University : Deakin University UniLearnO is not sponsored or endorsed by this college or university.
Subject Code : MAE101
Country : Australia
MAE101 - Economic Principles - Microeconomic Concepts - Case Study Assessment Answer
Task:

Unit Learning Outcome )
 Describe, analyse and apply key microeconomic concepts

Discipline-specific knowledge and capabilities

 Explain, present and interpret economic tools in a digital format

 Obtain and present information and data related to a real world issue, and critique approaches to the issue.

Task 1: A bounty on the toad - MAE101 
The cane toad (Bufo marinus) is an introduced pest that has been particularly destructive to some native Australian wildlife. Some Australian politicians have called for a bounty as a solution to the cane toad epidemic. The idea is that people would be paid a fixed dollar amount for each cane toad that they kill and turn in to authorities. Using economic principles, answer the following two questions. (No data is needed to complete this task.)
(a) What is the likely impact of the bounty on the number of cane toads killed?
(b) Will a bounty necessarily result in a reduction of the population of cane toads? Explain your answer.

Task 2: Breaking bad - economic incentives and the international drug trade - MAE101 
The production and distribution of drugs is illegal in most countries. Authorities prosecute drug producers and consumers, with varying success. In this task we explore how developments in legal markets may spill over to affect illegal markets. We will analyse the Mexican drug trade. This case study comes from the article by: Oeindrila Dube, Omar García-Ponce and Kevin Thom. 2016. From Maize to Haze:

(a) In 1994, Canada, the USA, and Mexico established the North American Free Trade Agreement (NAFTA). NAFTA reduced Mexico’s import tariffs on corn, resulting in a 20% drop in the price of corn in Mexico. With the aid of a diagram, illustrate the market for corn in Mexico before and after the introduction of NAFTA. Explain the impact this is likely to have had on domestic Mexican production and consumption of corn, and economic welfare. (No data is needed to complete this task.)

(b) Some Mexican corn farmers in economically depressed areas are able to use their land to grow marijuana and poppy plants (used to produce opium). Use demand and supply analysis to illustrate the market for illegal crops before and after NAFTA. Explain why developments in the corn market may or may not affect the production of crops used to produce drugs. (For this task, assume that the likelihood of being caught/penalized does not change with the introduction of NAFTA.)

(c) Use the Mexican Crop Data in the Assessment Resources folder (on the MAE101 Cloud site) to illustrate the association between the price of corn and the total value of marijuana seized by the Mexican army. (The data come from the above-cited Dube et al., 2016, study.) (Hint: you can use Excel or any other software to produce a scatter diagram.) Is there any noticeable pattern in the data? What economic principles can you use to explain this pattern in the data?

(d) One feature of the Mexican drug market is the presence of drug cartels. With the aid of a diagram, illustrate and discuss the production and price decisions of a drug cartel.

(e) Another feature of the Mexican drug market is the escalation of cartel related violence.2 Rival groups clash to secure land for growing illegal crops. Violence is also used by cartels to enforce cooperation between cartel members. How might the price of corn affect drug cartel violence?

(f) Reflecting upon this case study and your answers to the questions above:
i. Which outcomes were intended?
ii. Were there any unintended consequences?

iii. Discuss two policies that you would recommend in response to this situation.

This MAE101: Economics Case Study Assessment 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.

  • Uploaded By : jaxon
  • Posted on : August 29th, 2018
  • Downloads : 408

Whatsapp Tap to ChatGet instant assistance