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Family conflict cause of homelessness assignment help

Literature Review

Introduction
Young people who go through homelessness, especially in countries like Australia, USA, Canada and England, have been known to use and sbude drugs. Prevalence varies across studies when studying substance use among homeless young people. This could be because of the understanding behind homelessness, and the concept in which it’s used for young people who are picked up from the streets and their ways of abusing drugs. Furthermore, this behavior correlated to age and the demography. However, based on the studies conducted, there has been an evidence of high use of substance among the homeless (Camlin & Ennett, 1998; Unger et al, 1998). Particularly, high rates of injectable have been recorded in many studies (Kipke, Unger, Palmer & Edgington, 1996; Kral et al, 1997). These researches show that, disregarding the type of drugs, homeless youth have found these in their possessions. Youth living on the streets, use drugs more often than the ones living under the roof with a family (Yares, Mackenzie, Pennbridge & Cohen, 1988; Miller and Draper, 2001). 

Drug Abuse and Family Conflict As Possible Concerns
There has been an acceptance that that drug and alcohol misuse is associated with homelessness with researchers debating about problematic drug and alcohol use as a cause of homelessness (Pathways, 2001). Many services of homeless youth state don’t have enough proof, but still that drug abuse is the cause of homelessness (Mallett et al, 2005). Others suggest that family problems and difficult relations are some of the other problems which forces the youth to abandon their homes and families. (Szirom & Desmond, 2001, p. 27). Department of Human Services (1998) state that family violence is the number one cause which push the youth to abandon their homes. Only 10% to 15% of the youth have been found to abandon homes so that they can use the substance for personal means. (Greenblatt & Robertson, 1993; Noble, 1999; Mallett, Edwards, keys, Myers, & Rosenthal, 2003). 

Critical Evidence On Family Conflict
Some reasons like physical, emotional or sexual abuse by a family member(s) have been to be rather critical reasons among the youth to runa way from homes (Cocekett & Tripp, 1995; Chamberlain & MacKenzie, 1998). Social factors too, have been linked with homelessness with several studies supporting it (Christiana, Abram, Clampam, Nayyar & Cotler, 2016), with specifically family violence being the utmost issue (Kral, Molnar, Booth & Watters, 1997). Persistent arguments which grew worse over time (Rew, 2008), neglect and abuse, including being blamed or singled out for no reason, are some of the other reasons for homelessness (Rew, 2008; Tyler & Cause, 2002). Children who have led a life which includes being imprisoned in houses or having to depend on child services or having faced unemployment or belonging to single parents, have higher chances of abandoning homes (Toro et al, 2007). These factors have also been seen among the youth, especially the LGBT youth, but little is researched about their reasons for going homeless (Dunne, Prendergast & Telfrd, 2002) 

In a qualitative study done by Marock, Corr and O’Sullican (2011), it was found that household instability and family conflict have impacted participants and their lives from early childhoods. Youth who have seen frequent family tensions and disruptions over many years have higher chance of leaving their homes. Furthermore, more than half of the youth identified with family violence, as something they all went through and thus became the cause of their homelessness.  Edidin et al (2012) also reported that children who came from household where parents were drugs addicts or addicted to drinking, homelessness was more common there. Thompnson et al (2010) also reported, like the former, that parental drug abuse is a cause for homelessness among youth. Lack of communication or negative communication among the family members can push a child to abandon their home (Thompson, Cochrane & Barczyk, 2012). Family conflict can often push a person to abandon their home, if there is constant conflict between family members (Mayovk, Corr & O’Sullivan, 2010). Youth who do not receive support from a young age resort to homelessness as they feel less self-sufficient and lack skills for self-development (Tyler & Schmitz, 2013). Furthermore, Thompson, Cochran and Barczyk’s (2012) study highlights the importance of family relationships and their impact on the mental health of the youth prior to homelessness. The impact of family relationship and its effect on youth mental health has been confirmed by Thompson et al (2010), who reported the experiences of youth when they face rejection by family members, thereby causing deep emotional damage (Altena, Brislleslijper-kater and Wolf, 2010)

Identified Gap
We found that majority of the studies have little to no research on the effect of drug abuse on homeless youth. Family conflict and drug abuse have been studied with low interest to see their effect on the homeless youth. There is a need to unpack the nature of conflict associated with homelessness. An appropriate framework cannot be planned, if proper research is not conducted in the former areas. This will be a hindrance to plan intervention strategies and support services. The paper will address the gaps, in particular dealing with youths below 17 years of age and family violence being the cause of their homelessness. 

