Revising my essay doc, you need to follow my instructions in requirement pdf. And you need to draw graph by yourself and the reference you need to use 3 to support your points. All requirements are in the pdfChoose a real-world market and a real-world company that operates in that market. Write a 1,200 wordessay using the tools of economic analysis describing and explaining how a recent or upcoming domestic and/orinternational government policy (implemented after 1 January 2020) could a ect the company, its consumersand, if applicable, broader social welfare. Graphs and gures should be included if they support your analysis.You should summarise your analysis in a single paragraph in your essay’s conclusion. Finally, you shouldbrie y criticise your analysis, emphasising its strengths and weaknesses for understanding and providing policyguidance in the real world. Provide a properly formatted references section (not a bibliography) for all citedclaims.ECON7002 Assignment
Essay: Markets in Action
1,200 words – 35% of course grade
Due 6:00pm, Monday 19th October
Choose a real-world market and a real-world company that operates in that market. Write a 1,200 word
essay using the tools of economic analysis describing and explaining how a recent or upcoming domestic and/or
international government policy (implemented after 1 January 2020) could a ect the company, its consumers
and, if applicable, broader social welfare. Graphs and gures should be included if they support your analysis.
You should summarise your analysis in a single paragraph in your essay’s conclusion. Finally, you should
brie y criticise your analysis, emphasising its strengths and weaknesses for understanding and providing policy
guidance in the real world. Provide a properly formatted references section (not a bibliography) for all cited
claims.
Your essay must be saved as a pdf document and submitted via the Turnitin link in the assignment folder
on the ECON7002 Blackboard website by the due date and time.
This is an exercise in which, among other outcomes, you need to demonstrate your independence in identifying
and conducting an economic analysis of a relevant company+market+policy scenario. All information you
need is contained in this instruction sheet.
1
Task Details
1. Brie y describe the nature and characteristics of your chosen company.
2. Brie y describe the prevailing market structure including (as applicable) relevant demand-side and supplyside elasticities, externalities, public goods features, price controls, taxes, tari s, subsidies, trade quotas
and/or any other forces relevant to market e ciency and the rm’s competitiveness.
3. Brie y describe the recently enacted or upcoming domestic and/or international government policy facing
the market. The policy must be implemented after 1 January 2020. (Please contact Dr Yeo if you would
like an exception to be made.)
4. Describe the announced reason and some other potentially plausible (possibly unannounced) reasons why
the government might want to enact the policy.
5. Using the tools of economic analysis, explain how the announced government intervention will achieve its
stated aims.
6. Note any unintended consequences of the policy, brie y describing how they might arise.
7. List and brie y describe any other reasonable means the government possesses for achieving its stated
aims. Include a short statement with each describing its likely market and welfare impacts. Explain why
the government chose to implement its announced policy instead of adopting another approach.
8. Find and brie y describe a real-life example of an essentially similar government intervention in an
essentially similar market at any time previously anywhere in the world. Did that intervention produce
its intended results? How can that example be used to inform your economic analysis in item 5, above?
9. Conclude your essay with a critical re ection about how useful your economics approach is for understanding and providing policy guidance in the analysed situation in the real world.
2
Clari cations and Guidelines
• Items 5 and 6 are the centrepieces of your work. You should aim to do it well. About 50 to 60% of the
word count should be expended here.

Market structure describes the conditions of the market, e.g., whether it is perfectly competitive, a
monopoly, monopolistic competition, or an oligopoly.
You must clearly state the market structure on which you are basing your analysis.
Justify your statement of the market structure model you use. You might want to consider factors
such as the number of rms operating in the market, the existence of externalities, whether economies
of scale exist etc.
• Except for monopsonies and oligopsonies, you can choose a rm operating in any market structure for
your essay. By the time we have discussed monopolies (lectures 5 and possibly 6), you should have a good
foundation for analysing perfect competition and monopoly market structures. Monopolistic competition
and collusive oligopolies (which are in di erent respects both similar to monopolies) should also be quite
accessible, but you’ll need to read up on these market structures on your own.
• Use proper and consistent referencing style, including in your citations. Guidelines for correct referencing
techniques and presentation style is available in the Essay folder on the ECON7002 Blackboard site.
• Your essay’s word count should be reasonable close to 1,200 words. Penalties may apply otherwise. Your
word count excludes material included in tables, gures, graphs and your essay’s references list.
Remember, good assignments are not characterized by their length, but by the conciseness and
thoughtfulness of the arguments made.
• You will bene t by using diagrams similar to those presented in the course and textbook. These should
be fully and correctly labelled. Appropriate use of diagrams is essential for receiving high marks.
• The assignment is due before 6pm on Monday 19th October. Essays submitted after the due date and
time will be penalised unless prior agreement for late submission has been formally provided by the Course
Administrator. The penalty will be 10% per 24 hour period after the speci ed due date and time. A
description of the process required for obtaining an Extension of Assessment Due Date can be found in
section 6.1 of the ECON7002 Electronic Course Pro le.
• Try to upload your assignment a few hours before the deadline since Blackboard and Turnitin system
overloads can occur close to the deadline time.
3
Frequently Asked Questions

What is a recent or upcoming policy ?
A recent or upcoming policy is a policy that has been introduced in the last 12 months, or that
is planned for the near future. The abolition within the last 12 months or planned abolition of a
government policy also counts as a recent or upcoming policy.

Does the market and company I choose have to be Australian?
No. However, all references must be in English (i.e., if you list a website, journal or newspaper article
as a reference that supports your description of a foreign market, it must be in English).

I do not have the data to exactly plot the aggregate demand/supply curve in my market. What can I do?
In almost all cases, you will not have the time or resources to gather the data to exactly plot the aggregate
demand and supply curves for your market.1
Therefore, your gures will be mostly qualitative rather than quantitative in nature.
The quantitative gure above exactly speci es where the demand and supply curves lie, whereas the
mostly qualitative gure only speci es that the equilibrium price is 2, but leaves open the exact slopes
of D and S , etc. The qualitative gure is nonetheless useful: e.g., by demonstrating that D and S still
satisfy the laws of demand and supply, depicting relative price elasticities of demand and supply, etc.
Despite the absence of detailed information, qualitative gures allow you to draw important conclusions.
E.g., you may be able to conclude from your qualitative gures that after the government intervention, the
market price will fall and consumer surplus will increase, or that the burden of a tax might fall unevenly
on suppliers or consumers, even though you will not be able to determine by exactly how many dollars
the price will fall, exactly how the tax burden will be split, or by exactly how many dollars consumer or
producer surplus will change.

