Economics (ECO401) Assignment No. 1 SEMESTER SPRING 2012

[Nazeer Ahmad Khan]

Due Date: 12

th April, 2012 Marks: 20

The Case:

Pakistan is facing a persistent problem of illegal use of drugs such as heroine, cocaine and

crack. According to the annual report of United Nations Office on drug and crime, Pakistan’s

annual heroine market is worth $1.2 billion. More than 90% of the world’s opium which is

used for the production of alcohol and heroine is produced in neighboring country

Afghanistan and distributed to Pakistan, Iran and other countries. Pakistan is one of the main

suppliers of heroine to the whole world. According to government sources, 600,000 people

enter into drug abuse in Pakistan annually. Drug use has several adverse effects. One is that

drug addiction can destroy the lives of drug users and their families. Another is that drug

addicts often turn to robbery and other violent crimes to obtain the money needed to fulfill

their habit. Several steps have been taken by the Government of Pakistan to minimize the

use of drugs.

Requirement:

Part A:

Following steps have been taken by the government to minimize the use of drugs. Identify

the effect of each step on demand curve of drugs, supply curve of drugs, equilibrium price

and equilibrium quantity of drugs with the help of diagram.

a. Government imposes ban on some drugs from entering the country.

b. Government introduces awareness programs to educate the general public about the

harmful effects of drug usage.

c. Government hires new anti-narcotics officers to fight against the usage of drugs.

Part B:

Being an economist, elaborate the impact of supply side policies on prevailing drug related

crimes in Pakistan in short run and long run?

(Marks: A = 5+5+5, B = 5)

Instructions:

Please read the following instructions carefully before preparing the assignment solution:

For acquiring the relevant knowledge, do not rely only on handouts but watch the

course video lectures, which can be downloaded for free from

www.youtube.com/vu and

also use other reference books.

For planning your semester activities in an organized manner, you are advised to view

schedule of upcoming Assignments, Quizzes and GDBs in the overview tab of the

course website on VULMS.

Graphs are very important in Economics course. This assignment will enhance your skill

of drawing graphs. A complete procedure of

“How to draw graphs in MS-Word” is

uploaded on announcement page of LMS. Get help from that uploaded file to solve your

assignment.

Corrigendum related to lecture # 2, 3, 5, 6 and 7 have been uploaded on LMS in the

announcement section. Read these corrigenda attentively before solving assignment.

Draw diagrams by yourself. Do NOT copy from any source. NO need to write irrelevant

material.

Properly label the diagrams where required. Labeling also contains

marks.

Note:

Only in the case of Assignment,

24 hours extra / grace period after the due

date is usually available to overcome uploading difficulties which may be faced

by the students on last date. This extra time should only be used to meet the

emergencies and above mentioned due dates should always be treated as final

to avoid any inconvenience.

Important Instructions:

Please read the following instructions carefully before attempting the assignment solution.

Deadline:

·

Make sure that you upload the solution file before the due date. No assignment

will be accepted through e-mail once the solution has been uploaded by the

instructor.

Formatting guidelines:

·

Use the font style “Times New Roman”/ “Arial” and font size “12”.

·

It is advised to compose your document in MS-Word 2003.

·

Use black and blue font colors only.

Solution guidelines:

·

Every student will work individually and has to write in the form of an analytical

assignment.

·

Give the answer according to question.

·

For acquiring the relevant knowledge don’t rely only on handouts but watch the

video lectures and use other reference books also.

Rules for Marking

Please note that your assignment will not be graded or graded as Zero (0) if:

·

It has been submitted after due date

·

The file you uploaded does not open or is corrupt

·

It is in any format other than .doc (MS. Word)

·

It is cheated or copied from other students, internet, books, journals etc…

[+ M.Tariq Malik]

ECO401 Assignment No 1 Spring 2012 Solution

Solution

The Case:

Pakistan is facing a persistent problem of illegal use of drugs such as heroine, cocaine and crack. According to the annual report of United Nations Office on drug and crime, Pakistan’s annual heroine market is worth $1.2 billion. More than 90% of the world’s opium which is used for the production of alcohol and heroine is produced in neighboring country Afghanistan and distributed to Pakistan, Iran and other countries. Pakistan is one of the main suppliers of heroine to the whole world. According to government sources, 600,000 people enter into drug abuse in Pakistan annually. Drug use has several adverse effects. One is that drug addiction can destroy the lives of drug users and their families. Another is that drug addicts often turn to robbery and other violent crimes to obtain the money needed to fulfill their habit. Several steps have been taken by the Government of Pakistan to minimize the use of drugs.

Requirement:

Part A:

Following steps have been taken by the government to minimize the use of drugs. Identify the effect of each step on demand curve of drugs, supply curve of drugs, equilibrium price and equilibrium quantity of drugs with the help of diagram.

a. Government imposes ban on some drugs from entering the country.
b. Government introduces awareness programs to educate the general public about the harmful effects of drug usage.
c. Government hires new anti-narcotics officers to fight against the usage of drugs.

Part B:
Being an economist, elaborate the impact of supply side policies on prevailing drug related crimes in Pakistan in short run and long run? (Marks: A = 5+5+5, B = 5)

Instructions:

Please read the following instructions carefully before preparing the assignment solution:
For acquiring the relevant knowledge, do not rely only on handouts but watch the course video lectures, which can be downloaded for free from vu – YouTube and also use other reference books.

For planning your semester activities in an organized manner, you are advised to view schedule of upcoming Assignments, Quizzes and GDBs in the overview tab of the course website on VULMS.

Graphs are very important in Economics course. This assignment will enhance your skill of drawing graphs. A complete procedure of “How to draw graphs in MS-Word” is uploaded on announcement page of LMS. Get help from that uploaded file to solve your assignment.

Corrigendum related to lecture # 2, 3, 5, 6 and 7 have been uploaded on LMS in the announcement section. Read these corrigenda attentively before solving assignment.

Draw diagrams by yourself. Do NOT copy from any source. NO need to write irrelevant material.

Properly label the diagrams where required. Labeling also contains marks.

Note:
Only in the case of Assignment, 24 hours extra / grace period after the due date is usually available to overcome uploading difficulties which may be faced by the students on last date. This extra time should only be used to meet the emergencies and above mentioned due dates should always be treated as final to avoid any inconvenience.

Important Instructions:
Please read the following instructions carefully before attempting the assignment solution.

Deadline:

Make sure that you upload the solution file before the due date. No assignment will be accepted through e-mail once the solution has been uploaded by the instructor.

Formatting guidelines:

Use the font style “Times New Roman”/ “Arial” and font size “12”.
It is advised to compose your document in MS-Word 2003.
Use black and blue font colors only.

Solution guidelines:

Every student will work individually and has to write in the form of an analytical assignment.
Give the answer according to question.
For acquiring the relevant knowledge don’t rely only on handouts but watch the video lectures and use other reference books also.

Rules for Marking
Please note that your assignment will not be graded or graded as Zero (0) if:
It has been submitted after due date
The file you uploaded does not open or is corrupt
It is in any format other than .doc (MS. Word)
It is cheated or copied from other students, internet, books, journals etc…

Solution

[+ M.Tariq Malik]

ECO401 Assignment Solution

[sidra qasmi]

Tariq bhaiii lasttt part mainnn supply or demand kesey increase hogiii........mjhey ye ni samjh main ayaaa....................anti-narcotics jb drugs k liye fight krain gey too demand decrease ni hogiii???????????

orr supply......wo b to decrease hi ho gi.........

m confused plx Tariq bhaiiiii.......

[m zafar]

yar kun sabar dekh rehe ho hamra kar do solution upload aik to v.u walon ne rula rkha ha doja apne plz yar samjho hmer dil dimag aur jazbat ko b kar do soluiton upload allah bahle kareeeeeeeeee

yr b batao ye dia garam to laga den ge hum kia kucj likhna ha ye gav k pange ka ye b batao yar

[sidra qasmi]

PART B.....uskaa koi ideaaa..........

mjhey long run short run ni aya samjh main.......

[Rabia Mohsin]

long run means lambei arsy k liye and short run means kam waqt k liye kia asrat hongei drug related crimes par.

[╰☆Dr.Economist☆╮]

Pls change and send it

 

Hope u will get maximum marks.

[╰☆Dr.Economist☆╮]

Main na apna idea main part A  and Part B ko discuss kia hy aur points bi diaya hian...

 

Ap log un points ko base bana ka us ki detail likh dana.

 

Thanks kahna ki zarort nahi

 

Its my duty

 

Waqar Ali

MBA-Finance

[sidra qasmi]

han ye to smjh main aya hey ....mera matlab hey k ye short n long run k liyeee koi graph shraph b hey k niii......

[m zafar]

yar no thnx but great job well done mere bahi

[Dilshan Khan]

part b k lye koi grpah nai hay ... just apna idea btana hy .......... 

[Adi Gill]

haan part b mein koi graph nahi hai.

words mein explain karna hai ic question ko.