References

Chamberlain, C., & MacKenzie, D. (1998). Youth homelessness: early intervention and prevention. Sydney: Australian

Centre for Equity Through Education.

Unger, J. B., Kipke, M. D., Simon, T. R., Johnson, C. J., Montgomery, S. B., & Iverson, E. (1998). Stress, coping and

social support among homeless youth. Journal of Adolescent Research, 13(2), 134–157.

Kipke, M. D., Unger, J. B., Palmer, R. F., & Edgington, R. (1996). Drug use, needle sharing, and HIV risk among

injection drug-using street youth. Substance Use and Misuse, 31(9), 1167–1187.

Kral, A. H., Molnar, B. E., Booth, R. E., & Watters, J. K. (1997). Prevalence of sexual risk behaviour and substance use

among runaway and homeless adolescents in San Francisco, Denver and New York City. International Journal of

STD & AIDS, 8, 109–117.

Yates, G. L., Mackenzie, R., Pennbridge, J., & Cohen, E. (1988). A risk profile comparison of runaway and

nonrunaway youth. American Journal of Public Health, 81, 208–210.

Pathways:Causes and consequences. (2001). Parity, 14(8), 27–29

Department of Human Services. (1998). Young people and drugs needs analysis. Melbourne, VIC:Drug Treatment

Services Unit, Victorian Department of Human Services.

Szirom, T., & Desmond, K. (2001). Young homeless people and problematic drug use. In Pathways:Causes and

consequences. Parity, 14(8), 27–29.

Ringwalt, C. L., Greene, J. M., & Robertson, M. J. (1998). Familial backgrounds and risk behaviors of youth with

thrownaway experiences. Journal of Adolescence, 21, 241–252.

Mallett, S., Edwards, J., Keys, D., Myers, P., & Rosenthal, D. (2003). Disrupting stereotypes: Young people, drug use

and homelessness. Melbourne:The University of Melbourne.

Cockett, M., & Tripp, J. H. (1995). The Exeter family study: Family breakdown and it’s impact on children. Exeter:

University of Exeter Press.

Toro PA, Dworsky A, Fowler PJ. Homeless Youth in the United States: Recent Research Findings and Intervention Approaches. Paper presented at the 2007 National Symposium on Homelessness Research.2007

Kral AH, Molnar BE, Booth RE, Watters JK. Prevalence of sexual risk behaviour and substance use among runaway and homeless adolescents in San Francisco, Denver and New York City. Int J STD AIDS. 1997;8(2):109–117

Altena, A. M., Brilleslijper-Kater, S. N., & Wolf, J. R. (2010). Effective Interventions for Homeless Youth. American Journal of Preventive Medicine,38(6), 637-645. doi:10.1016/j.amepre.2010.02.017

Castellanos, H. D. (2015). The Role of Institutional Placement, Family Conflict, and Homosexuality in Homelessness Pathways Among Latino LGBT Youth in New York City. Journal of Homosexuality,63(5), 601-632. doi:10.1080/00918369.2015.1111108

Christian, J., Abrams, D., Clapham, D., Nayyar, D., & Cotler, J. (2016). Intentions to Move from Homelessness to Social Inclusion: The Role of Participation Beliefs, Attitudes and Prior Behaviour. Social Inclusion, 4(4), 16. doi:10.17645/si.v4i4.643

Dunne, G. A., Prendergast, S., & Telford, D. (2002). Young, gay, homeless and invisible: A growing population? Culture, Health & Sexuality, 4(1), 103-115. doi:10.1080/136910502753389404

Hodgson, K. J., Shelton, K. H., Bree, M. B., & Los, F. J. (2013). Psychopathology in Young People Experiencing Homelessness: A Systematic Review. American Journal of Public Health, 103(6). doi:10.2105/ajph.2013.301318

T. (n.d.). Homeless youth: Characteristics, contributing factors, and service options. Journal of Human Behaviour in the Social Environm Ent. doi:10.1107/s0108270113015370/sk34882csup5.hkl

Mabhala, M. A., Yohannes, A., & Griffith, M. (2017). Social conditions of becoming homelessness: Qualitative analysis of life stories of homeless peoples. International Journal for Equity in Health, 16(1). doi:10.1186/s12939-017-0646-3

