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Arden University © reserves all rights of copyright and all other intellectual property rights in the learning materials and this publication. No part of any of the learning
materials or this publication may be reproduced, shared (including in private social media groups), stored in a retrieval system or transmitted in any form or means,
including without limitation electronic, mechanical, photocopying, recording or otherwise, without the prior written consent of Arden University. To find out more about
the use and distribution of programme materials please see the Arden Student Terms and Conditions.
DFI4001
Introduction to Business Economics
Time Constrained Assessment
Date for Submission: Please refer to the timetable on iLearn
(The submission portal on ilearn will close at 12:00 UK time
on the date of submission)
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Arden University © reserves all rights of copyright and all other intellectual property rights in the learning materials and this publication. No part of any of the learning
materials or this publication may be reproduced, shared (including in private social media groups), stored in a retrieval system or transmitted in any form or means,
including without limitation electronic, mechanical, photocopying, recording or otherwise, without the prior written consent of Arden University. To find out more about
the use and distribution of programme materials please see the Arden Student Terms and Conditions.
Assignment Brief
As part of the formal assessment for the programme you are required to submit an
Introduction to Business Economics Time Constrained Assessment (TCA). Please
refer to your Student Handbook for full details of the programme assessment scheme
and general information on preparing and submitting assignments.
Learning Outcomes:
After completing the module, you should be able to:
1. Demonstrate knowledge of the underlying micro and macro concepts and principles
in the context of organisations and the economy.
2. Understand the main features of the market system and the competitive process.
3. Analyse a firm’s output and profit maximisation decisions under perfect and imperfect
competition.
4. Understand the impact of globalisation on international trade and the process of
exchange rate determination.
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Arden University © reserves all rights of copyright and all other intellectual property rights in the learning materials and this publication. No part of any of the learning
materials or this publication may be reproduced, shared (including in private social media groups), stored in a retrieval system or transmitted in any form or means,
including without limitation electronic, mechanical, photocopying, recording or otherwise, without the prior written consent of Arden University. To find out more about
the use and distribution of programme materials please see the Arden Student Terms and Conditions.
Guidance
Your assignment should include: a title page containing your student number, the
module name, the submission deadline and the exact word count of your submitted
document; the appendices if relevant; and a reference list in AU Harvard system(s).
You should address all the elements of the assignment task listed below. Please note
that tutors will use the assessment criteria set out below in assessing your work.
You must not include your name in your submission because Arden University
operates anonymous marking, which means that markers should not be aware of the
identity of the student. However, please do not forget to include your STU number.
Maximum word count: Max 3,000 words
Please refer to the full word count policy which can be found in the Student Policies section
here: Arden University | Regulatory Framework
Please note the following:
Students are required to indicate the exact word count on the title page of the
assessment.
The word count includes everything in the main body of the assessment (including in
text citations and references). The word count excludes numerical data in tables,
figures, diagrams, footnotes, reference list and appendices. ALL other printed
words ARE included in the word count.
Please note that exceeding the word count by over 10% will result in a 10-percentage point
deduction.
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Arden University © reserves all rights of copyright and all other intellectual property rights in the learning materials and this publication. No part of any of the learning
materials or this publication may be reproduced, shared (including in private social media groups), stored in a retrieval system or transmitted in any form or means,
including without limitation electronic, mechanical, photocopying, recording or otherwise, without the prior written consent of Arden University. To find out more about
the use and distribution of programme materials please see the Arden Student Terms and Conditions.
Assignment Instructions
Instructions:
This assessment should take you no longer than 4 hours and can be completed
at any point during the 24-hour window. Please ensure you give yourself
adequate time to upload your completed paper to Turnitin.
For further guidance on the TCA assessment please click on this link:
https://vimeo.com/398870288/2283356462
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Arden University © reserves all rights of copyright and all other intellectual property rights in the learning materials and this publication. No part of any of the learning
materials or this publication may be reproduced, shared (including in private social media groups), stored in a retrieval system or transmitted in any form or means,
including without limitation electronic, mechanical, photocopying, recording or otherwise, without the prior written consent of Arden University. To find out more about
the use and distribution of programme materials please see the Arden Student Terms and Conditions.
ANSWER ALL QUESTIONS.
Question 1
Read Extract 1 below about Ewa and Tom’s window cleaning business
Ewa and Tom own a window cleaning business which is a monopoly in the village in
which the business is currently run. They have been able to complete a demand and
supply schedule which shows how many households will choose to have their
windows cleaned at a number of different prices, together with the number of houses
Ewa and Tom are willing to supply their services at each price.
In the next village there are two other window cleaning businesses. Ewa and Tom are
trying to decide whether to start offering their services to households in the next
village.

