Answer all questions this is my assignment.

QUESTION ONE (a) Outline four assumptions underlying consumer equilibrium. (4 marks) (b) With the aid of a diagram, explain the production possibility frontier. (5 marks) (c) Summarise five ways through which the government could influence the allocation of resources in a free market economy. (5 marks) (d) Explain how the concept of elasticity of demand guides economic decision making in the following areas: (i) Government tax policy on household consumption. (2 marks) (ii) Devaluation policy. (2 marks) (iii) Price discrimination a monopolist. (2 marks)(a) Outline FIVE differences between purchasing goods and purchasing services. (10 marks) (b) Explain any THREE of the '5 rights of procurement' including how each might be achieved. (15 marks)QUESTION ONE (a) With the aid of a diagram, describe the concept of unstable market equilibrium. (5 marks) (b) "All giffen goods are inferior goods but not all inferior goods are giffen goods". Using a relevant diagram, explain the above statement. (5 marks) (c) Argue five cases for and five cases against specialisation as a method of production. (10 marks)Use the passage below to complete the exercise that follows. SwissTech Snowboards is a sole proprietorship that manufactures snowboards and snowboarding equipment. In the past, the company has done quite well, and the owner is satisfied with the rate of growth. However, the economy is now going through a period of recession, sales are slower than in previous years, and it is getting more and more difficult to secure much needed credit from the banks. It is the end of the financial year and the controller of the company is concerned that the company will not be able to obtain the credit necessary to continue operations. As he prepares the end-of-year financial statements, the controller decides to record as sales a load of snowboards and bindings that has not yet been shipped to the client. The controller feels that this will improve the company balance sheet and make it easier to obtain credit. However, the better-than- expected numbers surprise the owner who then asks for a bigger loan than previously planned. With the additional money, he plans to pursue new product development and fund a marketing campaign to promote his products to new target markets. Upon receiving SwissTech's loan application, the loan officer asks for audited financial statements. The owner asks an auditing firm to prepare the documents, and it comes up with a much more pessimistic picture of the company's financial position than the one initially presented by the company's controller. Using your knowledge of business, write an essay in which you: . critique the decisions made by the controller and owner of SwissTech in the case study presented above and explain why their actions were problematic; and . identify two alternative steps that the owner and controller could have taken to help the company obtain needed financing and explain why each step would be effective.\fUse the passage below to complete the exercise that follows. Wilson's Nursery and Garden Center is a second-generation family business that supplies high-quality greenhouse and nursery plants. Most of the plants are grown on site and are sold to several landscaping firms in the community and to the general public. For an additional charge. Wilson's will deliver and plant trees and shrubs for customers. Wilson's has always prided itself on customer service and has invested considerable resources in training and paying a highly motivated sales force to provide friendly and knowledgeable advice to customers on selecting and caring for their plants. Recently. Wilson's managers have learned that a large discount store is planned for the area. The store will include a garden center that will sell gardening tools and supplies and plants shipped in from low-cost growers outside the area. Wilson's managers are concerned that they will see sales and profits decline after the new discount store opens. As a first step in deciding how to act, they decide to identify the current strengths and weaknesses of their own business. Using your knowledge of business, write an essay in which you: . identify two types of information that will help Wilson's managers identify the current strengths and weaknesses of their own business; and . explain how each type of information would help Wilson's managers make decisions about specific actions they should take to help maintain sales and profitability.For a closed economy, the goods market is in equilibrium when the aggregate quantity of goods supplied equals the aggregate quantityr of goods demanded. Algebraically, this condition is: Y: Cd + Id + 6. Alternatively, this equilibrium condition can be written: 3d = rd. This states that the goods market is in equilibrium when desired national saving equals desired investment. The savinginvestment diagram can be used in turn to demonstrate how the real interest rate adjusts to achieve equilibrium in the goods market for any.I given levei of output. {a} How is the goods market equilibrium condition for a closed economy different 'om the income expenditure identity, Y: C + l+ G? {in} Use the twoperiod framework of a representative. fowvard looking consumer with consumption smoothing preferences to explain how a temporary increase in current income will affect the equilibrium real interest rate and aggregate investment. (c) A representative firm's desired investment expenditure is determined by the taxadjusted user cost of capital and the expected future marginal product of capital. Use the framework for the representative firm and the savinginvestment diagram to demonstrate and explain the effect of a decrease in the business income tax rate upon the real interest rate and the aggregate level of investment and national saving (assuming that consumers are not forward looking}