Mallett, S., Rosenthal, D., & Keys, D. (2005). Young people, drug use and family conflict: Pathways into homelessness. Journal of Adolescence, 28(2), 185-199. doi:10.1016/j.adolescence.2005.02.002

Mayock, P., Corr, M. L., & Osullivan, E. (2011). Homeless young people, families and change: Family support as a facilitator to exiting homelessness. Child & Family Social Work, 16(4), 391-401. doi:10.1111/j.1365-2206.2010.00753.x


Rew, L. (2008). Caring for and Connecting With Homeless Adolescents. Family & Community Health, 31. doi:10.1097/01.fch.0000304017.13255.12

Thompson, S. J., Cochran, G., & Barczyk, A. N. (2012). Family Functioning and Mental Health in Runaway Youth: Association With Posttraumatic Stress Symptoms. Journal of Traumatic Stress, 25(5), 598-601. doi:10.1002/jts.21744

Tyler, K. A., & Cauce, A. M. (2002). Perpetrators of early physical and sexual abuse among homeless and runaway adolescents. Child Abuse & Neglect, 26(12), 1261-1274. doi:10.1016/s0145-2134(02)00413-1

Tyler, K. A., & Schmitz, R. M. (2013). Family histories and multiple transitions among homeless young adults: Pathways to homelessness. Children and Youth Services Review, 35(10), 1719-1726. doi:10.1016/j.childyouth.2013.07.014

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Economics Assignment Help in Australia by Assignment Hero

Introduction:

Economic system and function have a central concept which is the theory of supply and demand. In a particular time with a particular price the consumer planning is buying any good of quantity demanded. The concept of the relation between demand and supply and how those affected each other are discussed in this assignment.

Question-1 Identify and explain the factors that determine the price elasticity of demand and provide illustrative examples, based on media reports, of the impact of each factor on the demand for a good or service.

Theory of Demand and Supply

An arrangement between buyer and seller is to getting information and business with one another known as the market (Baumol and Blinder, 2016). A competitive market is known as a market where many buyer and seller but not the buyer or seller can influence the price. The money amount needs to buy any goods known as money price. The good relative price -the ratio between the two is the next best one that is an opportunity cost.

Factors that determine the price elasticity of demand

The curve of market demand is depending on the sum in the curve of individual demand (Belloc, 2015). To buying at different prices the consumer’s plan showed a good quality of it.

Shifts in the demand curve

At the same price if the consumer wants to buy a higher amount of goods then it happen. If the demand condition shifts then this will happen.

https://lh5.googleusercontent.com/Fqv5oMprBHe4S2vii-rHbCfbMIWaeRz608Qc0cXsLOkocGTCK4LiSm3p9Q9TmYJCvuCRI89iTHKner5UdNdneGrM-k4zn54H609y1n-585QgcTNlwAvszgEkQqT9aTlJIarjPNNL

Diagram to show shift in demand

A shift to the right in the demand curve can occur for a number of reasons:

  1. Income: In disposable income increase, consumer enables to afford such goods. The various reason behind higher income, for example, higher wages and lower charges.
  2. Quality: An increasing is the good quality. Example Digital cameras best quality encourages people buying a new one (Belloc, 2017).  
  3. Advertising: The goods brand loyalty and demand increase. like Coca-cola increased its global sells by sending higher on advertising. 
  4. Substitutes: The price increase of Substitutes. Example- increasing the price of Samsung phones the apple i-phones demand as well. For Samsung, it is a major substitute.
  5. Complements: The fall of price increase complements demand. Like play station 2 lower prices are increasing the demand for compatible games in play station.
  6. Weather: The fuels get their demand for cold weather and clothes at warm weather.
  7. Expectations price increase in the future. Gold bought because of the speculative reason you will buy it now if you thought it will going up in the future.

Fall in demand

Lower income is the reason of demand fall or popularity decline of the goods.

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Supply

In a firm, huge supplies of good then

  1. To producing it has Resource and technology.
  2. Producing it firmly is get profit and
  3. The firm had a great plan to sell and produce it.

The possibility of a product is determined by technology and resources. For producing an item which technology is feasible that is a reflection of supply decision (de Rassenfosse, 2015). The producers plan for quality supplies of service and good at the given particular time and price. 

The Law of Supply

The law of supply states:

Remaining with the same things if the good has a higher price than the quality supplies is greater and if the price is lower Than the quality of supply is smaller.

