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Factor markets (1 Viewer)

manscux

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HEY guys

just wanted to ask for factor markets is this correct for the mer ESSAY

capital --. deregulaition
labour --> labour market reform
natural --> i talked about how the carbon tax will prevent market failure and make producers change production behaviour to more ESD technology

SHOULD I HAVE TALKED ABOUT CARBON TAX could i loose marks

thanks
 

rawrence

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Looks good

Finance - Floating of the Dollar producing increased speculation and investment, Deregulation of Financial Firms exposing them to full competition
Labour - Decentralised wage determination system, boosting incentives to work more productively

I didn't even talk about market failure..I don't think it's necessary as it doesn't actually contribute to productivity; the main goal of microeconomic reform. It actually makes it worse. But this is my opinion.

You could probably be saying ESD contributing to the efficiency of Land resources but yeah.
 

funkygirl59

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you didn't even have to structure it like that.
micro reform affecting the operation of factor and product markets is simply the definition of structural change - word for word - if you look it up. every single micro policy causes structure change, so you should have done a paragraph on
- Deregulation
- Reforms to PTEs
- Decreases in protectionism
- Natoinal Competition Policy
- COAG
- innovation and industry policy
- labour market reforms
- environment.

I did exchange rates though haha purely based on the fact that micro reform is so damn boring to write about.
Don't worry though: you won't loose marks. You may lose some though :)
 

manscux

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you didn't even have to structure it like that.
micro reform affecting the operation of factor and product markets is simply the definition of structural change - word for word - if you look it up. every single micro policy causes structure change, so you should have done a paragraph on
- Deregulation
- Reforms to PTEs
- Decreases in protectionism
- Natoinal Competition Policy
- COAG
- innovation and industry policy
- labour market reforms
- environment.

I did exchange rates though haha purely based on the fact that micro reform is so damn boring to write about.
Don't worry though: you won't loose marks. You may lose some though :)
Hi.. teacher told us to do it like that. As decrease in protection does not affect labour market directly

you have to relate specific policy to specific factor markets.

while you are right that every single micro policy causes structural change, there is more to it...

i.e labuor market reform increases the quality of the labour force, as opposed to deregulation that lifts barriers in a way that subjects ths industry to competition.

DOES ANYBODY ELSE THINK I WILL LOSE MARKS FOR STRUCTURING IT LIKE THAT

ALL CRITICISM IS WELCOMED

what mark do u think i will get for this structure
 

funkygirl59

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yeah so you talk about how each policy causes structural change and link it all back to the question about product and factor markets. You would do a para on what we've done to reduce protection then write something along the lines of 'A decrease in protection causes a shift in product markets, as inefficient firms go out of business blah blah. It can also cause an increase in structural unemployment as workers are retrenched. However long-term, structural change that results from a decrease in protectionism should have a positive impact on markets within Australia, by encouraging allocative efficiency" etc. etc. and you can do that for all of them!
 

manscux

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THE QUESTION ASKED "WHATIMPACT DOES MICROECONOMIC REFORM HAVE ON PRODUCT AND FACTOR MARKETS" what your answer is saying is the effect of microeconomic reform on the australian economy (i.e. structural u/e is an effect on internal stability not neccessaarily on the factor and product market)

but anyway, what mark would you say i would get --> read the full essay scafold if you want on another thread --> really appreciated (pun, get it exchange rates)
 

eyeswideshut

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yeah so you talk about how each policy causes structural change and link it all back to the question about product and factor markets. You would do a para on what we've done to reduce protection then write something along the lines of 'A decrease in protection causes a shift in product markets, as inefficient firms go out of business blah blah. It can also cause an increase in structural unemployment as workers are retrenched. However long-term, structural change that results from a decrease in protectionism should have a positive impact on markets within Australia, by encouraging allocative efficiency" etc. etc. and you can do that for all of them!

you seem pretty pro at economics and I was wondering, would I be penalised for saying deregulation was a product market? cos I thought deregulation in agricultural industries affected products not factors of production and then I ended up putting deregulation together so said financial markets was a product.

also... is it completely necessary to mention Innovation and Industry Policy/environment? My essay was already 9 pages without that
 

manscux

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no you will no tlose marks, aslong as you had the issues seperate
 

determine

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hi, realise that in an essay, you CANNOT PHYSICALLY TALK ABOUT EVERYTHING there is related to a particular topic. as long as you have gone into sufficient detail with the policies you chose, you will be fine. it would have been a good idea to at least mention all of them and then delve into the more significant ones though.
 

funkygirl59

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you seem pretty pro at economics and I was wondering, would I be penalised for saying deregulation was a product market? cos I thought deregulation in agricultural industries affected products not factors of production and then I ended up putting deregulation together so said financial markets was a product.

also... is it completely necessary to mention Innovation and Industry Policy/environment? My essay was already 9 pages without that
None of the policies are the markets; they affect the markets.
Deregulation is usually associated with structural change to capital markets (i.e. financial industries) and agriculture (land) but it obviously affects product markets as well: financial assets, price of agricultural goods...
I mean, that's why i think dividing them up into product/factor markets wasn't the way to do it because they affect all the markets. One industry can operate in both markets at once i.e. agricultural industry clearly sells products such as wheat, but it also is about land resources...it all depends. I'm sure if you justified what you said you won't be marked down: everything's theoretical in the end, so you can argue any case.

