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Code Title / Subject
ECA0051 Explain what supply and demand curves indicate. Show how they can be used to reveal how a market clears.  Using diagrams, show also what might happen to prices and quantities for a normal good if, over several periods of time, there are steady increases in income per head and in technical progress: Where there is demand there is a supplier and sometimes suppliers can create demand. There are many factors that influence demand for goods and services in the market place; some are the result of natural demand born of basic necessity or perceived needs, and however firms can create desire for a product through the study and manipulation of the forces in demand and supply. Every firm which provides goods or services to fee paying customers must, by its very nature, charge a price for that good or service, to pay for its costs, have retained profits for investments and to keep its shareholders happy [2,000 words]
ECA0052 Outline and evaluate the different devices that a monopolist can use to extract extra surplus from consumers when consumer type is not directly observable: Consumers have different tastes and are not all willing to pay the same price for the same goods. This turns out to be a problem for the monopolist if he wants to engage in price discrimination, as he needs to identify various levels of willingness to pay. In this paper we shall look at the different devices that a monopolist can use to extract extra surplus from consumers when consumer type is not directly observable. In the second part of this essay we shall analyse the ways in which the existence of secondary markets affects the monopolist’s ability to price discriminate. In conclusion, we shall consider how the monopolist can interfere in those secondary markets. Before we start tackling the problem of how a monopolist is able to price discriminate when consumer type is not directly observable, we should first briefly define what a monopolist is. A seller is said to be a monopolist when he produces a good or a service for which there is no close substitutes [2,300 words]
ECA0053 Does privatisation necessarily increase efficiency? The basis of this assignment is to answer the question does privatisation necessarily increase efficiency? In answering this question it is essential to investigate the reasons for privatisation as a replacement for nationalisation. This assignment will compare the efficiency case for nationalisation with the efficiency case for privatisation in order to find out which theory is seen to be more efficient. By examining the privatisation of former nationalised industries such as the British railway system and highlighting the positive and negative changes that have taken place due to privatisation an assessment as to whether privatisation has increased efficiency will be formulated. To begin this assignment it is essential to highlight the history of privatisation in the UK [4,000 words]
ECA0054 Examine The Arguments For Governments Providing A Free Healthcare System. What Role Might A Price System Play In Overcoming The Disadvantages Of A Public (NHS) System? The question above challenges the ability of the free market to provide an efficient allocation of resources with regards to social and economic efficiency within the healthcare sector. Economic efficiency is defined as allocative (P=MC), productive (MPPl / Pl = MPPk / Pk) and x-efficiency (operating on the lowest possible AC and MC curves under monopoly); social efficiency results from the aforementioned three measures to create Pareto Optimality. Such a question is posed in response to the weakness of a publicly funded healthcare system despite the advantages that accrue from such a system. The rationale behind free healthcare is twofold; firstly, healthcare is considered by society to be universally desirable and to ration it through the price mechanism is seen as inequitable. This is taken from the moral standpoint of democratic governance and underpinned by welfare economics. Social indicators such as the public quality of life index (PQLI) illustrate the increase in societal well being through the allocation of healthcare on the basis of need and not simply income or wealth [1,500 words]
ECA0055 Identify Four Major Sources of Market Failure. Until now we all have seen how market acts as an invisible hand to maintain balance between suppliers and buyers when competition exists. We say that this type of market drives us to Pareto optimality where no one will be made better off without making the others worse off. This is a concept that will be discussed further in details. In general, where competition prevails, I believe that market works, that is, it takes us to Pareto optimality. However, when the pursuit of private interest does not lead to an efficient distribution of society's resources; situations where individual behaviour does not lead to Pareto efficiency, it is said that the market has "failed". Therefore, in this paper, I am going to identify the four major sources of market failure [2,500 words]
ECA0056 Show what would happen in a market if the government placed a tax on a normal good. Tax revenue is the biggest source of income for any government. Higher the tax revenue for the government, results in more funds available for it to spend and less for firms and individual consumers. Hence, the implications and the consequences of tax are a major issue in microeconomics. Individuals and the businesses are the general source of tax revenues for the government in an economy. There are two types of taxation, which the government can use: Direct and Indirect Taxation. Direct tax is that tax which is levied on income, either of individuals as income-tax or on businesses such as corporation tax. On the other hand, Indirect tax is one in which the government levies the tax on goods and services such as VAT in UK. The implication of government levying the tax on a normal good is a case of an indirect tax. Normal good is a good for which, when income rises the demand for product also rises (positive income elasticity). In order to examine the burden of a tax placed by the government on a normal good, we have to look at several demand/supply situations [1,600 words]
