Micro and Macro Economics

  SECTION A (50% of overall mark) - Microeconomic Analysis Consider a duopoly market in Cournot competition: 1. Discuss which factors may lead to only two firms operating in the market. (20 marks) 2. Analyse how the market equilibrium changes if a new firm enters the market. In particular, consider the impact on the incumbent firms, the market as a whole, and on consumer welfare. (30 marks) In answering these questions, provide diagrams and examples. ` Word Limit: 1000 Recommended resources: ? Perloff, Microeconomics, Chapter 13 (Oligopoly and Monopolistic Competition) ? Varian, Intermediate Microeconomics, Chapter 28 SECTION B (50% of overall mark) - Macroeconomic Analysis With reference to the ‘IS-MP Model’, discuss the implications of a demand shock for output and the interest rate of an economy. Provide diagrams and numerical examples to support your arguments and define all variables you use. In addition, provide a thorough explanation of the setup of the model as well as its solution and discuss, how a change in the interest rate elasticity of investment will affect the solution. Word Limit: 1000 Recommended resource: ? Jones, C. I. (2017), Macroeconomics, 4th International Student, Edition, WW Norton & Company, pp 70-101 Assessment Information This assignment is designed to assess learning outcomes:  Demonstrate an understanding of the intermediate principles of microeconomics and macroeconomics  Apply appropriate theoretical models to analyse economic questions and policy issues  Compare and contrast alternative models of economic behavior  Appraise the relative merits of different economic policy options  Demonstrate their ability to communicate logical arguments  This assignment is an individual assignment. This assignment requires you to answer all questions of section A (Micro) and B (Macro). Each section is worth 50% of the overall CW mark. Criteria for Assessment  Comprehensiveness - To what extent is the answer comprehensive (given the time allowed)?  Line of Argument - To what extent is the line of argument and/or derivation of results clear and self-contained?  Terminology - To what extent are economic terms used in an appropriate and/or correct way?  Accuracy - To what extent is the answer accurate and/or correct? Word Count The word count is 2000. There will be a penalty of a deduction of 10% of the mark (after internal moderation) for work exceeding the word limit by 10% or more. The word limit includes quotations, but excludes the bibliography. How to submit your assessment Assignment Brief Template Page 2 of 3 The assessment must be submitted by 18.00:00 on 2nd July 2018. No paper copies are required. You can access the submission link through the module web.  Your coursework will be given a zero mark if you do not submit a copy through Turnitin. Please take care to ensure that you have fully submitted your work.  All work submitted after the submission deadline without a valid and approved reason (see below) will be given a mark of zero.  Students MUST keep a copy and/or an electronic file of their assignment. Extension and Deferral process  The University wants you to do your best. However we know that sometimes events happen which mean that you can’t submit your coursework by the deadline – these events should be beyond your control and not easy to predict.  If this happens, you can apply for an extension to your deadline for up to two weeks, or if you need longer, you can apply for a deferral, which takes you to the next assessment period (for example, to the resit period following the main Assessment Boards). You must apply before the deadline.  You will find information about the process and what is or is not considered to be an event beyond your control at https://share.coventry.ac.uk/students/Registry/Pages/Deferrals-and-Extension.aspx GUIDELINES AND BACKGROUND TO THIS ASSIGNMENT Plagiarism Checks will be made on your work using anti-plagiarism software and approved plagiarism checking websites. As part of your study you will be involved in carrying out research and using this when writing up your coursework. It is important that you correctly acknowledge someone else’s writing, thoughts or ideas and that you do not attempt to pass this off as your own work. Doing so is known as plagiarism. It is not acceptable to copy from another source without acknowledging that it is someone else’s writing or thinking. This includes using paraphrasing as well as direct quotations. You are expected to correctly cite and reference the works of others. The Centre for Academic Writing provides documents to help you get this right. If you are unsure, please visit www.coventry.ac.uk/caw. You can also check your understanding of academic conduct by completing the Good Academic Practice quiz available on Moodle. Moodle includes a plagiarism detection system and assessors are experienced enough to recognise plagiarism when it occurs. Copying another student’s work, using previous work of your own or copying large sections from a book or the internet are examples of plagiarism and carry serious consequences. Please familiarise yourself with the CU Harvard Reference Style (on Moodle) and use it correctly to avoid a case of plagiarism or cheating being brought. Again, if you are unsure, please contact the Centre for Academic Writing, your Academic Personal Tutor or a member of the course team. Return of Marked Work You can expect to have marked work returned to you within 15 working days for level 1 and 2, 10 working days for level 3 and M level). If for any reason there is a delay you will be kept informed. Marks and feedback will be provided online/in class/face to face. Marks will have been internally moderated only, and will therefore be provisional; your mark will be formally agreed later in the year once the external examiner has completed his / her review. Assignment Brief Template Page 3 of 3 SECTION A (50% of overall mark) - Microeconomic Analysis Consider a duopoly market in Cournot competition: 1. Discuss which factors may lead to only two firms operating in the market. (20 marks) 2. Analyse how the market equilibrium changes if a new firm enters the market. In particular, consider the impact on the incumbent firms, the market as a whole, and on consumer welfare. (30 marks) In answering these questions, provide diagrams and examples. ` Word Limit: 1000 Recommended resources:  Perloff, Microeconomics, Chapter 13 (Oligopoly and Monopolistic Competition)  Varian, Intermediate Microeconomics, Chapter 28 SECTION B (50% of overall mark) - Macroeconomic Analysis With reference to the ‘IS-MP Model’, discuss the implications of a demand shock for output and the interest rate of an economy. Provide diagrams and numerical examples to support your arguments and define all variables you use. In addition, provide a thorough explanation of the setup of the model as well as its solution and discuss, how a change in the interest rate elasticity of investment will affect the solution. Word Limit: 1000 Recommended resource:  Jones, C. I. (2017), Macroeconomics, 4th International Student, Edition, WW Norton & Company, pp 70-101