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

1 what is opportunity cost and what does it mean2 what are

1. What is opportunity cost and what does it mean? 2. What are the eight guideposts to economic thinking and how to incentives fit into thinking like an economist? 3. What role does scarcity play in economic thought? Doe ...

Say that in year 1 both k and l have values of 1 while in

Say that in year 1 both K and L have values of 1 while in year 10 K has a value of 1.35 and L has a value of 1.1. What is the annual rate of change for k (note the lower case)?

A sudden and sharp increase in gas prices will have what

A sudden and sharp increase in gas prices will have what impact on the market for the following (be sure to discuss both supply and demand): Large gas guzzling vehicles. Small fuel-efficient cars. Research on alternative ...

Please provide a comprehensive answer to the following two

Please provide a comprehensive answer to the following two questions: 1) Which were the main causes of the Great Depression? 2) Why did the Great Depression last so long? Indications: - To answer these questions, please ...

You have been asked to assist your organizations marketing

You have been asked to assist your organization's marketing department to better understand how consumers make economic decisions.  Write  a 1,050-word analysis that includes the following: The impact the theory of consu ...

Why do grocery stores offer coupons think price

Why do grocery stores offer coupons? Think price discrimination.

Assignment russian economy outlookintroduction - 250 words

Assignment: Russian Economy Outlook Introduction - 250 Words +/- 10% • Provide an overview of the chosen country's economy. Production Output Performance Analysis - 500 Words +/- 10% • Real GDP, Real GDP Growth Rate, Rea ...

This question concerns labor mobility between countries a

This question concerns labor mobility between countries A and B. a. Say that country A's MPL = -L + 10 and country B's MPL = 2L + 1. What would be the optimal amount of L? Note: country B's MPL is written in terms of the ...

Which of the following curves reflects the idea that in the

Which of the following curves reflects the idea that in the long run, output is determined only by the factors of production and given technology? a. the aggregate demand curve b. the market supply curve c. the long-run ...

Why do we need microeconomicswhat makes perfect competitive

Why do we need microeconomics? What makes Perfect competitive firm efficient market? Explain the elasticity of demand and taxes. Explain increase demand and increase in quantity demanded. What makes pure monopoly an inef ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro