Q1.Technology and Costs (Part I - L2, Unit 2)

A series of floods and swarms of desert locusts are destroying crops and affecting livelihoods in East African nations (viz. Kenya, Ethiopia and Somalia), according to these articles:

1.https://www.theguardian.com/global-development/2020/jan/24/food-prices-shot-up-floods-spark-a-scramble-for-survival-in-east-africa

2.https://www.cnbc.com/2020/02/20/plague-of-locusts-threatens-east-african-economies-as-un-sounds-alarm.html

3.https://www.npr.org/2020/02/21/807483297/why-are-swarms-of-locusts-wreaking-havoc-in-east-africa

Based on this discussion and economic theory, suppose that a second wave of locusts occurred and decimated crops and pasture in East Africa, leading to a major spike in staple food prices within the region. Draw appropriate diagrams using Malthus' model to illustrate and explain in some detail the possible effects of such a severe locust plague within the horn of Africa. Comment on the explanatory power of Malthus' model in this context for the Federal Democratic Republic of Ethiopia.

Q2.Technology and Costs (Part II - L2, Unit 2)

In the UK, the rise of the discount supermarket Aldi has attracted more customers, sales and market share in recent years, and is seen as a major disrupting force in the supermarket sector, according to this article:

https://www.theguardian.com/business/2019/mar/05/long-read-aldi-discount-supermarket-changed-britain-shopping

Based on this discussion and economic theory, draw an appropriate diagram using relevant isocost lines to illustrate and explain in some detail how Aldi's business model is receiving Schumpeterian (innovation) rents over its key competitors. Use hypothetical data (rough guesses) relying on intuition. Refer to key sentences and ideas from the article where relevant to support your analysis.

Q3.FeasibilitySet andIndifference Curves (L3, Unit 3)

Consider the advances you have made in studying more productively over the past two years or so (e.g. from high school to 2nd-year university). Describe the specific methods you have used to improve your studying processes. Draw a diagram to illustrate how a technological improvement in your personal production function would affect your feasible set of grades and study hours. Then, examine what might happen to your choice of study hours, and the choices that you might make.

Q4.Income and SubstitutionEffects (L4, Unit 3)

Since 2018, wages in low-wage industries in the US such as food service and retail have experienced (on average) strong per annum pay increases. This is partly due to recent minimum wage increases, according to this article:

https://www.washingtonpost.com/business/2020/01/02/minimum-wage-increases-fueling-faster-wage-growth-those-bottom/

Based on this article and economic theory, analyse the effects of these wage changes.Consider that the minimum hourly wage in the US increased from $7.25 in 2017 to $12.50 in 2020. Discuss in detail the income and substitution effects of this wage increase from 2017 to 2020 for low-wage workers and support your answer with a diagram and sound reasoning.