WRITING YOUR ASSIGNMENT:

Word Limit: 3,000 words

• This assignment must be completed individually.
• You must use Harvard Referencing.
• Your work must indicate the number of words you have used. Do not exceed the maximum number of words specified above; all assignments which do so will be penalised. The penalty will be the deduction of marks at the Marker’s judgement.
• Assignment submissions are to be made anonymously. Do not write your name anywhere on your work. Write your student ID number at the top of every page.
• Where the assignment comprises more than one task, all tasks must be submitted in a single document.
• You must number all pages.

Assignment question(s)

The Task

Supply and demand analysis allows us to investigate and understand the operation of markets or
sometimes the failure of markets.

Required:

(i) Using supply and demand analysis identify which you believe to be the main factors in determining the price of diamonds. (40 marks)

(ii) Identify the negative externalities that may arise from excessive tobacco consumption by some individuals. What can governments do to try to reduce this type of consumption? (40 marks)

Note: 20 marks are available for referencing and effective communication

(Total marks available: 100)

Assessment Criteria

In part (i) this assignment require you to demonstrate your knowledge and understanding of the economic problem of scarcity and explain the issues surrounding this problem using demand and supply factors. In particular your analysis should be specifically applied to diamonds and you should demonstrate that you have researched these economic factors with specific reference to diamonds. The answers to the questions must be supported by academic theories and concepts and the paper must comply with the academic essay format and the Harvard referencing guidelines. You must illustrate your answer where possible with suitable diagrams. The discussion in part (ii) must
not be purely descriptive in nature; it should provide clear evidence of understanding of the issues under consideration. Your answer should consider the concept of market failure and identify social costs and benefits. It should also consider the policy measures that government could specifically apply. There is no correct number of academic references to be utilised as the student must draw as many references as required to provide a high quality answer. However, a minimum of 8 academic sources are expected, and a majority of these should be current, internationally peer reviewed articles/journals or accredited textbook references.

Wikis and other sharing sources such as Wikipedia are not acceptable.