Assignment Cover Sheet

Qualification Module Number and Title

Higher Diploma in Business Management BHNC4201: Business Economics

Student Name & No. Assessor

Hand out date Submission Date

Assessment type Duration/Length of Weighting of Assessment

Assessment Type
Report 1 month / 3000 words 60%

Learner declaration

I, ………………………………………….<name of the student and registration number>,

certify that the work submitted for this assignment is my own and research sources are fully
acknowledged.

Marks Awarded
First assessor

IV marks

Agreed grade

Signature of the assessor Date

1
 FEEDBACK FORM
INTERNATIONAL COLLEGE OF BUSINESS & TECHNOLOGY

Module: BHNC4201: Business Economics

Student:
Assessor:
Assignment: Business Economic Individual Report

Strong features of your work:

Areas for improvement:

Marks Awarded:

2
 Business Economic Individual Report
Learning outcomes covered
1. National income, employment, Fiscal and Monetary policy with economic growth
2. Microeconomics of the product market with cost of production
3. International economics and world business with international trade

TASK: Please answer all the questions in a report format.

1. The countries USA and China produce computers and rice using only labor as an input.
Available Labor for USA and China is 3000 and 1000 respectively. Unit of labor per
computer in USA is 6 units and in China are 5 units. USA needs 2 units of labor to produce
rice and China needs 1 unit of labor.

a) Draw the PPC by using relevant information.(3*2=6 marks)

b) Which country has the comparative advantage in producing wine? (1*4=4 marks)

2. Fill the table below and draw MC, ATC, AVC and AFC curves. (4*5=20 marks)

Output Fixed Total cost ATC AVC AFC MC

Cost
0 12 24
1 12 33
2 12 41
3 12 48
4 12 54
5 12 61

3. Inflation is a common problem that every country faces regardless of the level of
development. Distinguish between demand-pull inflation and cost-push inflation. (2*5=10
marks)

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4. Sandun wants to open up his own business. But before entering the market he decided to get
advice to analyze four market models from his younger brother who studied Business Economics
in ICBT.
Imagine that you are the Sandun’s brother and advise him by briefly explaining the four market
models and compare basic characteristics of pure competition, pure monopoly, monopolistic
competition, and oligopoly (with examples for each model) (6*5=30 m arks)

5. In present, Sri Lankan economy faces many problems due to huge deficit in Balance of
Payment. Many economists argue that we have to increase International trade by diversifying
exports.
Using theories where appropriate, discuss how important is international trade to the Sri Lanka
relative to other nations? (30 marks)

<<<End of the Report>>>

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Marking Scheme

Question 01

Marks Criteria
Student has excellent knowledge on PPC and the way of calculating opportunity
cost. And also student has correctly drowned PPC and correctly calculated the
10.00 opportunity cost of both products in two countries. There were no errors in the
report format. In-text references are given correctly.
Student has good knowledge on PPC and the way of calculating opportunity cost.
And also student has correctly drowned the PPC for both countries and correctly
8.00-9.99 calculated opportunity cost of both products but only for a one country. Correct
report format has applied in the report with proper citations.
Student has average understanding on PPC and the way of calculating
opportunity cost. And also student has correctly drowned the PPC of two
6.00-7.99 countries. Correct report format is at acceptable level with minor errors.
Student has limited understanding on PPC and the way of calculating opportunity
cost. And also student has correctly drowned the PPC of one country. No clear or
3.00-5.99 meaningful answers given for the relevant sections and report format are not
properly applied.
Student has no or lack of understanding of the PPC and the way of calculating
0-2.99 opportunity cost. No clear or meaningful answers given for the relevant sections
and incorrect report format with no citations

Question 02

Marks Criteria
16.00-20.00 Student has excellent knowledge on calculating AFC, AVC, ATC and MC. There
were no errors in the report format and all four columns are completed correctly.
12.00-15.99 Student has good knowledge on calculating AFC, AVC, ATC and MC. There
were no errors in the report format and at least three columns are completed
correctly.
8.00-11.99 Student has average knowledge on calculating AFC, AVC, ATC and MC.
Correct report format is at acceptable level with minor errors and at least two
columns are completed correctly.
Student has limited understanding on calculating AFC, AVC, ATC and MC. At
4.00-7.99 least one column is completed correctly. Report format is not properly applied.
Student has no or lack of understanding on calculating AFC, AVC, ATC and MC
0-3.99 No clear explanation of calculation method and incorrect report format.

