Include these assumptions in your answers or in your working papers which are to be submitted with your answers.

Assessment Criteria:

To achieve a satisfactory result, your assessor will be looking for your ability to demonstrate the following key skills/tasks/knowledge to an acceptable industry standard:

Describe benefits of using visual display to present financial information in financial reporting

Identify and explain the key principles of double-entry bookkeeping and accrual accounting.

Discuss ethical considerations in relation to conflict of interest, confidentiality and disclosure requirements.

Explain the key features of integrated computerised accounting systems.

Outline options, methods and practices for recording and reporting deductions, benefits and depreciation.

Identify and explain business legal requirements relating to delegated authorities, reporting periods and taxation payment timings

Prepare a Statement of Cash Flows in accordance with accounting standards.

Prepare a statement reconciling cash flows from operating activities with profit.

Please answer the following questions.

Questions

Briefly describe benefits of using visual display to present financial information in financial reporting. Describe some examples of visual display which are commonly used in financial reports. (Hints: Check the internet for information, following are few recommended websites for your reference :

https://www.edrawsoft.com/choose-diagram.php

https://www.mindtools.com/pages/article/Charts_and_Diagrams.htm

Read “Accounting Principles and Accrual Accounting” and “Accounting for GST” located in the Supplementary resources section in Connect site.

Identify and explain the key principles of double-entry bookkeeping and accrual accounting. Please note the principles should also include all conventions, policies and bases.

Tax professionals are required to comply with the Tax Practitioners Board’s Code of Professional Practice. Discuss ethical considerations in relation to conflict of interest, confidentiality and disclosure requirements as outlined in the Code.

Explain the key features of integrated computerised accounting systems, and how they assist to present financial data formatted to both organisational and industry standards.

Some accounting items are treated differently under tax legislation than under accounting standards. Outline the different treatments, options, methods and practices for recording and reporting expenses/deductions, benefits and depreciation.

Identify and explain business legal requirements relating to delegated authorities, reporting periods and taxation payment timings.

Question 7

The following are the financial statements of North Point Enterprises for the year ended 30 June 2016

North Point Enterprises Ltd

Income Statement

for year ended 30 June 16

$

$

Sales

250,000

Less Cost of Goods Sold

Inventories (1/7/15)

14,500

Purchases

135,000

149,500

Less Inventories (30/6/16)

8,000

141,500

108,500

Less Operating expenses

Advertising

12,300

Wages

28,000

Loss on sales of equipment (piece B)

2,000

Depreciation of equipment

12,000

Depreciation of Motor Vehicle

8,000

62,300

$46,200

Question 7 continued

North Point Enterprises Ltd

Balance Sheet

2016

2015

Current Assets

$

$

$

$

Cash at Bank

55,000

21,500

Inventories

8,000

14,500

Accounts Receivable

78,700

42,300

Prepaid Advertising

3,200

1,200

144,900

79,500

Non-Current Assets

Equipment

46,500

66,500

Less Accum Depreciation

22,000

24,500

18,000

48,500

Motor Vehicles

44,000

44,000

Less Accum Depreciation

26,000

18,000

18,000

26,000

Total Non-Current Assets

42,500

74,500

TOTAL ASSET

187,400

154,000

Less Current Liabilities

Accounts Payable

34,900

57,700

Net Assets

$ 152,500

$ 96,300

Owner’s Equity

Paid up Capital

95,300

85,300

Retained Profit

57,200

11,000

$152,500

$96,300

Additional information

Important Note: The sale of equipment (piece A) had a historical cost of $20,000 and accumulated depreciation of $10,000. It was sold for cash of $10,000.

GST is not included so ignore the GST component of transactions.

You are required to:

a) Prepare a Statement of Cash Flows for the year ended 30 June 2016 in accordance with accounting standards.

b) Prepare a statement reconciling cash flows from operating activities with profit.

Use the format/template on the following page for your answer.

Suggested Template for Question 7:[supanova_question]