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    ECO111 - Test 01 - Individual Assignment 01

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    Khánh An
    This document provides instructions for an economics assignment for a Microeconomics class (ECO111). It lists the class name, when the assignment was handed out and when it is due, the required file format for submission, and the email for electronic submission. It also includes spaces for the student's name, student ID number, class, and a signature from the proctor to mark the assignment. The assignment contains two questions, with the first asking students to calculate opportunity costs and analyze a special deal on pizzas to determine how many should be purchased. The second question asks students to define and provide examples of absolute and comparative advantage, and analyze trade relationships between multiple countries. It concludes by asking students to write 500-word essays on

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    ECO111 - Test 01 - Individual Assignment 01

    Uploaded by

    Khánh An
    16 views4 pages
    This document provides instructions for an economics assignment for a Microeconomics class (ECO111). It lists the class name, when the assignment was handed out and when it is due, the required file format for submission, and the email for electronic submission. It also includes spaces for the student's name, student ID number, class, and a signature from the proctor to mark the assignment. The assignment contains two questions, with the first asking students to calculate opportunity costs and analyze a special deal on pizzas to determine how many should be purchased. The second question asks students to define and provide examples of absolute and comparative advantage, and analyze trade relationships between multiple countries. It concludes by asking students to write 500-word essays on

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    ECO111_Test-01_Individual-Assignment-01

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    This document provides instructions for an economics assignment for a Microeconomics class (ECO111). It lists the class name, when the assignment was handed out and when it is due, the required file format for submission, and the email for electronic submission. It also includes spaces for the student's name, student ID number, class, and a signature from the proctor to mark the assignment. The assignment contains two questions, with the first asking students to calculate opportunity costs and analyze a special deal on pizzas to determine how many should be purchased. The second question asks students to define and provide examples of absolute and comparative advantage, and analyze trade relationships between multiple countries. It concludes by asking students to write 500-word essays on

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    16 views4 pages

    ECO111 - Test 01 - Individual Assignment 01

    Uploaded by

    Khánh An
    This document provides instructions for an economics assignment for a Microeconomics class (ECO111). It lists the class name, when the assignment was handed out and when it is due, the required file format for submission, and the email for electronic submission. It also includes spaces for the student's name, student ID number, class, and a signature from the proctor to mark the assignment. The assignment contains two questions, with the first asking students to calculate opportunity costs and analyze a special deal on pizzas to determine how many should be purchased. The second question asks students to define and provide examples of absolute and comparative advantage, and analyze trade relationships between multiple countries. It concludes by asking students to write 500-word essays on

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    © All Rights Reserved
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    Download as doc, pdf, or txt
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    ECO111 Microeconomics

    Class: MKT1712
    Handed out:
    Submission due:
    Format: .pdf file
    Submission mode:
    Email to:

    Student Information
    Name: PHẠM THANH TÙNG Roll number: 0388808875
    Room No: Class: MKT1712

    FOR TEACHER ONLY


    MARK MARKED BY Signature of Proctor
    (NAME AND SIGNATURE)

    Individual Assignment 01

    Question 1. (2 points)

    1. What is your opportunity cost of each of the following?


    a. Attending your next economics class meeting.
    Answer: earning money at work
    b. Skipping your next economics class meeting.
    Answer: my knowledge in economics
    c. Taking an all expenses paid trip to the Lasvegas for a week during this semester.
    Answer: time with my friend and family

    2. The local pizza restaurant is advertising a special. If you buy one individual sized pizza,
    you get the next one at 25% off, the third one for 50% off and the fourth one for 75% off.
    Your marginal benefit from eating pizza is shown in the table below. If the price of a pizza
    is $6, how many should you buy? (3 points)
    Answer: 1 pizza

    No of pizzas MB (Marginal Benefit)


    0 0
    1 7
    2 4
    3 2
    4 1
    3. The workers in a factory currently earn $120 for a 39 – hour week. The management
    offers them a choice between either a straight 10% wage increase or an increase in the
    weekly wage to $125 coupled with a reduction in hours from 39 to 37 hours. What is the
    opportunity cost to each worker of opting for the 37 – hour week?
    Answer: $7

    Question 2. (3 points)

    1. a. What is defined as absolute advantage?