Do I have to format my essay in a particular way?
Yes. Please comply with the following instructions. Any violation (e.g., missing word count) may lead to
penalty.
Include a word count, your personal name, your family name and your student number on your
front page. Your word count should exclude material included in tables, gures, graphs and your
essay’s References section.
Use1.5 line spacing or double line spacing.
Fonts must be easily readable, including those used for gure captions.
1 Of
course, if you can access such data, that is fantastic!
4

My essay is 1,300 words long. Do I have to cut it down to 1,200 words?
Not necessarily. However, you should try to stick as close as possible to 1,200 words. An excellent 1,300
word essay will receive a high mark, while a poor 1,200 word essay will not. However, if you exceed 1,200
words it can be a hint that your essay contains super uous information or is not focused enough, which
may attract a poor mark. Similarly, if your essay contains fewer than 1,200 words, it may indicate that
your essay is not deep or detailed enough.

How do I submit my essay?
The essay must be submitted via the Turnitin link in the Essay folder (in the Assignment section of the
course Blackboard site). The submission must be electronic in pdf format only (no hardcopies or Word
documents).

The Turnitin similarity report shows a similarity of
x%.
Is this still acceptable?
Short answer: I do not know. Long answer: The similarity report is a tool that assists essay graders in
recognising if a part of your essay has been plagiarised. In some cases, the report mistakenly picks up
passages that have been correctly cited. In other cases, the report fails to pick up plagiarised passages.
If your similarity score is 0% but you plagiarised and it is discovered by another method, I will refer
your case for investigation. If your essay contains a correct quote that the report picks up, this will be
ignored. What matters is not primarily the similarity score but that you do not plagiarise — this is an
important responsibility that you have as an author.
Please refer to the following UQ Academic Integrity and Student Conduct page to understand what
constitutes plagiarism. (Select the Academic Misconduct tab.) https://my.uq.edu.au/information-andservices/manage-my-program/student-integrity-and-conduct/academic-integrity-and-student-conduct
Marking Guidelines
Your submission will be graded on your performance in these areas:
• Content: relevance to the question, sound interpretation and understanding of economic theory.
• Clarity and robustness of argument: logical thinking, clarity, succinctness and coherence.
• Fit of the theoretical model and analysis to the presented policy situation.
• Use of clear, well-labelled, relevant diagrams that support your arguments.
• Evidence of reading outside of your main source article and textbook.
• Use of references: correct and consistent citation format in the body of your essay; correct and consistent
referencing format in the References section at the end of your essay. You should support your arguments
with at least three (3) references in addition to material from your textbook. Note that the References
section is just that. It is not a Bibliography (enter references section vs bibliography into your favourite
internet search engine to see the di erence).
5
SCHOOL OF ECONOMICS
GUIDE FOR ASSIGNMENT PRESENTATION
JACKIE ROBINSON
for the School of Economics
Teaching and Learning Committee
The University of Queensland
This Guide has been compiled from the Graduate School of Management
and Department of Management Assignment Writing Handbook
(Carnegie, 1998) and from work previously undertaken by
Bruce Littleboy and Jon Stanford from the
Department of Economics
2001
TABLE OF CONTENTS
1.
Assessment Criteria …………………………………………………………………………………………..1
2.
Planning and Sequence of an Assignment …………………………………………………………….1
3.
Common Specific Instructions Used in Assignment Questions ……………………………….2
4.
Presentation………………………………………………………………………………………………………3
4.1
The Basics……………………………………………………………………………………………..3
4.1.1
General Points……………………………………………………………………………..3
4.1.2
Style …………………………………………………………………………………………..4
4.1.3 Quotes ………………………………………………………………………………………..4
4.2
4.1.4
Clarity ………………………………………………………………………………………..5
4.1.5
Indicating your Intentions ……………………………………………………………..5
Tables and Figures ………………………………………………………………………………….5
4.2.1 Tables…………………………………………………………………………………………5
4.2.2 Figures………………………………………………………………………………………..6
4.3
5.
Non-Discriminatory Language …………………………………………………………………6
Referencing
…………………………………………………………………………………………………..6
5.1
Plagiarism ……………………………………………………………………………………………..7
5.2
When and How to Reference ……………………………………………………………………7
5.2.1 Referencing Systems…………………………………………………………………….8
5.3
In-Text Citation………………………………………………………………………………………8
5.4.
Reference List versus Bibliography…………………………………………………………11
5.5
Reference List Format……………………………………………………………………………12
References
………………………………………………………………………………………16
Acknowledgements
………………………………………………………………………………………16
GUIDE FOR ASSIGNMENT PRESENTATION
An assignment should be regarded as a piece of academic writing. The following comments
and suggestions about the construction and presentation of assignments are intended to
provide a guide. They are not intended to be considered as rigid rules. However, there are a
number of academic conventions which should be met in academic work. Of most
importance in academic writing is an overriding need for internal consistency in presentation.
Internal consistency is achieved by thoroughness and attention to detail in the presentation of
work.
The purpose of an academic piece of writing is to report the results of an investigation to
other members of the discipline for their information, evaluation and criticism.
Communication of the results of academic activity is important as it allows the dissemination
of information and is fundamental to the establishment of groups of people who are interested
in similar problems and who are interested in applying similar analytical techniques to
identify solutions to these problems. Writing an assignment is an exercise in effective
communication and requires more than just learning of techniques of analysis and facts about
the economic process.
There are a number of books available that assist with writing assignments. See for example,
Betts and Seitz (1986) Writing Essays in the Social Sciences and Anderson and Poole (1994)
Thesis and Assignment Writing. It is recommended that students consult these for
information about how to research and write an assignment.
1.
ASSESSMENT CRITERIA
Each course offered through the School of Economics will have stipulated the criteria for
assessment of assignments in the Course Outline. A number of assessment criteria that may
be relevant for all courses are listed below.







Relevance of your answer to the question or task set.
Clarity of expression.
Supporting documentation for arguments.
Proper acknowledgement of documentation and the use of a bibliographic convention.
Logical planning and sequence.
Overall presentation, including correct grammar, spelling and punctuation.
Comprehensive coverage reflecting mastery of set readings and text.
2.
PLANNING AND SEQUENCE OF AN ASSIGNMENT
The assignment should contain at least three well defined and distinct sections:
(a)
(b)
(c)
An introduction (or ‘a beginning’)
The body of the assignment (or ‘a middle’)
A conclusion (or ‘an end’)
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The introduction, which occurs at the beginning of the assignment, should include a
statement of the aims or objectives of the assignment. The introduction provides a
clear statement of the problem or question to be considered; the limitations or
assumptions you plan to use when examining the problem, and the analytical
techniques used. Although the question set will frequently determine the question
posed for the assignment, there is still scope for the introduction to define more
precisely the question or to set the bounds of the assignment. Do not simply state
the title of the assignment or repeat the question posed by the lecturer.

The body of the assignment contains the argument that you present in support of the
question you have posed in the introduction. The argument should be logical and
embody the standard techniques of analysis as well as display familiarity with
standard economic concepts and doctrines.

The conclusion should complete the assignment by following up discussion points
raised in the previous sections. It should relate clearly to your statement of aims and
purpose provided in the introduction. As a general rule, no new material should be
introduced in the conclusion. The conclusion normally should draw conclusions and
point to further directions one could take from matters which have been argued fully
and stated in the body of the assignment. Do not simply repeat, or summarise, what
you have already said in the body of the assignment. Repetition is regarded as
padding.
3.
COMMON SPECIFIC INSTRUCTIONS USED IN
ASSIGNMENT QUESTIONS
Define
Set down the precise meaning of a word or phrase and show why the
distinctions implied in the definition are necessary by expanding on particular
elements that may be sources of confusion or misunderstanding.
Discuss
Investigate an issue by examining the positive and negative arguments and by
exploring interesting alternatives.
Illustrate
Use a model to clarify a particular point or use examples taken from everyday
reality.
Explain
Clarify by the use of explanation, model and example.
Compare
Describe the similarities and differences and evaluate likely outcomes.
Contrast
Present an overview of two points of view and set them in opposition to bring
out the differences.
Describe
Give a detailed explanation and clarification.
Evaluate
Make an appraisal on the basis of pre-established criteria, explore other points
of view and, perhaps, include your personal opinion.
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3
Interpret
Expand the meaning of a particular issue or event.
Justify
Show the basis for a decision or conclusion by the use of an appropriate model
or relevant evidence.
Outline
Describe the major features of an issue or theory omitting minor details and
emphasising structure and key conclusions.
Relate
Show how things are connected to each other and how they influence each
other.
State
Present in brief, clear form.
Summarise
Give a brief overview of the key points of a matter, omitting details and
examples.
Trace
Follow the development of a topic from some point of origin.
4.
PRESENTATION
The style and presentation of assignments are important. Your assignment should be easy to
read and be presented in a way that shows you have organised your material to present your
argument clearly. In addition, your assignment should be referenced where appropriate and
literature cited in the text should be accurately documented.
4.1
THE BASICS
Although there are variations in writing style required by different academic disciplines,
different journals, different universities, and even different schools within the one university,
the guidelines provided in this section should be followed unless you have been given
specific instructions to the contrary.
It is strongly recommended that you use this section as a check list before you submit
every assignment.
4.1.1 General Points







All pages are to be consecutively numbered.
Use one side only of A4 paper.
All pages should be secured with a staple in the top left-hand corner. Do not use
paper clips or pins, and do not use presentation folders.
Assignments must be typed or word processed, not handwritten.
Ensure that your print-out is clear and easy to read.
Spell check your paper, preferably using the Australian dictionary provided in your
word processing program.
Ensure that you keep a copy of your assignment in case the original is misplaced.
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4


Supply an estimated word count on the cover sheet. The word count should include
footnotes but exclude the reference list.
Include your name, student number, course name and course code as well as lecturer
or tutor’s name.
4.1.2 Style








Double line-space your assignment with the following exceptions: block quotes are
single spaced; the reference list is single-spaced with a double line of spacing between
each reference; and the abstract can be single-spaced or 1.5 spaced.
Use a minimum of 12 point font and a maximum of 14 point font with the exception
of headings and footnotes.
It is common practice to use 2 spaces after a full stop and use one space following a
comma, semi-colon or colon.
Although academic writing for the social sciences is frequently written in a formal
third person style, there is no strict convention for doing so. The first person, singular
(I) or plural (we) are acceptable but students are encouraged to check with the lecturer
in charge of their course before adopting a particular style of presentation. In an
academic paper do not use an abbreviation such as ‘eg.’ or ‘ie.’ or ‘&’ or ‘etc.’ unless
it is included in a bracket. In the main text write everything out in full: ‘for
example’, ‘that is’, ‘and so on’.
In an academic paper numbers consisting of one or two words like one, ten, twenty or
two should be written out in full. Never start a sentence with a numeral. To illustrate;
‘47 irrigators were surveyed…’ should be written as ‘Forty seven irrigators were
surveyed…’
Numerals are used when the number is more than two words; for tabulation; statistical
discussion; sums of money; addresses; dates; time; and page, chapter, volume
numbers (for example, 2 June, 2000).
Be consistent in all you do. For instance, the citation in your assignment must be
written in the same way as the citation in the reference list; the form of citation used
must be the same throughout your paper; and the size and style of headings must be
consistent throughout your paper.
Whenever possible include page numbers in your citations. As an example: Tisdell
(1982: 289).
4.1.3 Quotes



Whenever you are using a direct quote, the quote must be placed in quotation marks
(unless it is more than three lines long, a ‘block quote’) and written as it appears in the
original text. If there are obvious mistakes or discriminatory language in the quote,
you should indicate that you are aware of the error by using the term ‘sic’ placed in
square brackets immediately after the inappropriate language. The term ‘sic’ is Latin
for ‘thus’.
Block quotes are used whenever a direct quote is more than three lines long. A block
quote is indented, typed in single spacing, with no quotation marks at each end.
Whenever possible paraphrase information in preference to using direct quotes.
Paraphrasing should not be too close. Try to put other people’s ideas into your own
words. Paraphrasing the work of others however must still be acknowledged by citing
page numbers. Direct quotes should be kept to a minimum.
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Avoid cutting and pasting. Don’t add quotes and paraphrases to make your paper
‘look good’. You should fully understand what an author is trying to convey before
citing any of their ideas. Use quotes and paraphrasing to support your argument.
4.1.4 Clarity


Never assume that the reader will know what the letters in an acronym stand for. The
first time an acronym is used it must be enclosed in a bracket and follow the term it
represents, which is written out in full. As an example: ‘Businesses owned by
governments in Australia, Government trading enterprises (GTEs), include Australia
Post and The Australian National Line. GTEs are concentrated in those markets
where there is a natural monopoly or where there is extensive regulation.’
If English is not your first language it is recommended that you ask someone to read
through your paper to check your English expression before submission. Don’t simply
rely on the rough spelling and grammar checks offered by your software. The
University of Queensland Student Support Services offer a range of support services
for students to improve assignment skills.
4.1.5 Indicating your Intentions




4.2
Just as you indicated the overall aims for your entire assignment in your Introduction,
so you need to let the reader know what you are going to do next, throughout the
assignment. In a lengthy or complex assignment, the first paragraph at the beginning
of every section should tell the reader what you are going to tell them in that section.
Similarly, the final paragraph in each section should tie the contents of the section
together in a mini conclusion.
In like manner, provide one or two connecting sentences if you are changing the
direction of your argument, or introducing a new concept, or moving from one section
to the next.
Finally, just as outlining your intentions at the beginning of a section helps to guide
the reader through the paper, so too, as much as possible, paragraphs should be linked
from one to the next, and so on. Linking one paragraph to the next with the first or
the last sentence presents the assignment in a logical fashion, explaining everything as
you go along.
Don’t devote too many words to saying what you’re going to do and what you have
done. Keep the sign posting to the necessary minimum.
TABLES AND FIGURES
Used appropriately, tables and figures can be a very efficient way to convey a great deal of
qualitative, as well as quantitative, information in a clear and succinct way.
4.2.1 Tables
Whilst tables are usually used for quantitative data they can also be very effectively used for
qualitative data, especially when comparing information from a number of sources. When
using tables ensure that:

