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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] |
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