Economics Marathon (1 Viewer)

[onebytwo]

Re: Economics Marathon - The 2006 Version

What is the cause of unemployment and how many types of unemployment are there?

different types of unemoployment include structural, frictional, cyclical, hidden, hardcore...

 

[zedzed]

Re: Economics Marathon - The 2006 Version

Next queston: Distinguish between comparitive and absolute advantage.

absolute advantage is when an economy can produce more of one good compared to another good using the same amount of resources.

comparative advantage occurs when the production of a particular good incurs the least opportunity cost as opposed to the production of another good.

geez they're hard to explain.

the question i meant to ask before was:

What is the effect of a strong dollar on inflation?

 

[Sparcod]

Re: Economics Marathon - The 2006 Version

Whose question shoul I answer? Obviously everybody's keen.

 

[joeyjojoshabado]

Re: Economics Marathon - The 2006 Version

Answer all of them..i dare ya

 

[Sparcod]

Re: Economics Marathon - The 2006 Version

Strong dollar lowers imported inflation as imports appear to be cheaper.

Next question: What are the roles of the WTO, IMF and World bank?

 

[onebytwo]

Re: Economics Marathon - The 2006 Version

Question: What are the advantages and disadvantages of protection? (sorry if its been asked already)

advantages of protection include -
- protects domestic employment from foreign competition
- prevents 'dumping'
- source of government revenue
- prevents increased imports which can alleviate CAD

disadvantages include -
- reduced incentive to innovate
- lesser quality goods/services and possibly higher prices and less consumer choice
- economic growth is retarted as EOS is not achieved
- export earnings fall as export industries dont target int. markets

feel free to add anything

 

[joeyjojoshabado]

Re: Economics Marathon - The 2006 Version

WTO:
- supervising the implementation of the latest trade agreements
- hearing and ruling disputes between nations on agreements
- initiative to reduce trade barriers to trade in the global economy

The IMF's key role is to provide financial assistance for economics experiencing problems such as sudden loss of important export markets, natural distasters etc

The World Bank assists developing countries with development strategies and assists with the provision of foreign aid

Question: How can Australia increase its international competitiveness?

 

[gemrism]

Re: Economics Marathon - The 2006 Version

Q:

What is the cause of unemployment and how many types of unemployment are there?

There are many causes of unemployment in the economy. It is for this reason that a variety of government polices are used to reduce inflation.
These causes are:
-Economic growth is not adequate enough to induce employment growth
-People choose to stay on welfare beenfits rather than work
-people do not ahve the skills to match those demanded by employers
-job losses are inevitable due to labour saving capital
-The labour market is overregulated discouraging employers to employ workers
-wage prices are too high and therefore jobs are lost to cheaper workers overseas

types of unemployment
-cyclical
-structural
-frictional
-seasonal
-long term
-hidden
-hardcore

 

[2006hsc]

Re: Economics Marathon - The 2006 Version

Question: How can Australia increase its international competitiveness?

I'll have a go...

Australia has attempted to increase internation competitiveness by:

- signing free trade agreements with various countries. This has introduced foreign companies selling goods in Australia, increasing domestic competition, thus increasing international competitiveness due to increased domestic productivity.

- The privatisation of many industries has been conducted. This is to reduce regulatory controls on their management, forcing these industries to become more efficient.

- 'Work Choices 2006" attempts to increase the labour force productivity to increase international competitiveness. This is attempted by tieing wages to productivity instead of inflation. Employers now have more bargaining power, forcing employers to work longer and harder for increased wage and conditions. This therefore leads to more productivity and output, leading to an increase in international competitiveness.

- Australia floated the exchange rate. (dont know how this increased competitiveness but it did)

There is a few more.
Feel free to add any i havnt mentioned or if any of mine are wrong.

Next Question - What can Australia do to try and decrease their CAD problem?
(well what IS Australia actually doing about it too?)

 

[Sparcod]

Re: Economics Marathon - The 2006 Version

On international competitiveness, it can be done through microeconomic reform to lower inflation and raise productivity in the long term. This also includes labour market reform, financial deregulation, privitisation and introducing the competition policy.

