Economics Marathon (1 Viewer)
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onebytwo
Recession '08
Re: Economics Marathon - The 2006 Version
i guess it does in a way..but its more of a prelim question.
the demand (from what i remember) is affected changes in real incomes - changes in demand for complementary and substitute goods ....
cant remember
changes in supply are affected by excess capacity...I DONT KNOW!
someone help out
i guess it does in a way..but its more of a prelim question.
the demand (from what i remember) is affected changes in real incomes - changes in demand for complementary and substitute goods ....
cant remember
changes in supply are affected by excess capacity...I DONT KNOW!
someone help out
lilkiwicutie89
Member
Re: Economics Marathon - The 2006 Version
heyy... oppss .. sorry .. its to do with AUD... thanks alieenli =P yeahh .. sorry...
Outlines the factors of demand and supply in AUD ?
heyy... oppss .. sorry .. its to do with AUD... thanks alieenli =P yeahh .. sorry...
Outlines the factors of demand and supply in AUD ?
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Re: Economics Marathon - The 2006 Version
O.k
Demand Influenced by:
-overseas investor confidence
-demand for exports
-demand by foreign tourists/send money (current transfers in)
-RBA's desire to appreciate $A
Supply Influenced by:
-Australian business confidence (capital outflow)
-import demand
-current transfer outflow
-RBA's desire to depreciate $A
Question How has globalisation increased economic growth and trade flows?
O.k
Demand Influenced by:
-overseas investor confidence
-demand for exports
-demand by foreign tourists/send money (current transfers in)
-RBA's desire to appreciate $A
Supply Influenced by:
-Australian business confidence (capital outflow)
-import demand
-current transfer outflow
-RBA's desire to depreciate $A
Question How has globalisation increased economic growth and trade flows?
joeyjojoshabado
hmmm
Re: Economics Marathon - The 2006 Version
hmmm here goes..
Question How has globalisation increased economic growth and trade flows?
Globalisation has increased trade flows due to a reduction in trade barriers through bilateral and regional trade agreements + WTO etc and the emergence of a global market place
Economic growth has increased through financial deregulation in countries leading to foreign direct investment. Although this may expose countries to finiancial crises (eg. Asian financial crisis) it can also contribute to rapid growth of financial markets. hmm.. new technology and the movement of labour (immigration, temporary/guest workers) leading to greater productivity?
Yeah..
OK MOVING ON..
question: what is the difference between economic growth and economic development?
hmmm here goes..
Question How has globalisation increased economic growth and trade flows?
Globalisation has increased trade flows due to a reduction in trade barriers through bilateral and regional trade agreements + WTO etc and the emergence of a global market place
Economic growth has increased through financial deregulation in countries leading to foreign direct investment. Although this may expose countries to finiancial crises (eg. Asian financial crisis) it can also contribute to rapid growth of financial markets. hmm.. new technology and the movement of labour (immigration, temporary/guest workers) leading to greater productivity?
Yeah..
OK MOVING ON..
question: what is the difference between economic growth and economic development?
Mr. Sabuncuoglu
Foo Fighter
Re: Economics Marathon - The 2006 Version
question: what is the difference between economic growth and economic development?[/QUOTE]
Economic Growth is the result of a sustained increase in an economy's productive capacity over time. Measured by real GDP. As for Economic Development it is the broad measure of welfare in a nation and involves improving the quality of human life through increasing per capita income, reducing poverty, and enhancing individual economic opportunities.
my question: what and how can the RBA intervene in the AUSTRALIAN ECONOMY.
question: what is the difference between economic growth and economic development?[/QUOTE]
Economic Growth is the result of a sustained increase in an economy's productive capacity over time. Measured by real GDP. As for Economic Development it is the broad measure of welfare in a nation and involves improving the quality of human life through increasing per capita income, reducing poverty, and enhancing individual economic opportunities.
my question: what and how can the RBA intervene in the AUSTRALIAN ECONOMY.
aileenli
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Re: Economics Marathon - The 2006 Version
ooooh finally a question i can half answer! every time i come on, there seems to be a super hard question....
lets see....RBA can intervene in the Australian Economy through the monetary policy, where they can implement either an expansionary or contractionary policy through the lowering/incresing of interest rates, through the buying/selling of Commonwealth Government Securities (CGS). if the RBA sells CGS to financial institutions, it decreases the money supply, thus increasing the cash rate. Alternatively, it can buy CGS from financial institutions, increasing the money supply and lowering the cash rate.
Theres a bit about exchange rate too.....let me think *rustles through textbook*...
