Term Paper
BUECO5903 BUSINESS ECONOMICS ASSIGNMENTS A and B Semester 1, 2013
Due dates for each section are provided in the Course Description.
Part B – Macroeconomics – Worth 10% of total assessment:
Answer any five (5) of the following questions. Each question is worth 10 marks.
Question 10:
a) Which of the following are final goods and services and which are intermediate goods and services? Please explain why in your answer. (4 marks – 1 mark each)
i) A windscreen purchased by a motor vehicle spare parts supplier;
Intermediate – because its initial production value has been accounted for within the National accounts (i.e. GDP) and it is being resold at a depreciated value as a second hand goods.
ii) A new bulldozer to be used by a construction company;
Final goods – however , when a construction company buys and users a new bulldozer , it Subsequently become an intermediate good when it is used in the production of others
iii) A household cleaning service purchased by a family from a domestic cleaning service company;
Final goods – as the resale value of the business comprises value added (i.e. good will etc )which Has not previously been included within the national accounts
iv) Coking coal
Intermediation goods unless being sold by exporting as it is used as an ingredient into the Production of other good such as iron and steel , steam etc.
b) An economy produces final goods and services with a market value of $800 billion in a given year, but only $750 billion worth of goods and services is sold to domestic or foreign buyers. Is this nation’s GDP $800 billion or $750 billion? Explain your answer. (2 marks)
The nation's GDP for the year is $800 billions .GDP includes the market value of final good and service
Produced, regardless of weather these products are sold . The unsold products are
Due dates for each section are provided in the Course Description.
Part B – Macroeconomics – Worth 10% of total assessment:
Answer any five (5) of the following questions. Each question is worth 10 marks.
Question 10:
a) Which of the following are final goods and services and which are intermediate goods and services? Please explain why in your answer. (4 marks – 1 mark each)
i) A windscreen purchased by a motor vehicle spare parts supplier;
Intermediate – because its initial production value has been accounted for within the National accounts (i.e. GDP) and it is being resold at a depreciated value as a second hand goods.
ii) A new bulldozer to be used by a construction company;
Final goods – however , when a construction company buys and users a new bulldozer , it Subsequently become an intermediate good when it is used in the production of others
iii) A household cleaning service purchased by a family from a domestic cleaning service company;
Final goods – as the resale value of the business comprises value added (i.e. good will etc )which Has not previously been included within the national accounts
iv) Coking coal
Intermediation goods unless being sold by exporting as it is used as an ingredient into the Production of other good such as iron and steel , steam etc.
b) An economy produces final goods and services with a market value of $800 billion in a given year, but only $750 billion worth of goods and services is sold to domestic or foreign buyers. Is this nation’s GDP $800 billion or $750 billion? Explain your answer. (2 marks)
The nation's GDP for the year is $800 billions .GDP includes the market value of final good and service
Produced, regardless of weather these products are sold . The unsold products are