Studying for eco (1 Viewer)

[#1 Fan]

Outline the main features of the budget

 

[monique66]

• Abolition of 10% tax surcharge on superannuation by high-income earners. This means that people will be encouraged to save (i.e. their MPS will increase)
• Single parents will be required to work once their youngest child turns 6. Disability allowances will be restricted to those incapable of working 15hrs a week.
• Eco growth: 3%
• Unemployment: 5% at a 38yr low.
• Tax cuts will increase Aggregate Demand as people have a higher MPC. However, this also means that the RBA may increase i/rates to counter inflation.
• Welfare to work schemes will encourage more people to work. This means that the unemployment rate will decrease and improve the efficiency of the market.
• GDP growth to rebound from 2% in 04/05 to 3% in 05/06. This means that we will be producing more X.
• Inflation is expected to stay moderate.
• X are tipped to rise but commodity prices are set to ease, moderating the increase in Australia’s mining company profits and tax payments. However, there has been increasing demand from China and the US for Australian commodities so this may increase our X.
• Underlying cash surplus of $8.9 bn. so the govt. is using concretionary monetary policy.
• Govt. debt is at an all time low of 6%

 

[Haku]

give a definination of aggregate demand and supply, and how it affects eco growth and CAD

 

[#1 Fan]

• Abolition of 10% tax surcharge on superannuation by high-income earners. This means that people will be encouraged to save (i.e. their MPS will increase)
• Single parents will be required to work once their youngest child turns 6. Disability allowances will be restricted to those incapable of working 15hrs a week.
• Eco growth: 3%
• Unemployment: 5% at a 38yr low.
• Tax cuts will increase Aggregate Demand as people have a higher MPC. However, this also means that the RBA may increase i/rates to counter inflation.
• Welfare to work schemes will encourage more people to work. This means that the unemployment rate will decrease and improve the efficiency of the market.
• GDP growth to rebound from 2% in 04/05 to 3% in 05/06. This means that we will be producing more X.
• Inflation is expected to stay moderate.
• X are tipped to rise but commodity prices are set to ease, moderating the increase in Australia’s mining company profits and tax payments. However, there has been increasing demand from China and the US for Australian commodities so this may increase our X.
• Underlying cash surplus of $8.9 bn. so the govt. is using concretionary monetary policy.
• Govt. debt is at an all time low of 6%

Ledgend!!!!!!!!!

 

[azza_3761]

Ledgend!!!!!!!!!

Ditto!!!!!!

 

[azza_3761]

give a definination of aggregate demand and supply, and how it affects eco growth and CAD

Aggregated demand = total demand output
Aggregates supply = total supply output

if AD > AS labour increases, wages increase, eco growth increase, imports
increase, CAD worsens
AD = AS stagnant economy
AD < AS labour decreases, wages decrease, eco growth decreases, imports
decrease, CAD improves

 

[Haku]

this thread seem so dead now...
i was asking so much questions, hope its not too much to ask to ask a few more.

what is a nations capital stock?
what does net investment include?
is economic growth promoted by capital widening or deepening?
what does capital widening or deepening mean?
what is a few examples of public provision of infrastructure?

 

[monique66]

this thread seem so dead now...
i was asking so much questions, hope its not too much to ask to ask a few more.

what is a nations capital stock?
what does net investment include?
is economic growth promoted by capital widening or deepening?
what does capital widening or deepening mean?
what is a few examples of public provision of infrastructure?

Yeah, actually the whole eco forum is kinda dead...

What's with ur questions? Either i am really dumb or i haven't seen stuff like that before. I suppose the public provision of infrastructure could include hospitals, roads and stuff like that. I forget what net I includes, its been so long. As for the other two q's i have no idea. Someone care to enlighten me please?

 

[Haku]

lol

are the question that strange?

i think its actually part of the multiple choice in past hsc i think, except i dun know the choices...but i am sure the question is 100% right?

 

[azza_3761]

lol

are the question that strange?

i think its actually part of the multiple choice in past hsc i think, except i dun know the choices...but i am sure the question is 100% right?

Yea i've never heard of aany of the questions. Are you sure that they are from a past paper after the new syllabus was introduced cos otherwise the questions wouldn't be relavant.

 

[Haku]

meh...if no answer than dun worry, some one ask a few questions thats RELEVANT to keep this revision thread active...

 

[monique66]

Briefly explain the different methods of protection

 

[Haku]

protection policies are adopted to protect domestic firms from international competition, saving jobs. But this lead to diseconomies of scale and firms will continue to function inefficiently and will have no motive to change, ie using new technology.

Protection include:
Tariff - tax on imports
qouta - limit the quantities of goods allowed to be imported into the country
embargoes - total ban of goods.
subsidies - provide tax relief or funds for firms to produce their goods more cheaply

 

[monique66]

Alright, but its good to note that often embargos are used in order to achieve a political objective. For example, many countires blocked trade with South Africa while it was under the apartheid regime.

Next Question: What are some of the reasons for protection?

 

[Haku]

while protecting our local industry is a very popular policy amongst the public, cause the short term benefits of employment could be well observed. But the benefits are about it, protecting our workers, esp those that dun speak eng as it is hard for them to retrain for new job in service industries.

gov't would get less tax/tariff income, but at the same time spend less on subsidies and other stuff....


is our current budget surplus 8.9bn or 9.2bn as i have read in "The Australian" to be 9.2bn but here in this site it says 8.9bn...

 

[monique66]

while protecting our local industry is a very popular policy amongst the public, cause the short term benefits of employment could be well observed. But the benefits are about it, protecting our workers, esp those that dun speak eng as it is hard for them to retrain for new job in service industries.

gov't would get less tax/tariff income, but at the same time spend less on subsidies and other stuff....


is our current budget surplus 8.9bn or 9.2bn as i have read in "The Australian" to be 9.2bn but here in this site it says 8.9bn...

Hmm..not sure about the budget, actually i forget
Oh yeah, and those reasons were cool, i would have added protection from dumping as well...someone ask the next q

 

[d_a_n_z]

How is economic growth measured?

 

[sunjet]

2 methods:

aggregate demand(total expenditure) = C + G + I + (X-M)
aggregate supply(total income) = C + S + T

or did you mean:

realGPD(current year) - realGDP(previous year) / realGDP (previous year) x 100/1

 

[monique66]

2 methods:

aggregate demand(total expenditure) = C + G + I + (X-M)
aggregate supply(total income) = C + S + T

or did you mean:

realGPD(current year) - realGDP(previous year) / realGDP (previous year) x 100/1

i think the later...

Question: What is the role of the APEC forum and what is its policy towards free trade?

 

[sunjet]

Meh, bit off topic
but does anyone know where i can get lorenz curve for australia? at least from year 2000 onwards!