How is Australia reducing CAD?
Lets break them up.
SHORT TERM
- monetary and fiscal policy to influence economic activity levels and hence it can influence import demand and net incomes result.

LONG TERM
-microeconomic reform to increase effiency and hence, lower inflation to improve international competitiveness and level of exports.
-increase savings.

 

[Sparcod]

Re: Economics Marathon - The 2006 Version

NEXT QUESTION.... Explain what is meant by 'sustainable' economic growth.

 

[rev-ise]

Re: Economics Marathon - The 2006 Version

A level of economic growth which is within a range where it will not have major effects on other issues such as Inflation and the environment.

That's probably a little dodgy, correct me if I'm wrong.

Next question: Define 'Externalities'.

 

[Sparcod]

Re: Economics Marathon - The 2006 Version

Sustainable economic growth is one which other rising incompatible problems don't become a great concern which'll hinder future economic gfrowth such as inflation, environment, external stability and distribution of income.


Externalities- The indirect consequences of a production of a good or serive that impacts on the population/community.


ANSWER THIS...
Explain the causes of increased inequality in income disribution.

 

[passion89]

Re: Economics Marathon - The 2006 Version

ANSWER THIS...
Explain the causes of increased inequality in income disribution.

Increased inequality could be due to the implementation of a regressive tax (eg: GST) where those on higher incomes are tax proportionately less than those on lower incomes.
Also ethnic and cultural diversity can affect income distribution where migrants tend to be on the low-income scale.
Increased unemployment, increased differentiation between high-skilled and low-skilled workers also affect the distribution of income.


Next question:
Discuss the relevance of deregulation and outline its impacts on the economy.

 

[Sparcod]

Re: Economics Marathon - The 2006 Version

Deregulation is the removal of government restrictions and controls over markets so they can operate more freely.

Deregulation has its advantages:
-lowering of barriers will increase newcomers and allows emergence of newer firms to stimulate competition (eg. removing protectionist policies)
-increases efficiency as their outcomes are played by market forces
-competition policy based on workable competition (eg Optus)
-improves efficiency as the private sector runs businesses for the profit-motive(eg. corporitisation, privitisation)

Impacts include:
-structual change resulting in structual unemployment and business failures
...but also the emergence of newer firms for competition and lower prices.



This is a hard question. See if you can answer this question.

 

[joeyjojoshabado]

Re: Economics Marathon - The 2006 Version

shouldnt u guys be studying for english?

lol im sorry...resume the marathon..

 

[Sparcod]

Re: Economics Marathon - The 2006 Version

Sorry, that was in relation to the question I "answered", Without wings. It was ambiguous.

and Joey.. there'll be people just as bad or if not worse in terms of time managemnt. They could be studying for history extension, 5 minutes before a maths exam.

Next question:
Distinguish between direct, portfolio and other types of investent.

 

[passion89]

Re: Economics Marathon - The 2006 Version

This is a hard question. See if you can answer this question.

Lol don't worry, you answered it really well

 

[Sparcod]

Re: Economics Marathon - The 2006 Version

Ok. Must get my mind of English.......

I am doing something.
Define Ecologically Sustainable envionment
Sustainable economic growth in which future economic growth isn't hindered due to sacrificing of environmental resources.


Next question?
Outline the time lags associated with using monetary and fiscal policies?
(We can give each other if we take long to answer)

 

[lilkiwicutie89]

Re: Economics Marathon - The 2006 Version

Ok. Must get my mind of English.......

I am doing something.
Define Ecologically Sustainable envionment
Sustainable economic growth in which future economic growth isn't hindered due to sacrificing of environmental resources.


Next question?
Outline the time lags associated with using monetary and fiscal policies?
(We can give each other if we take long to answer)

Fiscal = short term - a few months - budget.
Monetary = meduim term 6-18 months ~ increase in interest rates


next question ?

Outline the factors that affect the demand/ supply factors.