ECO2103 PRINCIPLES OF MICROECONOMICS
INDIVIDUAL ASSIGNMENT (30%)

The assessment for this course comprise ONE essay of up to 1800 - 2000 words in length. This word limit includes footnotes (if any) but exclude references, tables or diagrams.
Essay: Choose one from the following 6.
1) Currently, most of the world adopted mixed economy as a mean of resource allocation. Before that, different economy system was proposed in the 16th- 19th century such as pure capitalism and communism. Explain why the latter two economy system fail to become dominant in today economy?

2) Theoretically, price is determine by the force of market demand and supply. However, does it really applicable in today economy, given that information is imperfect in the market?


3) In Adam Smith famous “paradox of value”: “Water has less value in exchange while it is important for survival. On the other hand, diamond has less value in use but greater value in exchange”. Explain your reasoning for the above statement.


4) In theory, when demand is inelastic, increasing price will increase firm’s profit. However, when demand is elastic, decreasing price will increase firm’s profit. Does this case necessary to be true in practice?


5) Does perfectly competitive markets exist in real world? Explain.


6) From economic point of view, what are the main causes of market failure?







Requirement
1) You are required to submit your work to Turrnitin to prevent plagiarism. Your similarity should not exceed 25%. Penalty will be impose for works that exceed 25% similarity. Candidate with serious plagiarism could be charge for academic dishonesty.
2) Referencing style: Harvard Referencing.
3) You must submit a hardcopy of your write-up together with turnitin report and assessment rubric.
4) Submission after due date (Within 1 week after the due date), maximum marks will be 50% from the total.
5) No mark will be credited after the 1 week maximum limit or after any extended date where an extension has been granted.
Final date for submission
The final deadline for essay submission is:
WEEK 11