The entire contents of the table are double spaced.
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The grid lines are removed.
Every column has a heading.
Each table is numbered.
There is a brief but descriptive title.
The source of the table is cited if it is not your own original creation.
The table will fit on the page (this may require you to reduce the size of the font, no
less than 9 point).
You have explained in the text what the table is all about and the analysis of the
information in the table is appropriate.
The table is placed as close as possible following reference to it in the text.
4.2.2 Figures
A figure is usually described as any type of illustration, other than a table, and includes
charts, graphs, photographs, or drawings (APA, 1994:141). In addition to the above points,
where applicable, when using figures ensure that:



The figure is accurate.
The figure is simple, clean, and free of unnecessary detail.
If the figure is to be reduced, that any lettering, or detail is still dark enough and large
enough to read.
The above points on tables and figures have been adapted from Publication Manual of the
American Psychological Association (APA, 1994:140-141;162).
4.3
NON-DISCRIMINATORY LANGUAGE
Great care must be taken not to use discriminatory language in academic writing. Depending
on the context, disparaging terms can occur in relation to race, age, culture, religion,
background, and disabilities. The most common, and yet normally unintentional, form of
discriminatory language is sexist language. It includes terms such as his, him, her or she
when referring to a position which could be held by either a male or female; mankind instead
of humankind; or manned instead of staffed; air hostess instead of flight attendant, and so on.
Further details about non-discriminatory language can be found in the Style Manual for
Authors, Editors and Printers (AGPS, 1994). In addition, The University of Queensland’s
Office of Equal Opportunity has produced a number of leaflets which are available, free of
charge, to students and staff. One is called ‘A Guide for the Use of Non-sexist Language’
(OEO, 1998), the other ‘A Guide to Avoiding Racism through Language’ (Vice-Chancellor’s
Committee Against Racism, 1995).
5.
REFERENCING
This section provides information about when and how to reference within the assignment
and then describes the presentation of the reference list. Complete and accurate referencing
is essential for academic writing. There are three main reasons why full referencing is
essential.
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7



5.1
The first is that when another writer’s work is used without being referenced the act of
plagiarism has been committed.
The second reason for referencing is so that anyone reading the paper can follow up
any ideas or concepts that have been presented. This is especially important in
academic writing where people involved in research may read the paper. One of the
main ways of researching a topic is to read what other people have written and then
follow up some of the references they have cited. Then, after those ‘follow-up’
papers have been read the researcher can continue the search-trail by tracking down
more references cited in those follow-up papers, and so on. This is known as a
bibliographical chain. This research is difficult if papers are not fully and accurately
referenced.
The third reason why referencing is important is that it adds credibility to the
argument that you are presenting. As discussed in the previous section, if an
argument is to have any credibility it must be supported by evidence. That evidence
must be referenced.
PLAGIARISM
Plagiarism is the act of passing off as your own work another person’s writing, words, or
ideas. You must make it clear which ideas and which words you have obtained from
someone else. Superficial and minor changes do not disguise your use of the words of
someone else. You commit plagiarism if you do not acknowledge the source of a direct
quote, or a specific piece of writing that you have paraphrased, or even if you describe an
idea or concept that you have heard or read somewhere without a reference or
acknowledgement. Under the University of Queensland Act Statute 13, in conjunction with
Assessment Rules 18, 1 and 26, plagiarism is subject to disciplinary action and can even result
in exclusion from the University.
5.2
WHEN AND HOW TO REFERENCE
No matter how familiar the topic is, in an academic assignment every idea and every concept
that rests on subject-specific knowledge must be referenced. There is, however, a concept
known as ‘assumed knowledge’ which refers to information that is commonly known and
rarely in dispute, and as such it does not need a reference. Assumed knowledge includes such
things as the sun rises in the east, humans need fresh air, water, and food to survive, and
demand curves slope down. However, when writing an assignment you are using your
references partly to demonstrate that you have read widely, that you know who the authority
figures are on whom your ideas are based, and you are not just making intuitive assumptions.
When in doubt, include a reference. If the reader of the paper can read something that you
have written and ask questions like: ‘Who says?’ or ‘How do you know that?’ or ‘On what do
you base that comment?’ then what you have written needs to be referenced. The following
list contains a few examples of material that must be referenced.

Commonly, a claim will be prefaced with something like ‘writers agree that …’. The
first thing the maker will say is ‘which writers’, ‘who are they’. If you use an
attribution such as ‘writers agree’ you must include at least one or two references. So
your claim might read: ‘writers, such as (reference; reference), agree that …’

If you think of a common concept that you want to include in your paper, such as
motivated staff are more productive, ideally, it should be referenced even though you
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8
intuitively thought of it and didn’t actually read about it in the course of your
research. This is because it is a concept that does not owe its existence to your own
original creative thought. If you use it, you will have to search the literature for some
‘authority’ figure who has already said it. You can be assured that if you search you
will find it there (and you will also learn more about the concept).

All tables, or figures, or graphs that are not original but have come from another
source must be referenced, complete with a page number, whether they are in the
body of the paper or in the appendices.

It is not sufficient to say that the information, for example, in your case study has
come from numerous brochures, leaflets, reports and interviews with staff and
management. They all must be individually referenced if they are used. As an
example, if you take information about a company from its annual report then the
annual report must be cited against that piece of information and then listed in the
reference list. Likewise, if you take statistical information from an ABS publication,
then that publication must be cited and listed in the reference list. Yet again, if you
discuss information that you obtained during an interview, the interviewee’s name
must be cited. However, personal communications are not normally listed in the
references.
5.2.1 Referencing Systems

The two main forms of referencing are the footnote or endnote form and the authordated method, sometimes called the Harvard system. Nevertheless, within these two
forms there are literally hundreds of variations as evidenced by the claim that the End
Note 2 plus referencing software package ‘includes more than 300 styles’ (Nile,
1997:135).
There are two important rules for referencing:

Be consistent.

Provide sufficient information for your reference to be found.
These rules are applicable for both in-text citation (Section 5.3) and for listing the references
(Section 5.5).
5.3
IN-TEXT CITATION
The following in-text citation examples all follow the American Psychological Association
(APA), author-date method. Note the placement of commas, semi-colons, colons and full
stops.
(i)
Direct quotation from any single source – book, journal, newspaper:
Note that whenever possible you must include the page number(s) in the citation.
 School of Economics, The University of Queensland
9

Hanley and Spash (1993:122) state that ‘Economic value is measured by the
summation of individual preferences; for valuation to lead to an optimal
allocation of resources, individuals should be perfectly informed’.
‘Economic value is measured by the summation of individual preferences; for
valuation to lead to an optimal allocation of resources, individuals should be
perfectly informed’ (Hanley and Spash, 1992:122).

