Economics game (1 Viewer)

[Tronester]

Good enough for me lol. You just need to mention how globalisation has broken down national boundaries and lead to increased integration of all economies into the global economy. This in turn has lead to an increase in trade and financial flows (among other things) across the entire global economy. Then throw in some stats I couldn't be bothered to find. Anyone else have a better way to answer this?

My question:
Explain the policy options for improving external stability

 

[jkdsfsio3458963]

Good enough for me lol. You just need to mention how globalisation has broken down national boundaries and lead to increased integration of all economies into the global economy. This in turn has lead to an increase in trade and financial flows (among other things) across the entire global economy. Then throw in some stats I couldn't be bothered to find. Anyone else have a better way to answer this?

My question:
Explain the policy options for improving external stability

Aust needs to diversify its production of exports through

-increased production of ETM exports (technologically advanced goods) as opposed to commodity goods (STM's) which fluctuate in price heavily

-increased exportation of services eg. education, tourism, that dominate the domestic economy, but aren't exported much

 

[jkdsfsio3458963]

my question: Outline the role of automatic stabilizers in the budget

 

[ADF1992]

Explain the policy options for improving external stability

well you can use monetary policy through contractionary stance, which is to increase the interest rate to slow down economic activity, causing demand for
imports to reduce while exports dont necessarily reduce, improving our terms of trade, hnce improving external stability.

theres prolly more but i could only be bothered remembering that right now=\


outline the role of automatic stabilisers in the budget:

Automatic stabilisers are non-discretionary budgetary movements which occur
as economic activity varies, stabilising the economy and adjusting the budget even against government will. There are two main ones, being unemployment benefits, which will decrease as the economy grows as people gain jobs, and as they gain jobs the progressive income tax system is the other stabiliser, providing revenue for government in good economic times. i hope that makes sense?

QUESTION : distinguish between a decentralised and a centralised wage determination system.

 

[ONoezzz]

my question: Outline the role of automatic stabilizers in the budget

Automatic stabilisers are changes in the budget influenced by economic growth and not a change in government policy. There are two types of automatic stabilisers - unemployment benefits, which increases in a recession and decreases in a boom; and the progressive income tax system - in a recession, less taxation revenue is received due to high unemployment. In a boom, workers are shifted to higher tax brackets and hence taxation revenue increases. Automatic stabilisers are not a complete solution to counteracting the effects of the economic cycle - discretionary policies must still be used.

Describe some of the limitations on policy implementation.

 

[Tronester]

Sorry your question doesn't really make sense, just the way you worded it. I think your suggesting limitations of economic policy? This would be time lags and political restraints. Could you please clarify.

 

[ONoezzz]

QUESTION : distinguish between a decentralised and a centralised wage determination system.

In a centralised wage system, the government and the Australian Council of Trade Unions agree on minimum wages and specified working conditions under Federal Awards. e.g. Prices and Incomes Accords during 1983 - 1995. In contrast, the work conditions are negotiated between employers and employees in a decentralised wage system. The influence of government tribunals and unions are diminished in a decentralised wage system e.g. Workplace Relations Act 1996.

Describe some of the limitations on policy implementation.

 

[ONoezzz]

Sorry your question doesn't really make sense, just the way you worded it. I think your suggesting limitations of economic policy? This would be time lags and political restraints. Could you please clarify.

Lol yes you're right before I intended to type in "Describe some of the limitations on policy implementation." Sorry I was in a rush :S Thanks for pointing that out

So yeah, the question really was:
Describe some of the limitations on policy implementation. e.g. time lags, political constraints, global influences

 

[FFC]

outline the role of automatic stabilisers in the budget:

Automatic stabilisers are non-discretionary budgetary movements which occur
as economic activity varies, stabilising the economy and adjusting the budget even against government will. There are two main ones, being unemployment benefits, which will decrease as the economy grows as people gain jobs, and as they gain jobs the progressive income tax system is the other stabiliser, providing revenue for government in good economic times. i hope that makes sense?

Automatic stabilisers are changes in the budget influenced by economic growth and not a change in government policy. There are two types of automatic stabilisers - unemployment benefits, which increases in a recession and decreases in a boom; and the progressive income tax system - in a recession, less taxation revenue is received due to high unemployment. In a boom, workers are shifted to higher tax brackets and hence taxation revenue increases. Automatic stabilisers are not a complete solution to counteracting the effects of the economic cycle - discretionary policies must still be used.

