Unit 2 Performance Task: Investigating Market

Impact
Introduction

This unit has explored how market forces address the questions of what, how and for whom
to produce as well as theoretical roles and influences of consumers, workers, producers and
government in addressing these questions. In this performance task, you will examine
current news stories about the Canadian economy and apply some of the theories that you
have learned to the operation of a market.

Your Task

You are an economist for a corporation or a labour union. Your job is to research current
events and report on their possible impact in a particular market or industry in Canada. The
focus of this investigation is a cost-benefit analysis of the impact on the marketplace of a
government initiative or of an economic decision by a large business or labour union.

Task Steps and Requirements

1. Choose an economic decision or proposal that is intended to achieve a specific

economic goal. This decision might have been made by a business or labour union
or by a government initiative in a particular market or industry. Some suggested
topics include corporate acquisitions and mergers; regulation of anti-competitive
behaviour; advertising; consumption taxes on gas or tobacco; price floors and
subsidies in agriculture; production technology, innovation, and productivity;
collective bargaining; labour disputes; privatization and deregulation of government
services.
2. Research the various opinions on the decision or proposal that you have chosen
using electronic newspaper databases on the Internet (see the document called
Canadian News sites).
3. Identify the criteria that at least 3 stakeholders (producer, consumer, labourer, labour
union, government etc) would use to evaluate the impact of the decision on the
marketplace. The criteria might include the impact on the markets involved in terms
of prices, the quantity and quality of what is produced, and other intangible factors
that the market supply and demand analysis might not consider (such as the impact
on citizens forced to make due without a particular good).
4. Complete a cost-benefit analysis to assess the impact on stakeholders. Follow the
model presented in the document called Analyzing a Public Policy Issue from the
Thinking Like an Economist assignment from earlier this week. I have also included a
document called RS 8-3 Cost-Benefit Analysis Worksheet that you might find helpful.
5. Write a memo in the form of an argumentative essay that clearly states your position
based on the conclusions reached in your cost-benefit analysis. Support your
position using the criteria established in the cost-benefit analysis, as well as supply
and demand diagrams, where appropriate.
Assessment Criteria

The following criteria will be used to assess your work:

● Knowledge-​ appropriately and accurately using economic concepts, principles and
terminology related to microeconomics.
● Thinking and Inquiry-​ evaluating the impact and effectiveness of a proposed change;
conducting research effectively in order to locate information from a variety of
sources.
● Communication-​ presenting economic information and analysis clearly, in an
appropriate format and style.
● Application-​ applying the cost-benefit method of inquiry effectively using stakeholder
criteria and economic goals; illustrating how the conflicting self-interests of different
stakeholders affect the achievement of economic goals; building and supporting an
effective argument.