See sub-section 5.5 for an example of how this citation will appear in the reference
list.
(ii)
Combined paraphrase and direct quote from the internet:
Ericsson, with 70,000 employees in over 100 countries have stated that one of
their visions ‘is the learning organisation, where learning is an integrated part
of the daily work’ (Ericsson, 1997).

See sub-section 5.5 for an example of how this citation will appear in the reference
list.
Remember, there is no guarantee that the information on the Internet is accurate or
credible. And if you do include a reference from the Internet save a copy of the
information you are citing, because if you or your lecturer want to check on the
reference at a later stage, it might have been removed by the time you go back there.
(iii)
Paraphrasing:

(iv)
Classical economic analysis relies on the assumption that the economic agent
has a specific goal, and that the economic agent is rational (Simon,
1976:130-1).
Citing two or more authors for the one paper:
Note that the names appear in the order that they appear on the book title page or the
paper. They are not put into alphabetical order. For the first citation:

Hanley, Shogren and White (1997) or (Hanley, Shogren and White, 1997)
For the second and subsequent citation:

(v)
Hanley et al. (1997) or (Hanley et al., 1997)
A paraphrase when a number of different authors, in different papers or books,
have said the same thing.
Cite the names in alphabetical order separated by a semi-colon. Where possible,
provide page numbers for the location of the material within each reference.
 School of Economics, The University of Queensland
10

(vi)
(vii)
Given a definition of optimality, decision rules are developed that result in an
optimal solution consistent with the stated decision rule (Simon, 1959;
Keeney and Raiffa, 1996; Nijkamp et al., 1990).
When different authors have the same last name include their initials for
differentiation in the in-text citation:

It is a manager’s responsibility to rethink their business strategy on a regular
basis (Smith, P.T., 1994:24).

Global companies must be concerned with universal values (Smith, A.D.,
1983:19).
When the one sentence is made up of two or more ideas from different authors:
Note that each citation is placed at the end of the concept to which it refers.

A major human resource challenge of the multinational company is
international placements (Brett and Stroh, 1995:412) and the ‘seven Cs of
international human resources management’ as described by Derek
Torrington (1994:106).
(viii) Secondary source:

(ix)
Organisations are concentrating more on ‘the attitudinal and behavioural
characteristics of employees’ (Townley, 1989, as cited in Armstrong,
1992:135).
Personal communication:
This is similar to an interview, though, usually less formal.

As David Suzuki (1992:pers.comm.) said…
This citation does not normally appear in the reference list.
(x)
An organisation with a long name as the stated author:
As an example: World Commission on Environment and Development (WCED).
This is cited as:

The Brundtland Report, Our Common Future (WCED, 1987) detailed in a
simple and yet dramatic way…
See sub-section 5.5 for an example of how this citation will appear in the reference
list.
 School of Economics, The University of Queensland
11
(xi)
When no publication date is available cite as ‘nd’ for no date:

The Officecare program has been designed to raise environmental awareness
amongst Australian office workers (Fuji Xerox, nd:3).
See sub-section 5.5 for an example of how this citation will appear in the reference
list.
(xii)
A block quote is used when a direct quote is longer than three lines:
Note that the quote is single spaced, indented on both sides, and has no quotation
marks.
Environmental management is essentially conflict analysis characterised
by technical, socioeconomic, environmental and political value
judgements. A typical decision making process will be characterised by
the search for acceptable compromise solutions, an activity which is
compatible with the ‘satisficing principle’ inherent to procedural
rationality. (Froger and Munda, 1998:175)
When the beginning of the original sentence is omitted from the beginning of the
block quote this is indicated with three full stops […], known as an ellipsis.
Similarly, if you end the block quote before the end of the sentence, then finish with
an ellipsis to indicate that the original text continued on.
As an example:
… various hierarchical conflicts may emerge between regional government
institutions and the central government, which again implies a multiple objective
decision situation… (Froger and Munda, 1998:177).
(xiii) If an entire section is based on the one source, you can footnote the fact by
stating:
This section follows the work of Simon (1976:130-31).
This form of referencing, however, should be done sparingly.
For a more detailed examination of referencing, consult the Style Manual for Authors,
Editors and Printers (AGPS, 1994).
5.4
REFERENCE LIST VERSUS BIBLIOGRAPHY
Whilst the terms ‘reference list’ and ‘bibliography’ are often used interchangeably they do
refer to different forms of lists and it is important to know the difference.
A Bibliography is the name given to a complete, alphabetical list of all the material you have
consulted in the preparation and writing of your assignment, whether you have quoted the
material or not (AGPS, 1994:145).
 School of Economics, The University of Queensland
12
A Reference List is a complete list, in alphabetical order, only of the material actually cited
in the assignment (AGPS, 1994:145).
When writing university assignments only use a reference list, unless you have been asked to
do something else.
5.5
REFERENCE LIST FORMAT
It is important that you present your references in a style that is consistent throughout. If you
are in doubt about the style of presentation you are advised to check with the lecturer in
charge of your course.

Use single line spacing with a double line of space between references.

Do not number the references or use dot points at the beginning of the reference.

Indent the second and subsequent lines of the reference by one tab space.

All references must be listed in alphabetical order by the first author’s last name.

Do not make a series of separate lists for journals, books, interviews and so on.
Combine all references in the one alphabetical list.

When listing more than one reference by the same author, list in date order.

When listing more than one reference by the same author published in the same year,
differentiate by adding a,b,c, and so on after the year. To illustrate: 1997a; 1997b;
1997c.

All book titles and the titles of journals are to be either underlined or typed in italics.

All titles of journal articles are to be typed in normal font and enclosed in single
quotation marks.

References must include the names of all listed authors, in the order in which they
appear in the publication. If you choose to write the author’s first name in full, rather
than just the initial of their name, then you must provide this information for all listed
authors.
(i)
Referencing books

Books must include the names of all the authors, the year of publication, the book title,
the publisher’s name and the city of publication. Following are two examples of how
to reference the same book. The first example has the title underlined and in the
second example the title has been typed in italics. In addition, the first example
provides the first name of each author in full, the second example provides the initials
only. After this example, all further examples will use italics for the titles and initials
for the first name of authors. It is stressed that both styles are acceptable but that you
must be consistent in your choice.
 School of Economics, The University of Queensland
13
Hanley, Nick and Clive L. Spash. 1993. Cost-Benefit and the Environment. Edward Elgar:
Aldershot.
Hanley, N. and Spash, C.L.
Aldershot.
1993.
Cost-Benefit and the Environment. Edward Elgar:
(ii)
A paper or chapter from an edited collection

A paper from an edited collection should be referenced as follows.
Froger, G. and Munda, G. 1998. ‘Methodology for Environmental Decision Support’. In
Valuation for Sustainable Development. Edited by S. Faucheux and M. O’Connor.
Edward Elgar: Aldershot: 167-186.
(iii)
Journal articles