    Answer : is the ability to produce a good using fewer inputs than another.
    b. What is defined as comparative advantage?
    Answer : is the ability to produce a good at a lower opportunity cost than another.
    c. Case 1: Output approach
    Two commodities and two countries
    Given the resources, Singapore and Malaysia can produce the following products –
    television sets and cars (see Table 01)
    Countries TV sets Cars (units)
    Singapore 100 50
    Malaysia 60 40
    Table 01
    + Which country has the absolute advantage in the production of both TV sets and
    Cars over the other?
    Answer : Singapore.
    + Which country has the comparative advantage either in the production of TV sets
    or in the production of Cars over the other?
    Answer : Malaysia has the comparative advantage in the production of TV sets.
    d. Case 2: Input approach
    Two commodities and two countries
    Give the resources, America and England can produce one unit for both Steel and
    Coal in terms of number of working hours shown as follows:
    Countries One unit of Steel One unit of Coal
    required required
    America 80 man-hours 90 man-hours
    England 120 man-hours 100 man-hours
    Table 02
    + Which country should specialize in the production of Steel?
    Answer : England
    + Which country should specialize in the production of Coal?
    Answer : America
    e. Case 3: Input approach
    Two countries but multiple commodities
    The following Table 03 shows the numbers of man – days taken to produce an
    equivalent amount of six commodities in each of the two countries – Switzerland
    and Sweden.
    Countries Coal Cotton Wool Iron Wheat Maize
    Switzerland 120 60 70 100 140 80
    Sweden 100 25 35 90 90 20
    Table 03
    + Assuming that there are no other costs of production. Which two commodities is
    Sweden most likely to import from Switzerland?
    Answer : Maize and Cotton

    Question2. (5 points)
    + What are the benefits/gains from international trade? Write an essay with 500 words and
    provide your answers with real example in the context of Vietnam international trade
    relations
    International trade has many benefits. First of all, it will increased revenues. You might be
    able to boost the amount of people interested in your services. Each nation you add to list
    might pave the door for new income opportunities and business success. On the other hand,
    it will decreased competition. In Vietnam, your goods and services may have to compete in
    a crowed market, but in other nations, you may discover that you have less competition.
    The next is it has longer product lifespan. Certain items sales might fall in Vietnam as
    people cease buying them or switch to newer versions. Fourthly, easier cash-flow
    management. One of the unspoken benefits of overseas trading may be getting paid in
    advance. When dealing globally, it's common to request payment in advance, however at
    home, you may need to be more creative in managing cash flow while waiting to get paid.
    Expanding your firm internationally might help you better manage your cash flow. Fifthly,
    benefiting from currency exchange. Currency swings may help those that diversify their
    holdings with foreign trading. When the Vietnam Dong is weak, for example, you may be
    able to export more because international consumers profit from the lower currency
    exchange rate. Another benefit of foreign trading is that you might be able to take
    advantage of export finance. The Export-Import Bank of the United States (EXIM) and the
    Small Business Administration of the United States are two organizations to look into for
    export finance. Seventhly, You could have a place to sell surplus items that you can't sell in
    your home market. The next, doing business in different nations might help you build a
    better reputation for your firm. Success in one nation might have an impact on success in
    neighboring countries, raising your company's visibility in your market segment. It can also
    help your organization gain reputation both at home and internationally. This is one of the
    benefits of international commerce that is hard to measure and so easy to overlook.
    + What are the disadvantages of international trade? Write an essay with 500 words and
    provide your answers with real example in the context of Vietnam international trade
    relations
    Besides the benefits, international trade also has many disadvantages. First of all,
    disadvantages of International Shipping Customs and Duties. Shipping packages practically
    anywhere in the globe is simple with international shipping businesses.However, one of the
    drawbacks of international trade is that the majority of these destination nations' customs
    authorities levy additional costs on commodities sent to them. Larger packages may not be
    cost feasible to send using these carriers. Companies might use freight-forwarding firms to
    assist them save money or handle the extensive paperwork that is necessary. On the other
    hand, language barriers also are a disadvantage. International shipping companies make it
    simple to transport items almost anywhere on the planet. The majority of these destination
    countries' customs administrations charge extra fees on goods transported to them. Larger
    shipments may be too expensive to transport using these carriers. Freight-forwarding
    companies may be used by businesses to help them save money or manage the substantial
    paperwork that is required. The next is cultural differences. Unwritten norms of trade exist
    in the country, which are difficult to unearth and even more difficult to solve. In Western
    societies, for example, the word "yes" usually denotes agreement. However, in some
    Eastern cultures, it might imply that the individual understands but does not necessarily
    agree with what you are saying. Fourthly, servicing customers also is a disadvantage. How
    will overseas clients be served once they make a purchase when they are so far away? To
    address one of the fundamental drawbacks of international trading, linguistic and cultural
    differences must once again be recognized. Your organization must be ready to connect
    with these consumers in multiple time zones, preferably in their native tongue, from the
    start. If you don't have the resources to staff 24 hours a day, set expectations for when you'll
    get a response up front. The next is returning products. Because not all foreign consumers
    will be happy with a company's products, a mechanism for returning them and processing a
    refund must be in place. Although credit cards and internet financial tools have made the
    financial side of the issue easier, the actual return shipping can be just as complex and
    costly as it was before. A business must consider how a product will be returned and who
    will pay for the shipping costs. Companies will sometimes give a consumer a refund rather
    than requiring the item to be returned because the cost is too expensive. Every business
    should plan ahead of time for its return policy. Finally, Intellectual Property Theft. The
    greater the reach of a product, the more probable it is to be unlawfully copied by a rival.
    This might take the shape of confidential data or market branding. It is extremely difficult
    for a firm to prosecute when there are cross-country borders. Copyrighting in the United
    States, on the other hand, can assist a corporation defend itself if the country where the
    product is marketed has signed an international intellectual.

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