Suppose that there are two products: clothing and soda. Both Brazil and the United States produce each product. Brazil can produce 100,000 units of clothing per year and 50,000 cans….
Explain in detail the changes in consumer preference for dining out at restaurants and cooking meals at home
This Individual Assignment relates to the following Learning Outcomes:
•Knowledge and Understanding: recognise how principles of microeconomic is relevant in understanding decision-making by economic agents.
•Problem solving and critical thinking: Demonstrate creativity and critical thinking and the ability to apply theoretical understanding of microeconomics to real life economic problems.
•Ethics: Demonstrate ability to evaluate economic theory and real world applications in the context of equity considerations.
•Communication: Develop communication skills to
effectively demonstrate the understanding of economic ideas and professional presentation with the help of quantitative and visual support.
DOCUMENT PREPARATION GUIDELINE:
Please make sure that All questions are answered with the working, diagrams and reasoning where needed with answers typed using a Word Processor (e.g. MS Word). All answers are
presented in proper sequence of the assignment and in clear language. All diagrams are drawn clearly and fully labelled
. Please read the Assignment Rubric and make sure that the answers are up to the criteria .
Question 1 (5 Marks):
In Australia, the government provides childcare subsidy to anyone earning less than $350,000 a year (read the article from the link below for detail) https://www.news.com.au/lifestyle/parenting/what-the-child-care-changes-mean-for-you/news-story/75447014c6e02d23f2b6aec34711e5d9
a) Assume that Doreen’s family earns $60,000 a year and currently they spend $10,000 on childcare service, and the remaining of income on other goods. Using a diagram,
illustrate Doreen’s family’s optimal bundle (before a subsidy from the government),knowing that her family would never spend more than 50% of the income on childcare service.
b) With a subsidy of 85% of the total childcare cost from the government, would this optimal bundle change?
Question 2 (5 Marks):
Explain in detail the changes in consumer preference for dining out at restaurants and cooking meals at home using the below article. Article for this question will be uploaded.
Question 3 (5 Marks):
The following article (see the link) claims that “When [taxes] went up [countries] did very poorly and when they went down, they did very well”. From consumers’ perspective, how does an increase in income tax rate affect consumers’ choice between labor and leisure, and consumers’ utility? Explain with the help of a Budget Line – Indifference Curve diagram.
Article for this question will be uploaded.
Question 4 (5 Marks):
According to the article “Automation and Anxiety” what types of job have a high degree of substitutability of capital (or
automation) for labor (or workers)?