Re: 2015 HSC Economics Marathon
Product market reform such as the National Competition Policy (1995) is an ongoing microeconomics reforms in Australia which regulates PTEs and infrastructure industries in an aim to eliminate anti-competitive behavior such as monopoly pricing and exclusive dealing. By implementing the NCP, the Australian economy's competitiveness has greatly increased, for instance, markets such as electricity and telecommunications have been opened up to competition through third party access. As such, productivity have improved and prices have been lowered for consumers. As a result, individuals within the economy has access to cheaper goods and services, leading to higher standard of living and an overall higher HDI rating. Furthermore, as the efficient industries continue to expand, despite the short term structural changes causing temporary unemployment, in the longer term job opportunities will increase and unemployment in the domestic economy will decrease.
you could also include Trade and Industry Policy but the question says 'reform' not 'reforms' so i'm not sure
Well done, and by reform i did mean plural,
Remember to link prices to inflationary pressures when you discuss lower prices for consumers (just to keep in tune with the idea of "performance")
For trade reform something simple like
"MER through reduction in protection, opened the domestic market to foreign competition. This has had a substantial effect in lowering inflationary pressures, as increased competitive pressures forced import competing firms to raise productivity and in the long term increase international competitiveness. This will improve long term growth due to an increase in (X-M) as firms gain a comparative advantage.
Also, something less talked about but equally potent is innovation policy.
Innovation policy (grants and subsidies to firms who can innovate)-> encourage business to innovate and remain competitive -> increased quality of life -> possibly environmental sustainability via innovation in "greener methods of production."
Innovation can also tap into global export markets (X-M) and new employment opportunities providing longer term sustainable sources of growth.