ECA0057 Evaluate the various methods that a firm can use to estimate its cost of equity, discussing advantages and disadvantages of each. Why is it important to estimate the cost of equity as accurately as possible? Whenever a firm makes a profit, it can take two possible actions. On one hand it could pay out the cash as a dividend. On the other hand the firm can invest the extra cash in a project. The project could be building a new factory for example. The aim of this project would be to provide future cash flows that would increase shareholder wealth. The project should only be undertaken if its expected return is greater than that of a financial asset of comparable risk. In this study I will be looking at the different ways of measuring the cost of equity and why it is important to measure it accurately [3,000 words]
ECA0058 Economic Analysis of the firm Price discrimination can be beneficial to both consumers and producers. First-degree discrimination where a firm charges each consumer the maximum they are prepared to pay for the product. This is evident at stalls or street sellers where the customer bargains directly with the seller to bring the price of a product down to one they find acceptable. Second-degree discrimination where the prices charged to consumers varies according the amount they purchase. This is commonly seen in the concept of bulk buying, when greater quantities bought results in lower prices. Third-degree discrimination operates when consumers are grouped into two or more separate markets with different prices in each market. This is the most common type of price discrimination, with student discounts, pensioner fares and child prices being good examples of this category [1,600 words]
ECA0059 Advise on the changes in citizens’ welfare caused by the increase in university fees, considering the resultant partial switch from public to private funding of university education. Citizen Welfare can be measured using several economic forms of analysis. The current controversies over the introduction of top up fees have led people to evaluate the effective increase in consumer prices. Any change in policy can have both good and bad effects on different groups in society. For many problems in society, we wish to observe the effects of a policy change and its repercussions on the welfare of society. In this paper I will attempt to discuss the result of an increase in university fees by examining the Marshallian and the Hicksian measures of consumer surplus. I will consider the differences in analysis and the outcome of applying them to the situation [1,600 words]
ECA0060 Business Economics - Set out the distinctive features of the perfectly competitive model of the market for goods and services? What are the implications for a business strategy aimed at enhancing profitability? In the ordinary sense, the world market refers to a physical place where commodities are bought and sold. However, in economics the term market does not necessarily refer to a particular place, but to the mechanism or arrangement by which buyers and sellers of a commodity are able to contact each other for the purpose of economic exchange. The structure of market is the subject matter of this essay. Market structure refers to the types of market in which producers or firms operate. Various market forms are broadly classified on the basis of competitiveness of the market structure. The competitiveness of the market structure refers to the extent to which individual firms have the power to influence the market price of the commodity [1,800 words]
ECA0061 Explain the theoretic rationale for the NPV approach to investment appraisal and compare the strengths and weaknesses of the NPV approach to two other commonly used approaches. Present value (PV) is the current value of future cash flows discounted at the appropriate discount rate.  Therefore the present value of £400,000 one year from now must be less than £400,000 today.  After all, a pound today is worth more than a pound tomorrow, because the pound today can be invested to start earning immediately. Thus, the present value of a delayed payoff may be found by multiplying the payoff by a discount factor, which is less than one.The rate of return (r) is the reward that investors demand for accepting delayed payments. To calculate present value, future payoffs are discounted by the rates of return offered on alternative investments.  This is called the discount rate or opportunity cost because it is the return forgone by investing in the project rather than in securities [1,600 words]
ECA0062 Present a report, which outlines and evaluates the main contributions Friedrich Von Hayek (1889-1992) made to our understanding of macroeconomics. The Austrian born economist Friedrich Von Hayek presented some of the most influential theories on markets in the 20th century.  As a defender of the free market and of classical liberal principles he believed that we must move away from a state-controlled or “planned” economy and towards a society based upon freedom of association and exchange according to the rule of law.  He is credited as being the most prodigious classical liberal scholar of this century and has been described as the central pioneering figure in changing the course of economic thought in the twentieth century [2,000 words]
