)R BUSINESS> 11 CLASS (45) INDIV TEST ON 9 OCT @WK 12 CLASS) ITH YOUR CAMERA TURNED ON. 2022-SZ-OL-MGE1201 Economics for Business Question 1 Not yet answered Marked out of 5.00 V Flag question 1.1 The Australian wine market resembles a monopolistic competition market. Give at least 2 (two) reasons for each part below, why the Australian wine market is not a) a perfect competition market. b) a monopoly market. (5 marks) Question 2 Not yet answered Marked out of 7.00 \\7 Flag question 2.1 a) Use cheap Australian wine that costs below $10 a bottle and premium wine that costs more than $100 a bottle to explain what an inferior good is compared to normal good. (3 marks) b) State another pair of related products as examples of inferior and normal good . (1 mark) c) Assuming an increase in income, use the Demand Supply model for cheap Australian wine shown below to describe the movement of the demand/supply curves if any, - indicate what the new equilibrium price and quantity may be. (3 marks) Price per bottle 8 #0101 0 50 100 150 200 Quantity of boules per period (3 marks + 1 mark + 3 marks = 7 marks) 2022-SZ-OL-MGE1201 Economics for Business Question 3 3.1 \"M Vat Price answered per unit Marked out of 5.00 V Flag question 0 Q,=100 Qty/period Assuming better than usual weather and soil conditions perfect for grapes cultivation and wine growers in Australia, use the above demand supply model to predict what will happen to the demand and/or supply curve, whether a temporary surplus or shortage of wine will result and what will be the new equilibrium price and quantity of wine. (5 marks) Tub BUSINESS> 11 CLASS (4B) INDIV TEST ON 9 OCT @WK 12 CLASS> TH YOUR CAMERA TURNED ON. 2022-$2-OL-MGE1201 Economics for Business Question 4 4.1 Not yet Below is an extract from the case study: answered In the Australian market, VWC sells its wine through arrangements with bottle shops in Australia's cities and rural Marked out of towns. Selected brands are sold exclusively through its winery and from its wine tasting and wine tour events. 5.00 ..... VWC wines have been exported to the traditional markets of Europe and USA and more recently to China and some Flag question of the developing countries in Asia with in-roads made in South Korea. Describe how a stronger Australian Dollar (A$) will affect VWC in the following areas: . Its competitive position in Australia compared to wine imported from France. . Its competitive position overseas compared to wine from other wine growing countries. (5 marks)Tub BUSINESS> 11 CLASS (4B) INDIV TEST ON 9 OCT @WK 12 CLASS> TH YOUR CAMERA TURNED ON. 2022-$2-OL-MGE1201 Economics for Business Question 5 5.1 Not yet Similar to wine exports, the export of beef is an important source of income for Australia and contributes significantly answered to her GDP. In 2020, Brazil was the largest beef exporter in the world followed by Australia, the United States, India Marked out of and Argentina. 5.00 Flag question To keep its exports competitive, explain how Australia should manage its inflation. Your discussion should incorporate the following for which marks will be awarded. Which authority manages Australia's inflation? The target inflation range that the authority will try to keep Australia's inflation rate. The effect on Australia's exports and her economy if inflation is not managed well. Your explanation should use the model 'GDP = C + I + G + X - M'. The role of money supply and interest rate that are key in managing inflation. (5 marks)Question 6 Not yet answered Marked out of 5.00 W Flag question 6.1 Governments play an important role in maintaining policies that support businesses. Entering into trade agreements with other governments, negotiating better terms of trade, framing favourable trade policies etc can all come under what economists call Supply side fiscal policy. Use the AD-AS model below to explain how successful government policies such as the above-mentioned affect Australian businesses and the country's GDP/economy. CPI 150 140 130 120 110 100 0 700 800 900 1000 GDP($000) Your answer should consider the following Comment on the influence this may have on the direction that AD and/or AS curves will shift and why. Indicate what the new GDP, CPI may be, based on data in the given model. Contrast the effect on inflation compared to Demand-side fiscal policy. (5 marks) Question 7 Not yet answered Marked out of 8.00 \\'0 Flag question 7.1 a) During COVID-19 the Australian government increased Job-Seeker payments to those who lost jobs, implemented JobKeeper to keep workers on companies' payroll, issued vouchers to encourage spending at eateries and entertainment places. Discuss the kind of Demand-side fiscal policy that the Australian government implemented. Your discussion should incorporate the following for which marks will be awarded. 1. Who is the manager of Australia's Fiscal policy. 2. An gplanation of why you think the manager operated a Budget deficit or surplus. 3. If it will be an Expansionary or Contractionary policy. 4. Which and how item/s in the model 'GDP = C + I + G + X M' will be affected. 5. How the Spending multiplier will operate in this situation. (5 marks) b) Refer to the AD-AS model shown. You do not need to draw on the diagram or to submit it, but you should 1. describe the shifts of the AD or AS curves and 2. use the data to indicate what is the new CPI and GDP if the kind of Demand-side fiscal policy in your answer to part (a) is implemented. CPI 160 150 140 130 120 110 o 1000 1100 1200 1300 GDP (5000)