ASSESSMENT EXEMPLAR WITH GUIDE FOR INSTRUCTORS:
IMPORT RESTRICTIONS
Topic:
☒Microeconomics
☐Macroeconomics
☐Statistics/Econometrics
Learning domains:
☒Knowledge
☒Application
☐Data analysis
☒Communication
☒Reflection
Core concepts:
Free trade; import restrictions; market
regulation; welfare analysis
Type(s) of task (can be more than one)
☒Constructed response given stimulus material
(clip/narrative/etc.)
☐Constructed response with no stimulus material
☐Quantitative analysis
☐Independent data sourcing
☒Independent research (not data sourcing) (Master’s level)
☒Written presentation
☒Oral presentation
☐Group collaboration
☐Use of nominated maths/stats software (specify):
☐Use of other technology (specify):
☐Other (specify):
________________________________________
This assessment task is an intermediate microeconomics task about free trade and is initially
designed for bachelor’s level 1 or 2. The book industry has been chosen as it is a relevant current
debate,however the task could be amended to other relevant industries. The emphasis is on the
theory of trade restrictions and the impact of restrictions on consumers, producers and net social
welfare.
1
Bachelors level task
Individual written and video assignment
Approx. 1500 words plus video
In March 2015, the final report of the Competition Policy Review Commissioned by the Australian
government was released. One of the recommendations of the review was with respect to restrictions
on parallel imports. The review recommended that “consistent with the recommendations of recent
Productivity Commission reviews, parallel import restrictions on books and second hand cars should
be removed, subject to transitional arrangements as recommended by the Productivity Commission.”
The issue of restrictions on the importation of books has historically been, and continues to be, a
contentious issue in Australia.
With this debate in mind, prepare a report on the book industry which considers the following:
a) The economic argument for the removal of parallel import restrictions. In presenting your
argument, ensure you include the likely impact on:
i)
i)
ii)
Australian publishers
Readers in Australia
The Australian community in general. [KB1, AB2, CB1]
b) A Melbourne publisher has been quoted as saying that “there is a compelling argument to
maintain import restrictions for the local book industry”. Assume you are the economics’
reporter for a television station. Provide a report for the evening current affairs show
highlighting the domestic publishers’ “compelling argument” regarding the debate about
restrictions on the importation of books. Your report should be in the form of a three minute
“YouTube” clip. Provide a transcript of your report. [AB2, CB1, RB1]
c) The competition policy review indicates that the restrictions should be removed “as long as the
costs and are not greater than the benefits”. Under what circumstances would the costs be
great than the benefits? Include a diagram that indicates changes in social welfare in your
analysis. [KB1, AB2]
2
Masters level task
Individual written and video assignment
Approx. 2000 words plus video
In March 2015, the final report of the Competition Policy Review Commissioned by the Australian
government was released. One of the recommendations of the review was with respect to
restrictions on parallel imports. The review recommended that “consistent with the
recommendations of recent Productivity Commission reviews, parallel import restrictions on books
and second hand cars should be removed, subject to transitional arrangements as recommended
by the Productivity Commission.” The issue of restrictions on the importation of books has
historically been, and continues to be, a contentious issue in Australia.
With this debate in mind, prepare a report on the book industry which considers the following:
a)
The economic argument for the removal of parallel import restrictions. In presenting your
argument, ensure you include the likely impact on:
i)
iii)
iv)
Australian publishers
Readers in Australia
The Australian community in general. [KM1, AM2, CM1]
b) A Melbourne publisher has been quoted as saying that “there is a compelling argument to
maintain import restrictions for the local book industry”. Assume you are the economics’
reporter for a television station. Provide a report for the evening current affairs show
highlighting the domestic publishers’ “compelling argument” regarding the debate about
restrictions on the importation of books. Your report should be in the form of a three minute
“YouTube” clip. Provide a transcript of your report. [AM2, CM1, RM1]
c) The competition policy review indicates that the restrictions should be removed “as long as
the costs and are not greater than the benefits”. Under what circumstances would the costs
be great than the benefits? Include a diagram that indicates changes in social welfare in
your analysis. [KM1, AM2]
In 1973 the Whitlam government in Australia announced a 25 percent across the board cut in
tariffs protecting domestic industry. From this move towards free trade, Australia has now moved to
being part of negotiations which continue in 2015 towards a proposed Trans Pacific Partnership
(TPP) regional free trade agreement which involves 12 countries.
d)
From the perspective of an economic historian, show how this movement towards the
removal of trade restrictions has influenced structural change in the Australian economy.
[AM3, RM2]
Advice to assessors:
This task could be amended to include hypothetical demand and supply functions and world prices so
that changes in surpluses could be quantified.
The task for master’s students in looking at the historical movement towards removing trade
restrictions has been included to encourage students to reflect on how economic thinking has
influenced policy. It will need to be reinforced to students to keep this task within the word limit and at
a general level.
3
Learning
domain
Learning outcomes
Bachelor Degree
Masters Degree
Knowledge
KB1 Bachelor graduates will be able to
identify, coherently explain and synthesise
core economic concepts
KM1 Masters graduates will be able to
identify, coherently explain and synthesise
core and advanced economic concepts,
including recent developments in the
discipline
Application
Bachelor graduates will be able to:
Masters graduates will be able to:
AB1• frame problems in terms of core
economic concepts and principles
AM1• frame and critically analyse problems in
terms of core and advanced economic
concepts and principles
AB2• apply economic reasoning and
analytical skills, in order to make informed
judgments and decisions
AM2• apply advanced economic reasoning
and analytical skills, including quantitative
techniques where appropriate, in order to
make informed judgments and decisions
AM3• plan and execute a research-based
project
Data analysis
Bachelor graduates will be:
Masters graduates will be able to:
DB1• able to use economic data to address
typical problems faced by economists
DM1• select and apply an appropriate
empirical method to address typical problems
faced by economists
DB2• aware of, and able to implement,
basic empirical techniques and interpret the
results
DM2• critically evaluate the results
Communication CB1 Bachelor graduates will be able to
present a clear and coherent exposition of
economic knowledge, ideas and empirical
evidence both orally and in writing,
individually or in collaborative contexts
CM1 Masters graduates will be able to
communicate complex ideas clearly and
coherently, in written form and interactive oral
form to expert and non-expert audiences,
individually or in collaborative contexts
Reflection
Bachelor graduates will be able to reflect
on:
Masters graduates will be able to reflect on
and evaluate:
RB1• the nature and implications of
assumptions and value judgments in
economic analysis and policy
RM1• the nature and implications of
assumptions and value judgments in
economic analysis and policy
RB2• interactions between economic
thinking and economic events, both
historical and contemporary
RM2• interactions between economic thinking
and economic events, both historical and
contemporary
RB3• the responsibilities of economists and
their role in society
RM3• the responsibilities of economists and
their role in society
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