Economic Analysis of the Australian Housing Market BAO1101

INDIVIDUAL ASSIGNMENT

ASSESSMENT 1

ASSESSMENT OVERVIEW

Key Assessment Information

Overview Length or Duration Worth Due

This assessment requires you to apply key economic concepts, principles and theories taught in Week 1 and 2 in answering questions on the home housing market in Australia. No more than 800 words 20% Session 4,23:59 EST

PURPOSE

The purpose of this assessment task is to:

Assess your knowledge and understanding of the topics on market mechanisms, market conditions and government policy which are fundamental to understanding the subsequent advanced topics in this unit;

Measure your ability in using and integrating economic concepts, principles and theories to identify and analyse economic problems/issues and explain sequences of events on the ground of economic reasoning.

The unit learning outcomes assessed are:

LO 1:Implement and explicate core and advanced economic concepts, including recent developments in the discipline;

LO 2:Assess and analyse business problems by applying economic reasoning and analytical skills to make informed judgements and decisions.

ASSESSMENT STRUCTURE

HOME HOUSING MARKET IN AUSTRALIA

You are to answer the below questions in the context of the home housing market in Australia.

Q1) Research and briefly describe the trend of the home housing market in Australia over the past 30 years in no more than 100 words (Hint: Describe the pattern in this trend).

Q2) You are to answer the below sub-questions on how each event would affect the home housing market in Australia using key economic concepts, principles and theories taught in Week 1 and 2.

Treating each sub-question as a separate event and draw separate diagram for each separate event, explain and illustrate how each eventceteris paribuswill affect the supply curve, demand curve, equilibrium house prices and quantity in the home housing market in Australia:

i)Cost of renting becomes expensive and more people found buying a house to be a cost-effective option.

ii) With consecutive increases in mortgage interest rates, more and more borrowers are selling their houses as they find it difficult to meet their mortgage repayments.

iii) People expect housing prices to fall.

iv) Several big housing builders made huge losses due to costly materials, shortage of labour and shipment delays and have gone into liquidation.

v) Strong population growth in Australia.

INSTRUCTIONS

In answering all the questions and sub-questions in this assignment, please note the following requirements:

Use economic principles and models introduced in this unit in your analysis, explanation and discussion.Please note that the written presentation should address the assignment questions, showing understanding and application of the key concepts and theories in the learning program.Be concise and to the point. Marks will not be awarded for assignment that focuses heavily on background and/or event description, without any economic analysis undertaken.

Your answers must be typed.Use graphs where required or appropriateto help illustrate and support your arguments. These graphs may be drawn by hand but should be clearly labelled. Any graph lifted from other sources will not be accepted.

UseTimes New Roman, size 12, for the text. Number the pages.

Conduct research only to understand the economic context of this assignment to facilitate your analysis of the events in each question.

Cite all reference sources(such as academic journals articles, books, book chapters) to acknowledge authors whose words or ideas you incorporated into your assignment. VU deals with plagiarism according to theAcademic Integrity and Preventing Plagiarism Policyopens in new window.

All sources cited must be included in the Reference section.You must use theHarvard Referencing Style. Refer tohttps://libraryguides.vu.edu.au/harvardopens in new windowfor a VU Library guide on Harvard Referencing.

Your individual assignment will be subjected to originality check through plagiarism software in VU Collaborate.Please note that plagiarism will not be tolerated.VU deals with plagiarism according to the Academic Integrity and Preventing Plagiarism PolicyAcademic Integrity and Preventing Plagiarism Policyopens in new window.

Clearly identify each question/sub-questionyou are answering in this assignment.

Your assignment report mustinclude a cover page showing your full enrolled name, VU studenti.d.number and study period.

Please submit the following items to the Assignment Dropbox in VU Collaborate:

Your assignment report inWord document(no pdf file for assignment report);

A properly completed and signedAssessment Declaration formopens in new window.

ASSESSMENT CRITERIA

The following levels of criteria will be used to grade this assessment task:

Criterion 1: Background research

Criterion 2:Identify, apply & explain economic concepts, theories &/or models in the context of the case.

Criterion 3:Discussion & Analysis

Criterion 4: Data visualisation(such as use of diagrams and graphs)

Criterion 5:Economic terminologiesCriterion 6:Writing & Presentation

AccessAssessment 1 (Individual Assignment)rubric for the full marking criteria.