ECA0063 MSc International Business International Trade - “The achievements of the rules-based system of world trade over the past fifty years or more have been quite remarkable”. With the end of the Second World War, the United States wanted to give an early boost to trade liberalization and to begin to correct the legacy of protectionist measures, which remained in place from the early 1930s.The combined package of trade rules and tariff concessions became known as the General Agreement on Tariffs and Trade (GATT), first signed in 1947 and entered into force in January 1948. Drawn up by twenty-three countries, the agreement was designed to provide an international forum that encouraged free trade between member states by regulating and reducing tariffs on traded goods and by providing a common mechanism for resolving trade disputes [2,500 words]
ECA0064 Understanding the International Economy - Is There a Global Economy? Discuss The Policy Implications Of Your Answer. The rise of technology has led to our environment being characterized as a global one. “The global economy gave business the ability to market products and services all over the globe. It has also allowed them to develop partnerships and alliances throughout the world, which has become essential for success in today’s business” (Haag, S. (2000) “Management Information Systems”). Prior to globalisation, the United States dominated the global economy. In recent years, however, the U.S. share of the global economy has shrunk to approximately 25 percent and will continue that trend as the economies of many newly industrialized countries continue to pick up steam [2,000 words]
ECA0065 Macroeconomic Analysis - Examine the difference between the Lewis and Todaro models of economic development. Discuss the view that neither model adequately explains the process of development in contemporary less developed countries. “If an economy is a traditional backward economy then how does the economy transform itself into a modern industrial economy?” Looking at this question, eminent economist and Nobel Prize winner Sir Arthur Lewis set about creating the first duel sector model of economic growth. His model compares the traditional sector versus the modern sector or in simpler terms the rural agricultural sector versus the urban manufacturing sector [1,600 words]
ECA0067 Why do governments intervene in agricultural markets? Outline and compare the effects of price support mechanisms and income support mechanisms giving details of the effects on welfare of consumers, producers and taxpayers in both cases. Government intervention is notably present in the agricultural markets and there is much debate about how efficient the different mechanisms used by the government actually are, and whether using a price support mechanism or an income support mechanism is more effective when providing for consumers, producers and taxpayers alike. One of the main reasons that intervention is necessary is due to the considerable price fluctuations that agricultural prices are subject to, resulting in adverse effects for both consumers (high prices) and producers (low income) alike. Fluctuating prices makes rational economic decisions difficult and discourages farmers from making long-term investment plans, which over the years reduces the growth of efficiency within the agricultural industry, resulting in the need for government intervention [1,000 words]
ECA0068 Does privatisation necessarily increase efficiency? The basis of this assignment is to answer the question does privatisation necessarily increase efficiency? In answering this question it is essential to investigate the reasons for privatisation as a replacement for nationalisation. This assignment will compare the efficiency case for nationalisation with the efficiency case for privatisation in order to find out which theory is seen to be more efficient. By examining the privatisation of former nationalised industries such as the British railway system and highlighting the positive and negative changes that have taken place due to privatisation an assessment as to whether privatisation has increased efficiency will be formulated. To begin this assignment it is essential to highlight the history of privatisation in the UK [4,000 words]
ECA0069 Expectations of the future have a significant impact upon consumption and investment decisions made by individuals. Discuss, in the light of macroeconomic consumption and investment functions. When individuals consider the most efficient means of distributing disposable income a wide range of factors must be considered. A high priority must be given to considering the likely effect of future occurrences. Indeed many circumstances can force individuals (e.g. a consumer, business manager, entrepreneur etc) to budget a greater amount than normal to consumption expenditure as opposed to investment expenditure or vice versa. Firstly, we will consider what expectations may result in an individual budgeting a greater amount to consumption whilst allocating a substandard amount to investment. The current income hypothesis states that current income is the main determinant of consumption [1,200 words]
ECA0070 Economic rather than political factors were the main cause of European integration. In order to discuss the statement, which constitutes the title of this essay, there are clarifications, which must be made regarding the statement to be discussed. Firstly European integration has been an ongoing process, which did not suddenly start with the European Economic Community (EEC), nor with the European Coal and Steel Community (ECSC). However for the purposes of this essay, the term European integration will only be discussed in the context of post 1945 developments. Also it must be taken into account that due to the fact that European integration has been attempted in many different forms, at many different times and by many different people, it will be impossible to conclude this essay with a straight agreement or disagreement of the title. However the essay will examine the various different attempts at European integration, attempting to decipher the factors behind the wish for integration [2,200 words]