Higher interest rates relative to overseas will increase the capital inflow, increasing the demand for AUD thus appreciating the AUD as demand exceeds supply. this will lower the cost of imports, but increase the cost of exports, thus having a contractionary effect on the economy. on the other hand, a lower interest rate relative to overseas will lead to a capital outflow, depreciating the AUD, and increasing costs of imports, but decreasing cost of exports.
thats the best i could think of, but knowing me, my economics isnt very good so can someone check over it? i feel like i left some stuff out....
anyways, my question: what is the national competition policy?
ooooh finally a question i can half answer! every time i come on, there seems to be a super hard question....
lets see....RBA can intervene in the Australian Economy through the monetary policy, where they can implement either an expansionary or contractionary policy through the lowering/incresing of interest rates, through the buying/selling of Commonwealth Government Securities (CGS). if the RBA sells CGS to financial institutions, it decreases the money supply, thus increasing the cash rate. Alternatively, it can buy CGS from financial institutions, increasing the money supply and lowering the cash rate.
Theres a bit about exchange rate too.....let me think *rustles through textbook*...
Higher interest rates relative to overseas will increase the capital inflow, increasing the demand for AUD thus appreciating the AUD as demand exceeds supply. this will lower the cost of imports, but increase the cost of exports, thus having a contractionary effect on the economy. on the other hand, a lower interest rate relative to overseas will lead to a capital outflow, depreciating the AUD, and increasing costs of imports, but decreasing cost of exports.
thats the best i could think of, but knowing me, my economics isnt very good so can someone check over it? i feel like i left some stuff out....
anyways, my question: what is the national competition policy?
Re: Economics Marathon - The 2006 Version
National Competiton Policy..
-introduced in 1995 as part of microeconomic reform in response to th eHilmer Report.
Elements include:
-competitive neutrality principle
-Reforming regulation which restricts competition eg.telecommunications
-breaking up monopolies
-limiting anti-competitive behaviour eg. price-fixing
-reforming public sector monopolies eg electricity.
This is enforced by ACCC.
question-how and why have pte's been reformed?
National Competiton Policy..
-introduced in 1995 as part of microeconomic reform in response to th eHilmer Report.
Elements include:
-competitive neutrality principle
-Reforming regulation which restricts competition eg.telecommunications
-breaking up monopolies
-limiting anti-competitive behaviour eg. price-fixing
-reforming public sector monopolies eg electricity.
This is enforced by ACCC.
question-how and why have pte's been reformed?
joeyjojoshabado
hmmm
Re: Economics Marathon - The 2006 Version
how and why have pte's been reformed?
Reform of public trading enterprises has taken place as a form of deregulation to remove government restrictions through privatisation. Its believed that greater economic efficiency occurs when enterprises are privately owned as they are subject to competitive markets.
Main reforms include
- privatisation of telstra, the commonwealth bank, qantas..
- commercialisation of Energy Australia to provide incentives to improve efficiency and pay dividends to the government
- subjecting pte's to taxes, interest on loans so they can operate in a competitive private sector environment
- corporatisation of pte's such as Australia Post to have efficient management structures similar to private enterprises
question: What are some potential efficiency gains from microeconomic policies?
how and why have pte's been reformed?
Reform of public trading enterprises has taken place as a form of deregulation to remove government restrictions through privatisation. Its believed that greater economic efficiency occurs when enterprises are privately owned as they are subject to competitive markets.
Main reforms include
- privatisation of telstra, the commonwealth bank, qantas..
- commercialisation of Energy Australia to provide incentives to improve efficiency and pay dividends to the government
- subjecting pte's to taxes, interest on loans so they can operate in a competitive private sector environment
- corporatisation of pte's such as Australia Post to have efficient management structures similar to private enterprises
question: What are some potential efficiency gains from microeconomic policies?
joeyjojoshabado
hmmm
Re: Economics Marathon - The 2006 Version
privatisation- transferring from public to private ownership
commercialisation- make commercial and have profit as the main aim
corporatisation- Changing the structure of a government or semi-government body so that it operates on business lines and an obligation to account to the government for its financial performance. Often the first step towards privatisation
..thats what mr economics dictionary says lol..sorry..im more of a 'wrote learner' with these sorta things...memorise useless facts then regurgitate them in exams..not good.
privatisation- transferring from public to private ownership
commercialisation- make commercial and have profit as the main aim
corporatisation- Changing the structure of a government or semi-government body so that it operates on business lines and an obligation to account to the government for its financial performance. Often the first step towards privatisation
..thats what mr economics dictionary says lol..sorry..im more of a 'wrote learner' with these sorta things...memorise useless facts then regurgitate them in exams..not good.
aileenli
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Re: Economics Marathon - The 2006 Version
yay ESD!! kinda sounds like a drug....
anyway, ESD is the development that meets the current needs, as well as ensuring resources for future generations.
question: what are the policies used to reduce inequality in the income and wealth distribution?
yay ESD!! kinda sounds like a drug....
anyway, ESD is the development that meets the current needs, as well as ensuring resources for future generations.
question: what are the policies used to reduce inequality in the income and wealth distribution?
