Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Macroeconomics Expert

problem1)

At the national level, public debate has centred on the performance of the main monetary measure – GDP. Each year we must do better than the last; otherwise we are officially in recession…while GDP growth is important for raising living standards, it is not synonymous with happiness.

a) Critically discuss the strengths and weaknesses of using per capita national income (even once adjusted for purchasing power parity) as a measure of welfare.

b) Discuss at least two alternative measures of national welfare that have been put forward? What are the primary strengths and weaknesses of these alternatives?

problem2)

On 3 February 2009, the Australian Government, in response to the global financial crisis and fears of its impact on the Australian economy, announced the Household Stimulus Package to provide widespread assistance to low and middle-income households, as well as substantially increased expenditure on infrastructure. The total size of the Stimulus Package is estimated at $42 billion.

a) Briefly discuss the case both for and against governments engaging in active economic stabilisation.

b) What are automatic stabilisers, and how do they work?

c) Evaluate the following statement: ‘Fiscal policy is a very precise tool for controlling aggregate demand. If the government wants to increase aggregate demand by $5 billion, all it has to do is to carry out exactly $5 billion worth of government spending.’

problem3)

Australia’s east coast gas market –which has delivered comparatively cheap gas to industry and domestic consumers in isolation from the rest of the world – is heading for a huge shake-up that could see prices triple…after decades of isolation the east coast gas market will now be tied to the global gas market. And in this part of the world that means higher prices.

a) Employing the conceptual framework used to describe world trade, clearly illustrate and describe why opening the Australian gas industry to the export market will result in higher prices to domestic consumers. Be sure to clearly indicate any changes in producer and consumer surplus.

b) Although economists generally argue that increasing trade is good for economic welfare, there are a number of arguments put forward for why it might be a good idea to protect domestic industries from global competition. Clearly describe one of these arguments.

problem4)

The case for a global agreement to limit carbon-dioxide emissions has been bolstered after the world’s top climate scientists increased their level of confidence that humans are changing the climate…Greens leader Christine Milne said the report confirmed urgent and deep emission cuts globally were needed. She said the government had “no option but to abandon” its direct-action approach and take “urgent and serious measures immediately”.

a) Employing a supply and demand framework, clearly illustrate and describe why the free market may produce too many carbon-dioxide emissions.

b) The alternative to using ‘direct-action’ to reduce carbon-dioxide emissions is to take a market-based approach. Building upon the framework developed for the answer to part a above, clearly illustrate and describe how a market-based approach could be used to ensure carbon-dioxide emissions are reduced to their socially optimal level.

c) The framework employed in parts a and b assumes that individuals are perfectly rational. Briefly discuss some of the insights from behavioural economics that might lead us to problem this assumption.

problem5)

Economists are deeply puzzled by our desire to have children. First, kids are really expensive - the biggest financial decision most couples will make. Forget the cost of buying the family home; the kids you choose to populate it with will end up costing just as much, or more, over a lifetime. A survey released last week by AMP and the National Centre for Social and Economic Modelling found the typical Australian family spent $812,000 raising two kids. This is an increase of nearly 50 per cent in just six years. …Economists like to assume we are rational individuals who make decisions based on anticipated costs and benefits.

a) Working within a supply and demand microeconomic framework, illustrate the conceptual equilibrium number of children in a household.

b) One of the key ingredients for higher productivity is to lower population growth. Continuing to work within a supply and demand framework, discuss ways of lowering the equilibrium number of children in a household. Be sure to consider both the supply and demand side of the ‘market’ for children.

Hint – the supply curve can be thought of as the marginal cost of children, the demand curve can be thought of as the marginal benefit of children.

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M93583

Have any Question? 


Related Questions in Macroeconomics

Explain why in case of a price rise consumers would shift

Explain why in case of a price rise consumers would shift to a substitute whose price is lower.

A hierarchical network design methodology lets you design a

"A hierarchical network design methodology lets you design a modular topology that limits the number of communicating routers." Let' use VoIP as an example. tell me what is the architecture of a VoIP network?

Assignmentyour macroeconomic analysis paper should respond

Assignment Your macroeconomic analysis paper should respond to the following prompt: Analyze the extent to which the macroeconomic environment in the United States impacts the supply and demand of your chosen company's p ...

Molly has been told that if she can sell enough widgets

Molly has been told that if she can sell enough widgets annually, she will be in line for the following bonuses over the course of the next 3 years. A. Year 1 - $10,000 B. Year 2 - $15,000 C. Year 3 - $20,000 With this d ...

A consumers preference ordering over baskets of goods x1 x2

A consumer's preference ordering over baskets of goods (x1, x2) includes the following: i) she is indifferent between (5, 90) and (35, 10); ii) she strictly prefers (20, 50) to (5, 90). Check whether convexity of prefere ...

Define the economic concepts of opportunity cost supply and

Define the economic concepts of opportunity cost, supply and demand, and marginal analysis. Discuss how they could be applied to the decision making of individuals, health care providers, or the government.

In times of a struggling economic situation determine the

In times of a struggling economic situation, determine the key steps that the Federal Reserve should take to help stabilize the economy. Next, explain how your proposed steps will affect money supply, interest rates, inf ...

The attempts to control the price of gasoline below its

The attempts to control the price of gasoline below its equilibrium level in the 1970's led to shortages and long lines at the gas pumps. On the other hand, attempts to support the price of farm products above equilibriu ...

I the material of formwork timber or steel helps

Is the material of formwork (timber or steel) helps to reduce thermal cracks in concreting operation?

Assignment externalitiesbullconsider the following scenario

Assignment: Externalities • Consider the following scenario: The city council has just approved the construction of a water park in your town. You are responsible for studying the impact of the new water park on the loca ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate