Subject Code : 49003
Assignment Task:
49003 - Country X Case Study Economics Evaluation Assessment Answer

THE SETTING

Country X is blessed with large reserves of natural resources, a spectacular physical landscape and a moderate climate. It is inhabited by a well-educated and industrious workforce and has a parliamentary form of democracy.

The people in the country enjoy an impressive standard of living. Some concerns have however emerged in recent times about the current state of the economy (Annexure 1 provides select information about broad economic settings for the country). The main factors that seem to have contributed to these concerns include excessive reliance on primary commodities; perceptible shifts in international trade patterns - from primary commodities to high value-added products and services, low business and consumer confidence, low personal savings, inadequate productive investments, large national debt, disproportionately high imports, and a global economic downturn. The future economic prospects for the country do not look promising unless some concerted measures are taken to rectify the situation.

While several such measures (let us call them ‘proposals’) are presently being considered by the government, a general consensus appears to be building around two proposals - Proposal A and Proposal B. Both proposals relate to investing in the infrastructure sector. Each of these proposals is likely to cost $40bn (2013 prices). Further, the government has decided that these projects will be implemented in joint (i.e., public-private) partnership. The underlying argument in support of these investment proposals is that they will stimulate economic activity and affect the economic outcome in a multiplicative manner.

These proposals have generated considerable community-wide interest. Rightly so. The investments are large and their economic and societal implications are likely to be significant too. A careful evaluation of these proposals is therefore necessary. In view of the renown of UTS MEM graduates, you have been invited to evaluate these proposals.

 

Questions:

1.    Provide a summary of the economic performance of the country 
2.    Which proposal will you recommend? 
3.    Is the proposal, in this assignment, to invest in infrastructure based on Keynesian or Neo-classical reasoning? 
4.    What value of ‘Marginal Propensity to Save’ is implicit in your calculations for proposal B? 
5.    Will you recommendation change if, say, due to unforeseen Global Financial Crises, the economy experiences very high inflation and - as a result – the GDP Deflator for 2023 becomes 300? 
6.    Will your recommendation change if, for Proposal A, people increased their annual consumption by exactly the same amount as increase in their annual incomes (as shown in Table 1 of the assignment)? 
7.    For what value of investment (currently investment is $40bn, expressed in 2013 prices) will you become indifferent between recommending Proposal A or Proposal B? 

 

This 49003: Economics Assignment has been solved by our Economics Experts at UniLearnO. Our Assignment Writing Experts are efficient to provide a fresh solution to this question. We are serving more than 10000+ Students in Australia, UK & US by helping them to score HD in their academics. Our experts are well trained to follow all marking rubrics & referencing style.

Be it a used or new solution, the quality of the work submitted by our assignment experts remains unhampered. You may continue to expect the same or even better quality with the used and new assignment solution files respectively. There’s one thing to be noticed that you could choose one between the two and acquire an HD either way. You could choose a new assignment solution file to get yourself an exclusive, plagiarism (with free Turnitin file), expert quality assignment or order an old solution file that was considered worthy of the highest distinction.

Eureka! You've stumped our genius minds (for now)! This exciting new question has our experts buzzing with curiosity. We can't wait to craft a fresh solution just for you!

  • Uploaded By : Mitchell Lee
  • Posted on : December 10th, 2018

Whatsapp Tap to ChatGet instant assistance