Don't forget that in a downswing, there is also reduced spending on imported goods and services (as imports are typically a function of income), another automatic stabiliser.
There is also the matter of the level of savings, which are theoretically also a function of income, and so in a downswing would be expected to fall - reducing leakages from the circular flow. However, this is often counteracted by consumer expectations, which fall in a downswing, often causing the MPS and level of saving to rise - thus working cyclically (as opposed to the other Automatic Stabilisers which act counter-cyclically).

 

[katerebecca]

As the questions seem to have stopped....

Identify two qroups that experience inequality in employment.

 

[Nikkay75]

What is the J-Curve?

 

[jkdsfsio3458963]

Structural change achieved through Micro economic reform- short term pain/ long term gain eg. job losses through job restructuring, but greater job opportunities in the future in more efficient industries

How does the RBA intervene in the Exchange rate

 

[debbiee]

How does the RBA intervene in the Exchange rate

It can step into FOREX as a buyer or seller. If it wanted to prevent a rapid depreciation, it would buy $A, thus reducing supply and adding upward pressure to the dollar. Conversely, it could also sell $A to prevent a rapid appreciation.

Indirectly, it could use DMO to influence the value of the $A. By raising the cash rate which would spill over to general interest rates, it can increase demand for the $A, which could lead to an appreciation and vice versa.

 

[Zak Ambrose]

Outline TWO reasons that could explain inequality of income within a nation.

 

[f1r3c4p3]

Outline TWO reasons that could explain inequality of income within a nation.

1. Age - Income tends to be higher for people in the prime of their working lives. Younger people earn less per week than other people due to less skills than older people, income levels are usually low at the start of working life.

2. Gender - Female earn a much lower income than male due to discrimination from employer, they have less opportunity to gain skills and education and woman are more likely to work part time due to "baby sitting" at home.



Question: Outline three impacts on the Australian economy of a contractionary monetary policy stance.

 

[Zak Ambrose]

Question: Outline three impacts on the Australian economy of a contractionary monetary policy stance.

1. increasing constraint on economic growth
2. increased incentive to save rather than consume
3. increased unemployment as business' offset increased cost of borrowing.


explain how an increase in productivity contributes to economic growth.

 

[f1r3c4p3]

explain how an increase in productivity contributes to economic growth.

Economic growth refers to an increase in a nation's total productive capacity which is measured by changes in it's REAL GDP over time. An increase in productivity would mean an increase in the total value of total domestic output (GDP) and therefore an increase in economic growth.

Depends how many marks this question is. It can be answered very briefly or u can go into much more depth if u wanted to.



Question: Explain one current economic policies used to reduce the level of unemployment in Australia today.

 

[Zak Ambrose]

Economic growth refers to an increase in a nation's total productive capacity which is measured by changes in it's REAL GDP over time. An increase in productivity would mean an increase in the total value of total domestic output (GDP) and therefore an increase in economic growth.

Depends how many marks this question is. It can be answered very briefly or u can go into much more depth if u wanted to.



Question: Explain one current economic policies used to reduce the level of unemployment in Australia today.

2 mark question. that would be enough for 2 marks.

fiscal policy > expansionary stance > increase AD > increases demand for labour > reduces unemployment


Define Okun's Law

 

[f1r3c4p3]

2 mark question. that would be enough for 2 marks.

fiscal policy > expansionary stance > increase AD > increases demand for labour > reduces unemployment


Define Okun's Law

An important relationship between unemployment and economic growth can be determined by using the Okun's Law which was created by Arthur Okun (I think his name was Arthur??). The law states that econ growth must be higher than growth in workforce and the total of productivity. When these two are achieved then unemployment should fall.

Question: What can the government implement to reduce pollution?

 

[jordz007]

An important relationship between unemployment and economic growth can be determined by using the Okun's Law which was created by Arthur Okun (I think his name was Arthur??). The law states that econ growth must be higher than growth in workforce and the total of productivity. When these two are achieved then unemployment should fall.

Question: What can the government implement to reduce pollution?

The government is able to use taxation such as carbon taxes on firms. They are also able to use discretionary fiscal expenditure to put in place new technologies that allow for decreased pollution. They may also implement MER which allow firms to structurally adjust production methods to become more environmentaly friendly and therefore produce lower levels of pollution.

Question: Outline both debt and equity