Didn't have to mention everything but it would have made a better essay to at least write a quick sentence on everything, and maybe a bit more on environment since it's topical. But i didn't do the micro essay i did exchange rates... and I could definitely be wrong on what i'm saying this is all just how i see it :) good luck!
 

eyeswideshut

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None of the policies are the markets; they affect the markets.
Deregulation is usually associated with structural change to capital markets (i.e. financial industries) and agriculture (land) but it obviously affects product markets as well: financial assets, price of agricultural goods...
I mean, that's why i think dividing them up into product/factor markets wasn't the way to do it because they affect all the markets. One industry can operate in both markets at once i.e. agricultural industry clearly sells products such as wheat, but it also is about land resources...it all depends. I'm sure if you justified what you said you won't be marked down: everything's theoretical in the end, so you can argue any case.

Didn't have to mention everything but it would have made a better essay to at least write a quick sentence on everything, and maybe a bit more on environment since it's topical. But i didn't do the micro essay i did exchange rates... and I could definitely be wrong on what i'm saying this is all just how i see it :) good luck!
ooh okay thanks. did you do the monetary policy essay by any chance? How did you do it if you did?
 

funkygirl59

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ooh okay thanks. did you do the monetary policy essay by any chance? How did you do it if you did?
Haha yep I did monetary policy. I couldn't be bothered drawing the Keynesian cross diagram cos i didn't have a ruler haha (used the side of my calculator for exchange rates!)

Intro: Monetary policy is a macroeconomic policy that involves action by the Reserve Bank of Australia (RBA), on behalf of the government, to influence the cost and availability of money and credit in the economy. The main objectives of monetary policy, as stipulated in the Reserve Bank Act 1959, are price stability, full employment and economic growth, which are pursued through its main economic instrument: domestic market operations (DMO). Since 1993, monetary policy has focused primarily on achieving a sustainable level of inflation of 2-3% on average over the course of the economic cycle. By affecting the cash rate and thus the level of aggregate demand in the economy (C+I+G+[X-M]), the RBA has effectively managed inflation and consequently, many other economic objectives. Monetary policy can also affect unemployment, as labour is a derived demand from the demand for goods and services (AD). Whilst the goals of price stability and full employment are seen to conflict, recent monetary policy has shown Australia's effectiveness at achieving these goals simultaneously.

Something like that for intro. My teacher always says hit them hard haha cos they read shitloads of these things - so i always chuck detail in there. Can't remember my structure that well but basically:

Para 1: How it is implemented by the RBA on behalf of the government, quick to implement but time lags, influences aggregate demand

para 2: DMO --> explanation of ES accounts, how it can tighten or loosen policy...just the whole explanation of that

Para 3: whole concept of inflation targeting, why it does this (monetary policy is best at targeting one objective) why it's important (i.e. why inflation is shit) --> not sure this may have been two paras but whole theory behind why it seeks to affect inlfation

para 4: how it brings together DMO and need to maintain inflation i.e. explanation of transmission mechanism when inflation gets too high (or looks like it's gonna get high), examples of when they did this e.g. when GST was implemented, during resources boom, post-GFC

para 5: BUT it also can target unemployment --> it's second objective under the RBA act 1959. Explanation of transmission mechanism for employment i.e. it affects aggregate demand, labour is a derived demand and therefore by stimulating growth it stimulates lower unemployment e.g. during the GFC where it cut rates to 25 year lows in order to stimulate growth which meant we only peaked in unemployment at 5.8% unlike the US which got above 10% or something....and i always like to mention that it's not just monetary that did this but also fiscal - it's little macroeconomic friend haha with the 59.4billion stimulus package or something can't remember the figure atm but i knew it then haha.

para 6: competing objectves --> some say that inflation and unemployment are competing objectives, explanation of that e.g. unemployment needs growth but growth may = inflation due to demand-pull inflation....all that crap. the NAIRU etc....and how we can't stimulate employment beyond NAIRU cos it causes inflation. But then i said how this hasn't happened in Australia since the 1990s and inflation targeting and how the phillips curve is stupid. because it is. But i said it in a nice way so as to not offend Phillip.

conclusion: clearly monetary can affect inflation and unemployment but also mentioned here about how to maintain these dual objectives we have to use micro policies to lower the NAIRU and reduce supply constraints so as to increase the sustainable growth level which should manage inflation and unemployment, and it needs fiscal because they're good buddies.