All journal articles must include the names of all the authors, the year of publication,
the title of the article, the title of the journal, the volume number, issue number if
appropriate, and page numbers of the complete article. An issue number should be
provided in situations where the pagination is not continuous through the volume of
the journal.
Simon, H.A. 1979, ‘Rational Decision Making in Business Organisations’, American
Economic Review, 69:493-513.
(iv)
Conference papers

Conference papers that have not been published in Conference Proceedings should be
referenced with the full details of the conference, including the organisation holding
the conference, the title of the conference and the location of the conference.
Rolfe, J. and Bennett, J. 2000. ‘Testing for Framing Effects in Environmental Choice
Modelling’, Paper presented to the 44th Annual AARES Conference: Sydney.
(v)
Newspaper article

Newspaper articles should be referenced in a similar manner to a journal with the
name of the journalist first, the year of publication, the heading of the article, name of
the newspaper, date of publication, and page on which the article appeared.
 School of Economics, The University of Queensland
14
O’Brien, N. 1995. ‘Director jailed over toxic waste dumping’. The Australian. 10 March:3.

If the newspaper, magazine or journal article does not have the journalist’s by-line
then lead the reference with the name of the paper. The second example, below,
would be followed if the article has no journalist’s by-line and no article title.
Economist. 1994. ‘Regulate us please’. The Economist 8 January: 330:54
Australian. 1997. The Australian. 7 July:35.
(vi)
Citation of abbreviations or acronym

The citation in the paper must be the same in the reference list. Therefore, if an
abbreviation or acronym has been used in the in-text citation, as an example, (WCED,
1987:213), then for consistency and to keep the reference list in alphabetical order
reference as follows:
WCED (World Commission on Environment and Development). 1987.
Future. The Brundtland Report. Oxford University Press: Oxford.
Our Common
(vii)
Older books

When older books have been reprinted both the reprint year, as cited in you your
assignment, and the original publication date, put in square brackets, should appear in
the reference list. All details, other than the original publication date, will relate to the
reprint edition from which your citation came.
Leopold, A. 1991 [1949]. A Sand County Almanac. Ballantine Books: New York.
(viii) Government reports or statistical information

A selection of government reports or statistical information published by the
government is referenced below.
Australian Bureau of Statistics (ABS). 1999. The Population by Age and Sex, Queensland,
June 1999. Cat. No. 3235.3. AGPS: Canberra.
Australia, Parliament. 1976. Department of Foreign Affairs Annual Report 1975.
Parliamentary Paper 142. AGPS: Canberra.
 School of Economics, The University of Queensland
15
Commission of Inquiry Into Poverty. 1975. Law and Poverty in Australia. Second Main
Report (Prof. R. Sackville, Commissioner).AGPS: Canberra.
Department of Foreign Affairs. 1975. Annual Report 1975. AGPS: Canberra.
Resource Assessment Commission (RAC). 1992, Multi-criteria Analysis as a Resource
Assessment Tool. RAC Research Paper No.6. AGPS: Canberra.
(ix)
Internet sources

All Internet sources must be reference in a similar manner to newspaper articles with
the Internet site included, and the date stated on the site if available, plus the date you
visited the site.
Murray-Darling Basin Commission. 2000. ‘Current Understanding of Dryland Salinity Risk’.
http://www.ndsp.gov.au/salinity/tools/html/A4.htm
October 2000.
Visited, 5
December, 2000.
A more detailed list of suggested forms of Internet referencing can be found at the
following sites.
http://www.ipl.org/ref/QUE/FARQ/netciteFARQ.html
http://www.english.uiuc.edu/cws/wworkshop/bibliography/mla/mlamenu.htm
(click on link at bottom of page – “Citing Sources from the Internet”)
(x)
Videotape

Reference a videotape as follows. Note that as the tape has also been produced by
Fuji Xerox and has no stated production date, ‘nd’ is used.
Fuji Xerox. nd. Putting the Future First. Environmental report on video tape. Fuji Xerox:
Australia.
(xi)
Computer software program

