Economics : Unemployment Labour Markets and Externalities.

Question 1-

You are an Economist and have been asked by the Gold Coast Council of Queensland to provide advice on the policy options to deal with the increasing use of jet skis on the Broadwater. The increasing use of jet skis has had an adverse effect on other water uses and people who live in the near vicinity have complained about the excessive noise.

Question 2-

You are an Economist advising the Federal Government about the Australian Labour Market and issues relating to unemployment. The issues that you have been asked to report are:

a) If the labour market is working properly why does Australia experience simultaneous periods of unemployment and job vacancies?

b) Does the minimum wage prevent lower rates of unemployment?

c) What types of unemployment are the most serious? Explain your answer.

Rationale-

The questions address the following learning outcomes:

• be able to apply demand and supply analysis to make a range of market related decisions
• be able to explain and defend why it is important to understand the structure of the market in which a firm operates
• be able to critically examine and demonstrate why it might be necessary for government to intervene in the production of goods and services and in the distribution of income
• be able to examine critically the health of the economy as a whole through analysis of major economic variables and advise on likely policy alternatives.