Economics Marathon - 2010 (1 Viewer)

[elliottjohnson]

Currently with the Business S. marathon this year working as revision for me I wanted to start up the 2010 Economics revision marathon.

You know what to do. Answer the Q. and ask a new one. Remember all who participate will benefit, so contribute!!!

i'll start..

Define Gross World Product.

 

[NEGROizzle]

what the fk is gross world profit? isn't it Gross World Product (GWP)?

 

[Lolsmith]

lol. +1

First article from google when searching 'Gross World Profit':
http://www.joystiq.com/2007/11/15/world-of-warcraft-hits-9-3-million-subscribers/

 

[NEGROizzle]

lol. +1

First article from google when searching 'Gross World Profit':
http://www.joystiq.com/2007/11/15/world-of-warcraft-hits-9-3-million-subscribers/

+1 LOOOOOL

Ok define Gross World Product will be first question then GOGOOGOGO.

 

[carolL]

GWP is measured by adding together the outputs of the world economies.
reasons for protection?

 

[NEGROizzle]

There are several reasons for protection, however economists argue that Prevention of dumping is the most valid as it has the potential to wipe out domestic firms in the market. Helping infant industries start up is often the 2nd most arguable reason for protection however must be temporary otherwise the firms start becoming dependent on protection and won't be self sufficient in the long run. Other reasons for protection include, self depedency, ensuring domestic employment and policitical popularity.

QUESTION: What is the reason for Australia's change in direction of trade?

 

[elliottjohnson]

wow, not thinking. ha.

 

[showy]

Australia's direction of trade has changed primarily from the Europe and the UK as a result of protectionist efforts in the US and Europe including the formation of the European Union and the North America Free Trade Agreement, which are closed trading blocs creating barriers to trade.
The rapid industrialisation of Asia has provided Australia with new trade opportunities, esp. with an increasing demand for Aus' export commodities. Aus has formed free trade agreements with this region such as APEC forums and agreements with ASEAN.

Question: Distinguish between the current account and the capital and financial account in the balance of payments.

 

[party]

wooow you peolpe know alot about economics. i as well do econnomic but sadly i cant sound as smart as you all

 

[elliottjohnson]

Australia's new direction of trade is due to the United Kingdom joining the EU and thus joining the European Economic Community (EEC) trading bloc. prior to this the UK was Aust.s major trading partner but now exporters found it hard to penetrate. A shift was developed to now trade with ASEAN countries particularly in regards to commodities.

Outline the role of the World Bank.

 

[1titanic]

Australia's new direction of trade is due to the United Kingdom joining the EU and thus joining the European Economic Community (EEC) trading bloc. prior to this the UK was Aust.s major trading partner but now exporters found it hard to penetrate. A shift was developed to now trade with ASEAN countries particularly in regards to commodities.

Outline the role of the World Bank.

It is a global organisation and its main role is to assist poorer nations with their economic development

Question : If the $AUD depreciates, what happens to the Current Account Deficit?

 

[ninetypercent]

If AUD depreciates, Aus dollars worth less. It will be harder to repay loans as they become more expensive for Aus. CAD can increase
On the other hand, if AUD depreciates, Aus dollars worth less and imports become more expensive. If Aus imports less, a short term improvement in CAD can result.

Question: What are the economic effects of a tariff?

 

[NEGROizzle]

With a depreciation of the AUD, there are several different impacts onto our CAD.

Firstly a depreciation of the AUD means that for the Australian Individual the cost of overseas currency is more due to the decreased value of AUD, hence this means Imports will be more expensive. With imports becoming more expensive it would decrease the demand for imports and individuals may look for domestic subsititudes, hence improving our BOGS due to less outflows (debits).

Secondly Australia has alot of foreign liabilities, these liabilities must be serviced as do with all other forms of liabilities. Since we must convert our currency to foreign currency to service these debts and a depreciated buys less foreign currency then it will COST MORE to pay off these servicing costs. Also known as the VALUATION EFFECT, Hence deteroriates our Net Income in our current account.

QUESTION: Define the relationship between Economic Growth & Unemployment.

 

[Lolsmith]

Question: What are the economic effects of a tariff?

The economic effects of a tariff vary. They can include a decrease in both imports and exports, as some nations can resort to a retaliatory policy of tariff increases towards other tariff increases by other economies. The reason imports decrease is that they are more expensive to be shipped into the nation, due to higher taxation being passed onto the consumer. Exports can become more expensive, as foreign economies, after increasing their tariffs, will force domestic firms to increase their price to maintain profitable production.
Tariffs can also be used to protect domestic industry, create or facilitate trade embargoes or, when reduced, ease the flow of globalisation and global trade.

Question: List 4 different types of protectionist policies employable by an economy.

 

[1titanic]

The economic effects of a tariff vary. They can include a decrease in both imports and exports, as some nations can resort to a retaliatory policy of tariff increases towards other tariff increases by other economies. The reason imports decrease is that they are more expensive to be shipped into the nation, due to higher taxation being passed onto the consumer. Exports can become more expensive, as foreign economies, after increasing their tariffs, will force domestic firms to increase their price to maintain profitable production.
Tariffs can also be used to protect domestic industry, create or facilitate trade embargoes or, when reduced, ease the flow of globalisation and global trade.

Question: List 4 different types of protectionist policies employable by an economy.

Hmm.. I'm not sure but is it
- tariffs
- quotas
-local content rules
-subsidiaries?

 

[Lolsmith]

Very nice.

Post a question.

 

[1titanic]

Very nice.

Post a question.

By the way am I right?
What are some ways that the RBA can influence the value of the $AUD?

 

[NEGROizzle]

DIRTYING the float ; ) Buying aud in aim to increase demand for AUD and vice versa.

 

[1titanic]

DIRTYING the float ; ) Buying aud in aim to increase demand for AUD and vice versa.

Thank god its right, i wrote that in my essay and it can also the revaluation and devaluation effect?

You haven't post a question

 

[Lolsmith]

The Central Bank in Australia can influence the value of the $AUD in a few ways. They can put in a fixed exchange rate system, a flexible pegged system (which it did) or just adjust the $AUD manually by either buying or selling $AUD. It can also use interest rates to improve foreign investment in Australia, although it rarely does because it can affect the domestic economy too greatly.

What consists under the balance of payments? (The major/general components)

P.S: Yes, you were right.

EDIT: Late response ftl.