Reference a computer software program as follows.
Niles and Associates, Inc. 1997. Endnote 2 plus. 3rd edition. Niles & Associates: Berkley.
 School of Economics, The University of Queensland
16
REFERENCES
AGPS (Australian Government Publishing Service). 1994.
Editors and Printers. Fifth edition. AGPS: Canberra.
Style Manual for Authors,
Anderson, J. and Poole, M. 1994, Thesis and Assignment Writing. 2nd Edition. Wiley & Sons:
Brisbane.
APA (American Psychology Association). 1994. Publication Manual of the American
Psychology Association. APA: Washington.
Betts, K. and Seitz, A. 1986. Writing Essays in the Social Sciences. Nelson Wadsworth:
Melbourne.
Niles and Associates, Inc. 1997. Endnote 2 plus. 3rd edition. Niles & Associates: Berkley.
OEO (Office of Equal Opportunity). 1998. ‘A Guide for the use of Non-sexist Language’.
Leaflet on non-sexist language available from the Office of Equal Opportunity. The
University of Queensland: St Lucia.
Vice Chancellor’s Committee Against Racism. 1995. ‘A Guide to Avoiding Racism through
Language’. Leaflet on non-racist language available from the Office of Equal
Opportunity. The University of Queensland: St Lucia.
ACKNOWLEDGEMENTS
This publication has drawn heavily from the Graduate School of Management and
Department of Management, Assignment Writing Handbook (Carnegie, 1998). Dr Bob
Jackson has made a valuable contribution to ensuring the accuracy of this publication.
Members of the School of Economics, Teaching and Learning Committee have made a
number of valuable recommendations.
 School of Economics, The University of Queensland
ECON7002 Essay
by Siqi Liang
Submission date: 14-Oct-2019 01:41AM (UTC+1000)
Submission ID: 1191753045
File name: ECON7002_Essay.pdf (170.88K)
Word count: 1273
Character count: 6950
1
2
3
4
ECON7002 Essay
GRADEMARK REPORT
FINAL GRADE
GENERAL COMMENTS
100
Instructor
/100
PAGE 1
PAGE 2
Comment 1
batteries?
Comment 2
ok
PAGE 3
PAGE 4
Comment 3
Specifically what do you mean by this?
Comment 4
Overall, the best assignment I’ve marked so far.
PAGE 5
GRADING FORM: ECON7002 ESSAY SEM 2
SIQI LIANG
100
INTRODUCTION (20%)
Clear, concise, well-presented, pertinent description of: (a) the chosen
company and its relevant characteristics/nature. (b) the chosen
company’s market structure (based on presented evidence-based
argument). (c) a single relevant upcoming or recently enacted
government policy change. (d) the announced reason and other
potentially plausible reasons why the government might want to enact
the policy. NOTE: (c) a recent or upcoming policy is a policy introduced
in the last 12 months (leeway to January 2018), or that is planned for
the near future. The abolition within the last 12 months or planned
abolition of a government policy also counts as a recent or upcoming
policy.
20
ANALYSIS (60%)
Demonstrated grasp of relevant policy implications; logical thinking,
coherence, conciseness, clarity and robustness of microeconomic
analysis of announced policy change, including: (a) appropriateness
and quality of selected analytical approach – well-reasoned use of
microeconomics theory in analysing the announced policy change,
well-reasoned analytical conclusions including of unintended
consequences. (b) description of alternative means the government
can use for achieving its aims, including descriptions of likely market
and welfare impacts, explaining why the government chose its
announced approach. (c) literature support of essay’s analysis: properly
presented arguments supported by well-cited SCHOLARLY quotes and
references, few if any unsupported opinions (excepting commonly
accepted facts). (d) diagrammatic support of essay’s main analysis: use
of clear, well-labelled, relevant, properly referenced diagrams/tables
that support the analysis.
60
CROSS-COMPARISON (10%)
Real-life example of an essentially similar government intervention in
an essentially similar market at any time previously anywhere in the
world, noting: (a) whether the intervention produced its intended
results, (b) how it informs the essay’s economic analysis.
10
CRITICAL REFLECTION (10%)
Critical reflection of the analytical approach, emphasising its strengths
and weaknesses for the real world.
10
MAJOR PENALTIES
(Sum of all penalties not to exceed awarded points. Ensure no double
counting.) 1. (Deduct up to 80%) REPORT DOES NOT MEET
ASSIGNMENT REQUIREMENTS: selected issue / policy debate /
analytical approach is not relevant to ECON7002, e.g., student
performs only macroeconomics / high level analysis with no/little
microeconomics analysis, e.g. of US-China trade war. 2. (Deduct up to
90%) Plagiarism in whatever form, especially looking out for
“synonymisation”. 3. Late submission: penalised at 10% of the total
value of the assignment per day. No marks if > 3 days late. NOTE: A
handful of students have obtained submission date extensions – these
are noted in the Instructor Notes field in the Blackboard Grade centre
assignment record. 4. Word count: deduct 3% for each 150 words
quantum above/below 1000 words (Note: title page, references section,
tables and diagrams do not add to word count).
MINOR PENALTIES
(Sum of all penalties not to exceed awarded points. Ensure no double
counting.) (Deduct up to 30%) Poor choice of announced policy: must
be no earlier than January 2018, in English and freely accessible on
the internet. (Deduct up to 20%) Writing style: incorrect grammar or
spelling, long or disconnected sentences, over-use of quoted material,
incoherence, sloppiness. (Deduct up to 20%) Poorly or ineffectively
organised report; unclear or illogical flow of ideas; ineffective, badly
composed or unclear arguments. (Deduct up to 20%) Improper, lack of,
or extraneous citations and references; degree of uncited and/or
unscholarly opinions; supplying a Bibliography rather than a
References section. (Deduct up to 10%) Lack of evidence of reading
outside of the article and course textbook (require at least three (3)
references in addition to material from the textbook).
Essay – Markets in Action
by Senja Hirvonen
Submission date: 11-Oct-2019 09:04AM (UTC+1000)
Submission ID: 1190374403
File name: ECON_Essay.pdf (175.91K)
Word count: 1383
Character count: 7537
1
2
3
4
Essay – Markets in Action
GRADEMARK REPORT
FINAL GRADE
GENERAL COMMENTS
96
Instructor
/100
PAGE 1
PAGE 2
Comment 1
Elasticity of supply?
PAGE 3
Comment 2
Impact on consumer surplus?
PAGE 4
PAGE 5
Comment 3
Excellent
Comment 4
How conclusions can you draw from Indonesia’s example that are relevant to the price floor in
Australia?
PAGE 6
PAGE 7
PAGE 8
GRADING FORM: ECON7002 ESSAY SEM 2
SENJA
HIRVONEN
96
INTRODUCTION (20%)
Clear, concise, well-presented, pertinent description of: (a) the chosen
company and its relevant characteristics/nature. (b) the chosen
company’s market structure (based on presented evidence-based
argument). (c) a single relevant upcoming or recently enacted
government policy change. (d) the announced reason and other
potentially plausible reasons why the government might want to enact
the policy. NOTE: (c) a recent or upcoming policy is a policy introduced
in the last 12 months (leeway to January 2018), or that is planned for
the near future. The abolition within the last 12 months or planned
abolition of a government policy also counts as a recent or upcoming
policy.
19
ANALYSIS (60%)
Demonstrated grasp of relevant policy implications; logical thinking,
coherence, conciseness, clarity and robustness of microeconomic
analysis of announced policy change, including: (a) appropriateness
and quality of selected analytical approach – well-reasoned use of
microeconomics theory in analysing the announced policy change,
well-reasoned analytical conclusions including of unintended
consequences. (b) description of alternative means the government
can use for achieving its aims, including descriptions of likely market
and welfare impacts, explaining why the government chose its
announced approach. (c) literature support of essay’s analysis: properly
presented arguments supported by well-cited SCHOLARLY quotes and
references, few if any unsupported opinions (excepting commonly
accepted facts). (d) diagrammatic support of essay’s main analysis: use
of clear, well-labelled, relevant, properly referenced diagrams/tables
that support the analysis.
60
CROSS-COMPARISON (10%)
Real-life example of an essentially similar government intervention in
an essentially similar market at any time previously anywhere in the
world, noting: (a) whether the intervention produced its intended
results, (b) how it informs the essay’s economic analysis.
7
CRITICAL REFLECTION (10%)
Critical reflection of the analytical approach, emphasising its strengths
and weaknesses for the real world.
10
MAJOR PENALTIES
(Sum of all penalties not to exceed awarded points. Ensure no double
counting.) 1. (Deduct up to 80%) REPORT DOES NOT MEET
ASSIGNMENT REQUIREMENTS: selected issue / policy debate /
analytical approach is not relevant to ECON7002, e.g., student
performs only macroeconomics / high level analysis with no/little
microeconomics analysis, e.g. of US-China trade war. 2. (Deduct up to
90%) Plagiarism in whatever form, especially looking out for
“synonymisation”. 3. Late submission: penalised at 10% of the total