:)
 

eyeswideshut

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Haha yep I did monetary policy. I couldn't be bothered drawing the Keynesian cross diagram cos i didn't have a ruler haha (used the side of my calculator for exchange rates!)

Intro: Monetary policy is a macroeconomic policy that involves action by the Reserve Bank of Australia (RBA), on behalf of the government, to influence the cost and availability of money and credit in the economy. The main objectives of monetary policy, as stipulated in the Reserve Bank Act 1959, are price stability, full employment and economic growth, which are pursued through its main economic instrument: domestic market operations (DMO). Since 1993, monetary policy has focused primarily on achieving a sustainable level of inflation of 2-3% on average over the course of the economic cycle. By affecting the cash rate and thus the level of aggregate demand in the economy (C+I+G+[X-M]), the RBA has effectively managed inflation and consequently, many other economic objectives. Monetary policy can also affect unemployment, as labour is a derived demand from the demand for goods and services (AD). Whilst the goals of price stability and full employment are seen to conflict, recent monetary policy has shown Australia's effectiveness at achieving these goals simultaneously.

Something like that for intro. My teacher always says hit them hard haha cos they read shitloads of these things - so i always chuck detail in there. Can't remember my structure that well but basically:

Para 1: How it is implemented by the RBA on behalf of the government, quick to implement but time lags, influences aggregate demand

para 2: DMO --> explanation of ES accounts, how it can tighten or loosen policy...just the whole explanation of that

Para 3: whole concept of inflation targeting, why it does this (monetary policy is best at targeting one objective) why it's important (i.e. why inflation is shit) --> not sure this may have been two paras but whole theory behind why it seeks to affect inlfation

para 4: how it brings together DMO and need to maintain inflation i.e. explanation of transmission mechanism when inflation gets too high (or looks like it's gonna get high), examples of when they did this e.g. when GST was implemented, during resources boom, post-GFC

para 5: BUT it also can target unemployment --> it's second objective under the RBA act 1959. Explanation of transmission mechanism for employment i.e. it affects aggregate demand, labour is a derived demand and therefore by stimulating growth it stimulates lower unemployment e.g. during the GFC where it cut rates to 25 year lows in order to stimulate growth which meant we only peaked in unemployment at 5.8% unlike the US which got above 10% or something....and i always like to mention that it's not just monetary that did this but also fiscal - it's little macroeconomic friend haha with the 59.4billion stimulus package or something can't remember the figure atm but i knew it then haha.

para 6: competing objectves --> some say that inflation and unemployment are competing objectives, explanation of that e.g. unemployment needs growth but growth may = inflation due to demand-pull inflation....all that crap. the NAIRU etc....and how we can't stimulate employment beyond NAIRU cos it causes inflation. But then i said how this hasn't happened in Australia since the 1990s and inflation targeting and how the phillips curve is stupid. because it is. But i said it in a nice way so as to not offend Phillip.

conclusion: clearly monetary can affect inflation and unemployment but also mentioned here about how to maintain these dual objectives we have to use micro policies to lower the NAIRU and reduce supply constraints so as to increase the sustainable growth level which should manage inflation and unemployment, and it needs fiscal because they're good buddies.

:)
wow i think we are looking at a state rank for you. repped :) but I feel okay cos I basically did like that, except i briefly talked about causes of inflation and u/e in the beginning. i hope thats not unnecessary
 

funkygirl59

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wow i think we are looking at a state rank for you. repped :) but I feel okay cos I basically did like that, except i briefly talked about causes of inflation and u/e in the beginning. i hope thats not unnecessary
haha thanks i hope so! 98 in trial so i'm hoping to do alright :) But you never know cos there's always so much detail you have to leave out! no no that's good to talk about that first i reckon; i was gonna do that but was running short on time. I mentioned briefly how monetary policy targeted root causes of both throughout the essay but semi wish i'd squeezed in a causes para :) ok i'm off: 4 exams next week them i'm done urgh.
 

eyeswideshut

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haha thanks i hope so! 98 in trial so i'm hoping to do alright :) But you never know cos there's always so much detail you have to leave out! no no that's good to talk about that first i reckon; i was gonna do that but was running short on time. I mentioned briefly how monetary policy targeted root causes of both throughout the essay but semi wish i'd squeezed in a causes para :) ok i'm off: 4 exams next week them i'm done urgh.
goood luck! I finish on tuesday with modern history :)
 

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