HI5003 Economics for Business Holmes Final Assessment 2023
|Unit Details||Name||Economics for Business|
|Trimester, Year||Trimester 1, 2023|
|Assessment Details||Name||Final Assessment|
|Due Date||16 June, 2023|
|Due Time||3.00 pm|
INSTRUCTIONS for HI5003 Economics for Business
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BEFORE ANSWERING THE QUESTIONS IN THIS PAPER, PLEASE READ THE CASE STUDY PROVIDED
Assume before the June 2022 floods, Pakistan could produce only two commodities: electric cars and wheat. Also assume that Pakistan can produce at any of the positions represented by the production possibility schedule below.
|Wheat (in tons)||550||475||400||350||275||250||200||0|
Support your answer. HI5003 Economics for Business
ANSWER a (i): answer boxes will enlarge as you enter your responses
ANSWER a (ii):
ANSWER a (iii):
ANSWER a (iv):
ANSWER a (v):
- assume you are a manager of a firm. Examine the effects of the floods in Pakistan on the supply of your product or service. 4 marks
Question 2 (11 Marks)
Due to lack of food after the flood devastation in Pakistan, Khan, a Secondary School teacher decided to start a milk and bread business in July 2022. Assume Khan’s business expenditure and income is converted from Pakistani Rupee to Australian Dollar (AUD). Khan started his business by utilising his bank savings worth AUD 120,000 from which he was earning 5% interest per month. Also, Khan uses his own premises from which his rental earnings are AUD 5,000 per month. Further, in order to manage his business Khan decided to quit his job from which he was earning AUD 5000 per month. Finally, the table below represents Khan’s July business summary.
|Milk section cashflow|
|1 Milk truck||90,000|
|Milk stainless cans||20,000|
|2 litre milk packs (Cost depends on milk bought. Assume average per month)||5,000|
|2 computers (Assume each computer costs 2500)||2,500|
|2 cashiers (wages depend on hours worked. Assume this is the average monthly wage per worker)||4,000|
|Bread Section cash flow|
|2 Bread Mixers (Cost per bread mixer of 14,000 per machine)||14,000|
|2 Support Workers (wages depend on hours worked. Assume 3000 is the average monthly wage per worker)||3000|
|Cost of monthly bread dough sweeter ingredients (Depend on demand – Assume this is the average expenditure per month)||5,000|
|Dough proofer machine||15,000|
|Bread heavy duty oven||6,000|
|2 Sheet pan racks (Cost per sheet pan rack is 1000)||1000|
|Bakeware tools (Assorted bakeware tools include: bread pans, muffin tins, cake pans, knives and spatulas)||5,000|
REQUIRED:HI5003 Economics for Business
Use the table to answer the following:
Question 3 7 Marks
Assume you start a business in Pakistan after graduating from Holmes Institute. At the end of your first business year you receive your business summary as below from your economic advisor. Assume you convert the Pakistani Rupees into Australian dollars. Answer the questions that follow.
|Item||Fixed cost||Variable cost||Economic cost||Accounting profit/ (loss)||Economic profit (loss)|
Question 4 (7 Marks)
Use the information provided to answer the following questions:
Question 5 (7 marks)
Question 6 (7 Marks)
END OF FINAL ASSESSMENT
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