Table 1: Price, demand and supply for Ewa and Tom’s window cleaning business
a. Using the information in Table 1, draw and label a supply and demand diagram for
Ewa and Tom’s window cleaning business.
(5 marks)
b. Ewa and Tom are thinking about offering their window cleaning services in the
next village. Analyse the factors that Ewa and Tom would need to consider when
making this decision.
(5 marks)
c. If Ewa and Tom increase the price of window cleaning services from £10 to £20
then they estimate a price elasticity of demand of -0.4.
Explain to Ewa and Tom what this estimate of price elasticity of demand means.
(5 marks)
d. Evaluate the importance of price elasticity of demand to Ewa and Tom’s business.
Use the information given in Extract 1, Table 1 and your own knowledge.
(5 marks)
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Arden University © reserves all rights of copyright and all other intellectual property rights in the learning materials and this publication. No part of any of the learning
materials or this publication may be reproduced, shared (including in private social media groups), stored in a retrieval system or transmitted in any form or means,
including without limitation electronic, mechanical, photocopying, recording or otherwise, without the prior written consent of Arden University. To find out more about
the use and distribution of programme materials please see the Arden Student Terms and Conditions.
e. Discuss the law of diminishing returns. How does the law explain the supply curve
sloping upwards? Use appropriate graphs to illustrate your answer
(5 marks)
(Total 25 marks)
Question 2
a. Discuss the costs and benefits to a society of a monopoly firm relative to a perfectly
competitive industry
(8 marks)
b. What are the characteristics of an oligopolistic industry? Use examples of a real
oligopoly to support your answer.
(8 marks)
c. Using appropriate illustration, explain Game Theory and Prisoner’s Dilemma. How
does game theory help explain oligopolistic industry?
(9 marks)
(Total 25 marks)
Question 3
a. Using relevant examples, explain the terms moral hazard and adverse selection
(6 marks)
b. Economics deals with the efficient allocation of scarce resources. Discuss how
externalities impact allocation efficiency.
(5 marks)
c. A green tax on companies like concrete manufacturers is being proposed by green
experts and environmentalist groups. In addition to green tax, what other
measures could be implemented to fight negative externalities?
(7 marks)
d. Explain the role of government in managing externalities.
(7 marks)
(Total 25 marks)
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Arden University © reserves all rights of copyright and all other intellectual property rights in the learning materials and this publication. No part of any of the learning
materials or this publication may be reproduced, shared (including in private social media groups), stored in a retrieval system or transmitted in any form or means,
including without limitation electronic, mechanical, photocopying, recording or otherwise, without the prior written consent of Arden University. To find out more about
the use and distribution of programme materials please see the Arden Student Terms and Conditions.
Question 4
a. Gender pay gap is an ongoing challenge impacting the labour market. Using
appropriate concepts evaluate discrimination in the labour market.
(8 marks)
b. In 2018, USA banned the use of Huawei out of suspicion the company was aiding
the Chinese government in its espionage activities. Discuss possible reasons and
implications for a country imposing sanctions on free trade from another country.
(9 marks)
c. UK’s trade deficit increased by £1.4 billion to £64.1 billion in January 2023 putting
strain on the country’s finances. Explain the possible impact of trade deficit on
economic growth.
(8 marks)
(Total 25 marks)
(Grand Total 100 marks)
End of questions
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Arden University © reserves all rights of copyright and all other intellectual property rights in the learning materials and this publication. No part of any of the learning
materials or this publication may be reproduced, shared (including in private social media groups), stored in a retrieval system or transmitted in any form or means,
including without limitation electronic, mechanical, photocopying, recording or otherwise, without the prior written consent of Arden University. To find out more about
the use and distribution of programme materials please see the Arden Student Terms and Conditions.
Referencing Guidelines
You MUST underpin your analysis and evaluation of the key issues with appropriate
and wide ranging academic research and ensure this is referenced using the AU
Harvard system(s).
Follow this link to find the referencing guides for your subject: Arden Library
Submission Guidance
Assignments submitted late will not be accepted and will be marked as a 0%
fail.
Your assessment can be submitted as a single Word (MS Word) or PDF file, or, as
multiple files.
If you chose to submit multiple files, you must name each document as the question/part
you are answering along with your student number ie Q1 Section A STUXXXX. If you
wish to overwrite your submission or one of your submissions, you must ensure
that your new submission is named exactly the same as the previous in order for
the system to overwrite it.
You must ensure that the submitted assignment is all your own work and that all
sources used are correctly attributed. Penalties apply to assignments which show
evidence of academic unfair practice. (See the Student Handbook which is available
on the A-Z key information on iLearn.)
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Assessment Criteria (Learning objectives covered – all)

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