value of the assignment per day. No marks if > 3 days late. NOTE: A
handful of students have obtained submission date extensions – these
are noted in the Instructor Notes field in the Blackboard Grade centre
assignment record. 4. Word count: deduct 3% for each 150 words
quantum above/below 1000 words (Note: title page, references section,
tables and diagrams do not add to word count).
MINOR PENALTIES
(Sum of all penalties not to exceed awarded points. Ensure no double
counting.) (Deduct up to 30%) Poor choice of announced policy: must
be no earlier than January 2018, in English and freely accessible on
the internet. (Deduct up to 20%) Writing style: incorrect grammar or
spelling, long or disconnected sentences, over-use of quoted material,
incoherence, sloppiness. (Deduct up to 20%) Poorly or ineffectively
organised report; unclear or illogical flow of ideas; ineffective, badly
composed or unclear arguments. (Deduct up to 20%) Improper, lack of,
or extraneous citations and references; degree of uncited and/or
unscholarly opinions; supplying a Bibliography rather than a
References section. (Deduct up to 10%) Lack of evidence of reading
outside of the article and course textbook (require at least three (3)
references in addition to material from the textbook).
1
ECON7002 Essay
Student Name: Xiaoyi Nie
Student number: 46168739
Due Date: 19th,October 19, 2020
Word count: 1179
2
China Electric Car Industry
Company Overview
The Chinese car industry is among the fastest-growing sectors in the country. Electric
cars have gained popularity in the recent past, as evidenced by the annual sale of more than 1.2
million electric vehicles. China’s electric car industry focuses on environmental sustainability
and provides customers with clean energy.
The chosen company Chery is one of the leading firms in the industry. The organization
was established in 2003 and generate revenues of $351.42 million in 2019. The market for the
company is highly diverse. Since there are not many companies in the industry that produce
electric vehicles, the market cannot be perfectly competitive (Marshall, 2013). Understanding the
industry’s market structure helps identify its efficiency, need for government intervention, and
the effect of various government policies.
Market Structure
The electric car industry is not perfectly competitive since it fails to meet the demand and
supply-side elasticity associated with such a market structure. The market has only a few firms
that are dedicated to the provision of electric cars. This status differs from the demand and
supply elasticities in the market where the suppliers and buyers are many, giving it an oligopoly
structure (Marshall, 2013). Oligopolies are characterized by a few firms in the market that have a
high impact on the organization’s overall performance. The market demand elasticity is low since
few people are dedicated to the purchase of electric cars. The market is also characterized by
relative elasticity of supply since the suppliers in the market are limited. There is no
homogeneity of the products, and hence the market is not in perfect competition. Price control by
3
the few producers in the market equally makes it an oligopoly instead of a perfect competition.
The oligopoly nature of the market is summarized below.
Figure 1: Oligopoly Nature of the China Electric Car Market.
Source: (Marshall, 2013).
As indicated above, the excess quantity is shared by the companies that operate as cartels
in the market. The elasticity of demand and supply is low. Due to this form of market structure,
externalities are high as the firms exploit the customers. They are likely to operate in a manner
that harms the environment due to the string cartels.
The electric car industry offers public goods. The organization’s two critical public goods
characteristic is that the goods are non-rivalry and non-excludable, implying that the goods are
available for customers within the economy. Price controls are not in place, and tariffs payments
4
are not standard in the industry. Subsides have been established in electric car manufacturing, but
the quota is yet to be adopted. This element indicates that although the industry is an oligopoly, it
is moderately efficient.
Government Policy
The upcoming government policy involves China’s decision to extend subsidies in the
form of rebates for electric vehicles. The subsidies will nevertheless be reduced at the close of
2020 by 10% (Bloomberg News, 2020). Subsidies enable an organization to sell the goods at
reduced prices while still making the intended profits. The subsidies are also likely to allow the
locals to purchase electric cars when individuals’ earnings have significantly declined due to
Covid-19. Subsidy will also boost more production in the market. An increase in the number of
cars produced and sold in the country will improve the gross domestic product. The growth in
GDOP will in turn result in enhanced wellbeing of the locals within the country. Through
enhanced employment levels and increase in the employees’ series and wages. The subsidy
graph is as summarized below.
Figure 2: Effect of Government Subsidy on the Electric Car Industry
Source: Marshall (2013).
5
As indicated above, there is a leftwards shift in supply and demand as the price of the goods
declines in the market.
Reason for Subsidy
The main reason for the subsidies is that the country’s electric vehicles are expensive and
unaffordable to many citizens. Producing electric cars is costly, and hence the manufacturers
may not be able to reduce their price. Besides, the Covid-19 outbreak has led to the loss of
revenue among many people within the country. Subsidizing the vehicles will thus make them
more affordable in the context of the Covid-19 pandemic. The electric is environmentally
friendly, and their usage should be promoted (Bloomberg News, 2020). Government support is
necessary to encourage citizens to embrace electric cars and encourage environmental
sustainability in the country.
Economic Analyses
The economic analyses of the subsidy involve the demonstration that through
establishing an allowance for electric vehicles, the demand for such cars in the country will
increase. The reduction in prices increases the demand for cars in the country, as demonstrated in
the diagram below.
Figure 3: Relationship Between Low Prices and Demand for Electric Cars
6
Source: Marshall (2013).
As indicated above, the government’s setting of subsidies will benefit both the producer
and the customers. Producers will enjoy the subsidy amount from the prices while the customers
will have access to cheaper products. The adoption of subsidies is thus an excellent solution to
increase electric cars’ affordability in the country.
Policy Consequences
Adverse consequences may arise during the implementation of the policy. The
manufacturers may exploit the customers by failing to sell the products at a subsidized price. The
policy may also make the government lose high funds in subsidies, which would otherwise have
been set aside for other constructive investments (Marshall, 2013). These adverse effects will
limit the usefulness of subsidy as government intervention. When implementing a policy, the
government needs to consider the damaging effects of such a system.
Alternative Policy
Instead of allocating funds to manufacturers in the form of subsidies, the government
could set price ceilings. The implication is that firms would not set prices beyond the
government’s level, but they can lower it. Nevertheless, the government opted for the subsidies
since the manufacturers could readily accept them. It will also be in the best interest of the
customers (Marshall, 2013). It may not be possible for organizations to continue engaging in
production and selling electric cars at a low price since the cost of producing them is high.
Subsidy of Other Products
In the past, the Chinese government has engaged in the subsidy of drugs. The move
resulted in increased affordability of the drugs in the market. This move led to an increase in the
health wellbeing of the locals (Marshall, 2013). The government’s move to subsidize the cars
7
will positively impact the industry due to the vehicles’ improved affordability. Economic
analyses of subsidies help identify how both the producers and the customers benefit when goods
are subsidized. The adoption of subsidies, in this case, will boost the sale of electric cars.
Conclusion
The Chinese electric car market structure is an oligopoly since it is characterized by many
buyers but limited sellers. The analyses of subsidies will limit the exploitation of the residents by
the oligopoly companies. In the past, the government has adopted similar subsidies that worked
successfully. The subsidy will thus reduce the cost of the vehicles, enabling many citizens to
afford the products. Government regulation has helped address the weaknesses of perfect
competition.
8
References
Chery (2020). About us. Retrieved from https://igamingbusiness.com/cherry-reveals-104revenue-growth-in-2017/
Marshall, A. (2013). Principles of economics. Hound mills, Basingstoke, Hampshire: Palgrave
Macmillan.

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