Re: Economics Marathon - The 2006 Version
LSD is the drug, bot ESD.
Policies:
-Automatic stabilisers through the usage of a progressive tax system whereby the higher income earners pay a higher MRT whilst the lowest income earners pay no tax. Also, through welfare system, the government supplies those who are unable to earn an income, with income.
-Public services are provided. eg public schools, aimed at the lower-income households
question: name and explain the 3 ways the government can finance a budget deficit.
LSD is the drug, bot ESD.
Policies:
-Automatic stabilisers through the usage of a progressive tax system whereby the higher income earners pay a higher MRT whilst the lowest income earners pay no tax. Also, through welfare system, the government supplies those who are unable to earn an income, with income.
-Public services are provided. eg public schools, aimed at the lower-income households
question: name and explain the 3 ways the government can finance a budget deficit.
joeyjojoshabado
hmmm
Re: Economics Marathon - The 2006 Version
question: name and explain the 3 ways the government can finance a budget deficit.
- by borrowing from the private sector through bond sales
- borrowing from the RBA
- borrowing in overseas financial markets
next question: what are some effects of an appreciation or depreciation of the $AUD
question: name and explain the 3 ways the government can finance a budget deficit.
- by borrowing from the private sector through bond sales
- borrowing from the RBA
- borrowing in overseas financial markets
next question: what are some effects of an appreciation or depreciation of the $AUD
lilkiwicutie89
Member
Re: Economics Marathon - The 2006 Version
apprent - imports cheap
- exports expensive
- loss of competivienss
- cad good.. as isnt it 70% of foriegn lib. are borrowed for overseas?
- consumers have more purchaing power..
depreciation
- imports expensive
- exports cheap
- increase intetrnational competivienss
- CAD worsen as we owe more money
- loss of purchasing power
there should be more.. but thats whats on the top of my head..
next question
Outline the realationship between exchange rate movement and inflation?
(seems really hard btw)
joeyjojoshabado said:
apprent - imports cheap
- exports expensive
- loss of competivienss
- cad good.. as isnt it 70% of foriegn lib. are borrowed for overseas?
- consumers have more purchaing power..
depreciation
- imports expensive
- exports cheap
- increase intetrnational competivienss
- CAD worsen as we owe more money
- loss of purchasing power
there should be more.. but thats whats on the top of my head..
next question
Outline the realationship between exchange rate movement and inflation?
(seems really hard btw)
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Re: Economics Marathon - The 2006 Version
Outline the relationship between exchange rate movement and inflation.
ouch.. tough question... well sort of
To analyse the impact inflation has on the exchange rate of an economy, one must also consider the inflation rate of other nations, particularly those that make up the TWI. If a nation's inflation is lower than the average, than their exchange rate can be expected to appreciate as a result of increased purchasing power with other nations. Visa versa, if a nation exhibits particularly high inflation, it's exchange rate can be expected to depreciate as a result of decreased purchasing power.
exchange rates can likewise have an impact upon inflation. An appreciating currency makes imports cheaper, reducing inflation, particularly where those imports compete with local industries. On the other hand, a depreciating currency makes imports more expensive, and likewise improves the competitiveness of our exports, increasing income and the cost of imports, thus raising inflation.
that should answer it i think.
NEXT QUESTION: Outline two policies which may be used to reduce the CAD
Uni/.
Outline the relationship between exchange rate movement and inflation.
ouch.. tough question... well sort of
To analyse the impact inflation has on the exchange rate of an economy, one must also consider the inflation rate of other nations, particularly those that make up the TWI. If a nation's inflation is lower than the average, than their exchange rate can be expected to appreciate as a result of increased purchasing power with other nations. Visa versa, if a nation exhibits particularly high inflation, it's exchange rate can be expected to depreciate as a result of decreased purchasing power.
exchange rates can likewise have an impact upon inflation. An appreciating currency makes imports cheaper, reducing inflation, particularly where those imports compete with local industries. On the other hand, a depreciating currency makes imports more expensive, and likewise improves the competitiveness of our exports, increasing income and the cost of imports, thus raising inflation.
that should answer it i think.
NEXT QUESTION: Outline two policies which may be used to reduce the CAD
Uni/.
Re: Economics Marathon - The 2006 Version
Monetary Policy- by raising interest rates, it can lower business and consumer borrowing. Hence, due to lower economic activity, there'll be less import demand and lower net incomes.
Sorry.
Q: I still don't get this but how does fiscal policy reduce CAD?
Monetary Policy- by raising interest rates, it can lower business and consumer borrowing. Hence, due to lower economic activity, there'll be less import demand and lower net incomes.
Sorry.
Q: I still don't get this but how does fiscal policy reduce CAD?
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