Economics

Internal Assessment – Task 1 and 2

Task 1 (individual task)

The Orewa College Board of Trustees has decided to allow the Commerce Department to spend $12,000 to improve its services to students. They have said that the $12,000 can be taken from either the operations budget or the IT budget.
The operations budget allows the department to improve its physical facilities and the IT budget allows the department to improve its IT resources. The Commerce Department’s final decision must be approved and signed off by the Board of Trustees.

The Commerce Department is thinking about how to spend the money. Three ideas have been put forward, but they and the Board are open to other ideas.
The ideas provided so far are:
20 mini laptops in a portable trolley
20 Ipads in a portable trolley
Refurbishment of classroom H11 and H12 with new furniture to allow students to work more freely eg bean bags, new desks (same as H2), new blinds and a sound system in each room.

(A) Define Scarcity

The economic problem where people have limited means but unlimited wants.

(B) Describe the economic decision the Commerce Department must make:
How to use the limited mean of income to choose between unlimited wants. Because they have limited means but unlimited wants they cannot have everything so have to make a choice because of scarcity which results with an opportunity cost

(C) Identify the MAIN scarce resource/limited means in this situation:
Income, the business department only have $12,000 to spend so have restricted ideas.

(D) Explain in detail how this economic decision is affected by limited means and/or scarce resources:

The department has the limited mean of income and cannot buy everything so must make a choice between all their wants. This choice is an example of the economic problem of scarcity, not enough resources to get all the unlimited wants that people have. Because of this choice the department must rank the options. If they were to rank the option of refurbishment 1st, 20 mini laptops 2nd and 20 iPads 3rd. The option the would choose is the refurbishment of H11 and H12. The 20 laptop option would be the opportunity cost. The opportunity cost is the next best alternative forgone when making a decision.

Task 2 (group task):

Question 2:
(A) Identify three groups of people affected by this decision that may have differing view points.
Group 1: Students
Group 2: Teachers
Group 3: IT staff
Group 4: Senior Managment

(B) Identify at least three methods you can use to collect information on the view points of the three groups above and design the appropriate collection tools.
Method 1: survey students
Method 2:student focus group
Method 3:teacher survey
Method 4:it department questionare
Method 5: interview with senior Managment

(C) Collect and process the data and attach this as an appendix to your assessment paperwork.
Your teacher will also need to sign below to confirm that you actively participated in the collection of the data.
Teachers Signature: _____________________________ Date: ________

Task 3 (individual task):
Question 3:
(A) Based on the data your group collected, what are the options and compromise options that the groups suggest the Commerce Department should consider.

You must identify the three options already provided and a minimum of one realistic additional compromise option, as identified during the data collection.

Option 1: 20 iPads in a portable trolley
Option 2: 20 mini Laptops in a portable trolley
Option 3: Refurbishment of H11 and H12
Option 4: 20 Windows tablets in a portable trolley

(B) Identify the costs and benefits of each of the options suggested above. Use the cost benefit analysis template provided to record these.

(C) Next to each of the costs and benefits rank the cost or benefit following the guidelines on the cost benefit analysis template. Calculate the total weighted score for each option and record it on the cost benefit analysis template.

(D) Based on the results of the cost benefit analysis which is the option you would recommend the Commerce Department choose and the Board approve.

I recommend that the Commerce Department/Board choose option 3, option of refurbishing H11 and H12.

(E) Fully explain and justify why you think they should choose this option.
In your answer you should:
Explain why that option is the one you recommend.
Justify your choice by referring to the costs and benefits of the chosen option and justify why you weighted each cost and benefit in the way you did.
Identify the opportunity cost of your decision.
Compare the costs and benefits of the chosen option with the costs and benefits of the next best option, refer to their relative weightings.

The option of refurbishing H11 and H12 is the one I have chosen as compared to the other options it is the most beneficial for students and their learning. This is because it offers something different from the other options, which is the improved learning environment that comfortable seating and relaxed students creates. Refurbishments means that improved safety features could be installed so that the classroom is safer for the students. This option is more beneficial and this is shown in the cost benefit analysis where it ranked first out of four with the option of 20 windows tablets being the second best alternative. This means the opportunity cost is the 20 windows tablets as that option is the next best alternative forgone when making a decision.

The majority of Teachers, students, and Mrs Nelson from Senior Management think that devices are unecessary. This is shown on the cost benefit analysis with both IPads and Laptops getting -5/-5 for the reason that students already have devices. This means It would be unnecessary for the business department to buy 20 iPads or 20 mini laptops when every student with some exceptions in yrs 12 and 13 already have a device. These expensive newly bought devices would not be used as often as they should and therefore gather dust. Although getting 20 windows tablets is the same as getting more devices and therefore just as unnecessary as iPads or laptops they are more suitable for business as they offer flash player and graph making programs such as excel, this means they are not as restricted as iPads but not hard for the IT department to work with. This shows that windows tablets combine the benefits from both the iPad and laptops options. Because the iPad, laptop and tablet options are all device related is most likely why the refurbishment option is ranked as the best option _________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
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