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Question 03

Marks Criteria
8.00 - 10.00 Student has excellent knowledge on Demand pull and cost push inflation.
Clearly mentioned a valid definition for these two types of inflation and
explained the situation by using graphs. There were no errors in the report
format. In-text references are given correctly.
6.00 – 7.99 Student has good knowledge on Demand pull and cost push inflation. Clearly
mentioned a valid definition for these two types of inflation and explained the
situation by using graphs. Answers are complete but there are some more
explanations can offer. There were no errors in the report format. In-text
references are given correctly.
3.00– 5.99 Student has average understanding on Demand pull and cost push inflation.
Clearly mentioned a valid definition for these two types of inflation and
explained the situation by using graphs. Answers are having certain in depth
analysis. Answers are relevant to the given concepts but not specific. There are
proper citations given. Correct report format is at acceptable level with minor
errors.
1.00 –2.99 Student has limited understanding on Demand pull and cost push inflation.
Clearly mentioned a valid definition for these two types of inflation. No clear or
meaningful explanation given for the relevant sections and report format is not
properly applied.
On or below Student has no or lack of understanding on Demand pull and cost push
0.99 inflation. Answer is lacking of proper explanations. Certain ideas are not
relevant to the given questions and incorrect report format with no citations
Question 04

Marks Criteria
25.00 - Student has excellent knowledge on four market model and how it operates in
30.00 the market. Characteristics of each market and advantages / disadvantages
excellently explain. Valid examples given for each and every market condition.
There were no errors in the report format. In-text references are given correctly.
20.00 – Student has good knowledge on four market model. Answers are complete but
24.99 there are some more explanations can provide. Characteristics of each market
given but no critical discussion apply with valid examples. Correct report
format has applied in the report with proper citations.
Student has average understanding on four market model. Answers are having
10.00– certain general analysis on different types of markets that exist in the economy.
19.99 Characteristics and examples are present but no critical evaluations given. There
are proper citations given. Correct report format is at acceptable level with
minor errors.
Student has limited understanding on cost different types of markets. Answers
are too general and not specifically explained on four market model. No

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5.00 –9.99 specific characteristics given on each and every market category. No clear or
meaningful answers given for the relevant sections and report format is not
properly apply and no citations given.
Student has no or lack of understanding of four market model. Answers are
On or lacking of examples and explanations on market types. Certain definitions on
Below 4.99 market types are not relevant to the given questions. No clear ideas given on
four market model and incorrect report format with no citations given.

Question 05

Marks Criteria
Student has excellent knowledge on international trade. And also about the
current situation of Sri Lankan economy and international trade in Sri Lankan
25.00 - context. Characteristics, trade barriers and the importance are excellently
30.00 explained by using examples .There was no errors in the report format. In-text
references are given correctly.
Student has good knowledge on international trade. And also about the current
situation of Sri Lankan economy and international trade in Sri Lankan context.
20.00 – Characteristics trade barriers and the importance are excellently explained by
24.99 using examples. Answers are complete but there are some more explanations
can provide. Correct report format has applied in the report with proper
citations.
Student has average understanding on international trade. And also about the
current situation of Sri Lankan economy and international trade in Sri Lankan
10.00– context. Characteristics, trade barriers and the importance are explained
19.99 averagely. There are proper citations given. Correct report format is at
acceptable level with minor errors.
Student has limited understanding on international trade. And also about the
current situation of Sri Lankan economy and international trade in Sri Lankan
4.00 –9.99 context. Answers are too general and not specifically explained on international
trade. No clear or meaningful answers given for the relevant sections and report
format is not properly apply and no citations given.
Student has no or lack of understanding on international trade. And also about
On or the current situation of Sri Lankan economy and international trade in Sri
Below 3.99 Lankan context. Answers are lacking of examples and explanations on
international trade. No clear ideas given on international trade and incorrect
report format with no citations given.

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This submission will be assessed as follows Total marks Marks obtained by
Allocated the student for the
answer provided
Question 01 10

Question 02 20
Question 03 10
Question 04 30
Question 05 30
Total Marks 100

Submission Guidelines

 Submission format Report

 Paper Size: A4
 Words: 3000 words
 Printing Margins: LHS; RHS: 1 Inch
 Binding Margin: ½ Inch
 Header and Footer: 1 Inch
 Basic Font Size: 12
 Line Spacing: 1.5
 Font Style: Times New Roman
 Alignment: Justify
 Referencing should be done strictly using Harvard system and in-text references are must
to have in the report
 Give more priority to book references
 Invalid (non- academic) web sites are strictly prohibited