HI5003 Economics for Business Holmes Final Assessment 2023
| Unit Details | Name | Economics for Business |
| Code | HI5003 | |
| Trimester, Year | Trimester 1, 2023 |
| Assessment Details | Name | Final Assessment |
| Due Date | 16 June, 2023 | |
| Due Time | 3.00 pm | |
| Weight | 50% |
| Student Number | |
| First Name | |
| Family Name |
INSTRUCTIONS for HI5003 Economics for Business
| Duration | 24 hours LATE SUBMISSIONS ARE NOT ACCEPTED |
| Answers | All responses must be entered using the answer boxes provided in this paper. DO NOT CUT AND PASTE INTO A NEW DOCUMENT |
| File Format | MS Word only. No other format is accepted |
| Submission Information | Instructions are listed at the end of this paper and must be followed. |
| Academic Integrity Information | Holmes Institute is committed to ensuring and upholding academic integrity. All assessments must comply with academic integrity guidelines. Important academic integrity breaches include plagiarism, collusion, copying, impersonation, contract cheating, data fabrication and falsification. Violating academic integrity is serious and punishable by penalties that range from deduction of marks, failure of the assessment task or unit involved, suspension of course enrolment, or cancellation of course enrolment. |
| Penalties | Reference sources must be cited in the text of the report, and listed appropriately at the end in a reference list using Holmes Institute Adapted Harvard Referencing. Penalties are associated with incorrect citation and referencing. |
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.
| R | S | T | U | V | W | X | Y | |
| Electric cars | 0 | 35 | 50 | 60 | 75 | 90 | 105 | 110 |
| 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):
1 mark
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
ANSWER b:
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.
| Item | Cost (AUD) |
| Milk section cashflow | |
| 1 Milk truck | 90,000 |
| Milk stainless cans | 20,000 |
| Milk cooler | 50,000 |
| 2 litre milk packs (Cost depends on milk bought. Assume average per month) | 5,000 |
| Office desk | 300 |
| 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 |
| Commercial refrigerator | 4,000 |
| 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 |
| Bread van | 25,000 |
| 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:
ANSWER a:
ANSWER b:
ANSWER c:
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) |
| Cost (AUD) | 80,000 | 10,000 | 91,000 | (5000) | (6000) |
ANSWER i:
ANSWER ii:
ANSWER iii:
ANSWER iv:
Question 4 (7 Marks)
ANSWER a:
Use the information provided to answer the following questions:
ANSWER i:
ANSWER ii:
Question 5 (7 marks)
ANSWER a:
ANSWER b:
Question 6 (7 Marks)
ANSWER a:
ANSWER b:
END OF FINAL ASSESSMENT
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| Full Name | |
| Submission Date |
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