ECA0071 Is European economic integration delivering the benefits predicted by its supporters? Economic integration was expected to yield substantial benefits for the European economy. The ex-ante studies concluded that a removal of barriers and cost reduction would increase the competitiveness of the European market. However, the immediate jump in performance failed to materialize after the implementation of the Single Market. The Commission perceived the existence of fragmented markets as a serious threat to European competitiveness in the world economy. The excessive market fragmentation within the European Union was held responsible for reducing economies of scale and thus obstructing the structural reforms needed to adjust to global challenges [1,000 words]
ECA0072 Reform of the Common Agricultural Policy. The basic principles on which the Common Agricultural Policy (CAP) was built were set out in the Treaty of Rome which was signed by the six original Member States of the European Community in March 1957. The CAP was created at a time when Europe was in deficit for most food products and its mechanisms were devised to meet this situation. However when it was drawn up, the agricultural situation in the founding states differed very widely from one country to another. The natural and economic circumstances and the relative importance of agriculture varied considerably from the North of Europe to the South. In addition, some countries had developed free trade systems, and others were fiercely protectionist. This diversity, which was destined to increase with the enlargement of the Community, did not deter the authors of the Treaty of Rome from creating a CAP [1,200 words]
ECA0073 Understanding the Economy. Apply the Keynesian Cross model to analyze how falling house prices and tighter consumer credit conditions in the UK may cause the UK macro-economy to go into recession. We should analysis how falling house prices and tighter consumer credit conditions in the UK may cause the UK macro-economy to go into recession. About the Keynesian cross model, that is an essential tool for understanding macro-economic trends, the causes of macro-economic instability and assessing appropriate business strategy.  It is also useful for evaluating Government policy responses, a theme taken up again in later Units. And one of the most important theoretical insights of Keynes was that the volume of National Expenditure determines the level of National Income and Product.  Changes in aggregate income and output are, therefore, due to changes in National Expenditure.  Consequently the Keynesian Cross model focuses on National Expenditure, and the components which make up National Expenditure, to show the equilibrium levels of National Income and National Product [2,800 words]
ECA0074 Great Depression and Economic Crisis in the 20th Century. Economic crisis rarely occur but if they occur, they usually have a big impact on a country’s economy. The great depression is an economic crisis that hit almost the entire universe having originated from the United States of America in the beginning of the 1929. The great depression lasted for ten years having ended in 1939 . Never has there been a very long and severe depression witnessed in the history of the world. The depression resulted to sudden turn down in the rate of the output being produced, which resulted to unemployment . Having being ranked second as the biggest crisis to be witnessed on earth with civil war sailing on the top, it is clear to see that the great depression is a topic that will forever remain engraved in our books. The effect of the great depression varied across the planet as in some countries the depression was severe while in some it hit them mildly. One of the countries that suffered greatly from the great depression is the United States of America. In addition to that, Europe also suffered severely from the great depression unlike Latin America and Japan, which was not, affected that much [5,000 words]
ECA0075 Evaluate the usefulness of the Stackelberg model in explaining the behaviour of firms in oligopolistic markets. An oligopoly refers to the economic situation where there are several firms in the industry producing a product whose price is dependent on the quantity. Examples include larger firms in computer, chemical, and automobile etc. Cournot was the first economist to explore and explain the oligopolistic competition between the two firms in an oligopoly. He put forward the idea of duopoly problem and the non- cooperative behavior of the firms. Later in 1934, Heinrich F. von Stackelberg came up with another model that explains the strategic game through which the firms in an oligopoly decide the level of output in a sequential manner. This essay aims to evaluate the usefulness of Stackelberg Model in explaining the behavior of firms in oligopolistic markets. Moreover, through economic diagrams and relevant theories, it will be discussed that how realistic the model is in today’s world [2,000 words]
ECA0076 Macroeconomic Shocks: Excess Demand Cases. Six shocks will initiate the macroeconomic coordination process (MCP) of an organization. These shocks are external (they do not respond to a prior change in the level of interest rates or in the level of GDP) and involve an initial rise or fall in GDP, APE, or ASF. The shocks may occur either in singular, combination or in sequence. In this chapter, three shocks will be considered namely; an increase in APE, an increase in ASF, and a decrease in GDP. A common feature of the three shocks is that after initial the funding adjustment, the level of funded demand is likely to exceed the currently available domestic supply of goods and services (GDP < APE = ASF). In this chapter, it is assumed that the economy has a macroeconomic equilibrium i.e. GDP = APE = ASF. In this type of economy, several things are constant. These include levels of employment, output, interest rates, and prices. In addition, an assumption that no other shocks will be prevailing prior to this shock will be made [2,800 words]
ECA0077 Business Economics. This report investigation has been laid down concerning the nature and characteristic of UK economy and economic system. This will be analyzed in order to identify the affects it is going to lay down on the UK business activities. Further, research is also going to research and apply relevant theories in order to understand the economic function.  The report is also going to study about the impact laid down by market power on their economy and role of government in the macroeconomic environment. Study is also going to apply economic theories to the globalization of trade. The company that has been chosen for carrying out this research is British Petroleum and it is one of the leading companies in integrated oil and gas of the world. [4,500 words]
ECA0078 Economy of China. Peoples Republic of China (PRC) generally known as China is the most peopled country in the world. The republic was founded in the year 1949 after the communist party defeated nationalists Kuomintang. The country is a unitary sovereign state in East Asia with a population of 1.4 billion people. Mandarin Chinese the commonly spoken language in this country. The nation has four major religions namely; Taoism, Christianity, Buddhism, and Islam. The life expectancy in China is high compared to other developing countries. Typically, the life expectancy for men is 75 years and 78 years for women. China Economic Indicators & Modernization Theory of Economic Growth and Development [2,500 words]
ECA0079 Broadband Internet and Economic Growth: Industry Level-Evidence from the OECD. Broadband internet is a term used to refer to the high speeds with which data transfers take place over the internet. Internet here means the global interconnection of computers. Today more than ever in the history of internet use the need for high transfer speeds is growing. Areas where these high speeds are essential include VoIP telephony, video streaming, transfer of large file sizes, tele-working and video conferencing. In addition most businesses have already moved much of their services online. In this light, the use of high speed internet is crucial for them to maintain a competitive advantage globally. Among many OECD countries the use of broadband has continued to increase over the years, showing a great need for the services. This paper seeks to show how broadband internet has grown in these countries, as well as the evidence of the impact it has made on their economic growth [5,500 words]
ECA0080 Economic Growth and Living Standards. Economic prosperity has long been attributed to economic growth since there are myriad benefits of a sound economy. The last fifty years have seen a dramatic change in the manner economic growth has been witnessed from some of the ‘Third World’ countries. With a view to understand the relation between economic growth and living standards the paper will focus on the economic growth of the two selected countries of USA and China. The paper will analyse the pertinent growth indicators for both these countries and will analyse and compare other facets of standards of living between these two countries. The paper will also discuss the scope of economic growth and its relation to the holistic development and growth for these two selected countries [2,000 words]
ECA0081 China Economic Statistics: How Accurate are China’s Official Economic Data? The economy has always been of great relevance and significance for empires and states. In fact, the expansion of empires and colonial periods can be better understood from the perspective of economics. Historians and academics are of the view that the expansion of empires and colonization, of states by colonial powers, was motivated (primarily) by economic factors. Also, we learned that economic changes yield new political-social realities, which give direction to civilizations evolution . In these contemporary times too, both economics and economy have great importance. Governments are extremely sensitive regarding economic growth, general inflation, and employment level, within a country, which is why they devise strategies, policies to realize their economic objectives that also overlap their political-social objectives. In fact, contemporary states synchronize their political-social objectives with their economic objectives. In some cases, prudent governments use the economy as a tool to bring about changes in social and political realms [3,500 words]
ECA0082 Social Capital and Reduction of Poverty. Economic development is important for every country as it not only generates prosperity but also increases the size of economy and subsequently elevating the living standard of its citizens.  Social capital is one of the tools which aid economies in their development and eradication of poverty. The study conducted is focused on analyzing the relationship of the constituents of social capital and poverty rate through the use of the fixed-effect model. The analysis has shown some surprising results. For instance, the educational spending and health spending has been found to raise poverty rates. Such relationships can be explained through the phenomenon of brain drain or lack of equal opportunities. Further study in the highlighted areas is needed to investigate these contrasting relationships. Various aspects of social capital become more potent, social capital’s dividends. The more potent a social capital is (more externalities, it creates and easier it is to exploit it), more effective it is to eradicate poverty, which is the prime concern for nations [3,000 words]

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