The general tendency in a supply law is producing goods increase with the marginal cost as the production quality also increase (Gu and Chin, 2014).  If producing can cover their marginal cost in any production then they are eager supplies well.

Supply Curve and Supply Schedule

The price of a good and the quantity supplies are known as the term supply. The relation between the quantity supply and price shown in the supply curve and other influences remain the same as well.

Minimum-supply price curve is also a supply curve. Margin cost increased is the increase of quantity producer. Someone is selling in more unit rises at the lowest price.

  1. Price:  It is the main factor that influences the supply of any product with a greater extent. It has a relationship with the product price and supply as like as demand. The supply increases if the price is an increase in the product (Hailstones and Mastrianna, 2014). Due to price change with respect the supply also changing that is termed in the variation of supply to the product.  
  2. Cost of Production: If the product cost increases then the production supply of the product decreases. The cost and supply of the product are related inversely. A seller supply less product the market price of the product exceeds.
  3. Natural Conditions: In a certain product the climate condition directly affected. Example In the monsoon time the agricultural product supply increase so much. In another side the product supply decrease in drought time. There are so many crops which are climate specific and their growth also depends on climate condition. E.x In summer Kharif crops grow well and in winter Rabi crops are producing well.
  4. Technology: One important part of the supply is technology. The product production implies the better technology that also increases the production supply e.x-Good seeds and fertilizer increase the crops of production. The food grains supply also increase in the market.

  1. Transport Conditions: The product supply depends on the increase of transport facilities (Hilaire, 2015). In a supply of any product, transport remains a constraint. Sometimes Product is not available at time lack of proper transport facilities. For this, the supply of the product not increased but the price increased so much.
  2. Factor Prices and their Availability: In supply major fact is the act. The input materials like raw materials, machine, and equipment which are a need at production time known as factors. The production will be increased if the factor available in a lower price and sufficient quantity. That will also affect the production supply at the market. Example -Availability of raw materials in near and the cheap cost of labor the manufacturing also reduced transport and the labor cost for help. In the other side, the supply and production also increased.
  3. Government’s Policies: The government has a different type of policies. Such that industry and fiscal policy. That also gives a great impact on supply. The product supply decrease if the tax is increased. Another side the supply of the production is increasing if the tax decreases.
  4. Prices of Related Goods: It is the price fact in complementary and substitute goods affect the supply. If the wheat price increased the farmers grow wheat than née. That also decreases the rice supply in the market.  

Question-2 Will the Australian economy benefit from President Trump’s protectionist policies? Provide illustrative examples from media reports to support your answer and ensure that you consider the concept of comparative advantage.

Australia’s economic assurance and imminent fortune is threatened by the escalation of the barrier to the trade within the worldwide economy. The probable effect of the augmented global safety measure in Australia is being examined by a new Commission Research Paper which outlines procedural measures to curtail the overall impact of this new high risk drift (Lerner, 2015).

Over the span of quite a number of many years, progress and fortune in Australia has been fast tracked by truncating the blockades to global business and investment. Nevertheless, these advances are almost at the risk of getting retrogressive.

Ever since the Global Financial Crisis, the practice of rates and other protective means has risen in G20 nations while the protective drift has clear chances of speeding up. In support of the reappearance of the protective trade policies, Donald Trump has been elected as US President while in portions of Europe the exponents of trade barriers have been authorized (Trump, 2017). The increasing gush of the protectionist in some other places might cause several of them to reconsider the pledge of Australia to free trade. This is shown as a flaw in the investigation carried out by the Commission.  

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Figure: (Trump, 2015)

The probable implications of the considerable global rise in protectionism on Australia along with the effects of such changes in the policy backgrounds have been evaluated by the Commission (Trump, 2015). Among the most important circumstances that were studied, they were inclusive of the following impacts of:

The products imported from China and Mexico with an increased in the US rates the margin alterations made to the corporate income tax base being introduced in the US, in accordance to which income generated from the foreign sales would not be taxed and the while the calculation of taxable income will no longer consider the cost of the imported products to be set off against— this approach allows it to be comparable to a grant for exported products and a tax on the imported products the mounted trade barriers due to probable global septicity as the tariffs are increased by 15 percentage points by all countries as confronted by such global septicity:

•    The existing level of security is being maintained individually by Australia

•    in order to maintain their current level of security, Australia liaises with a group of countries like the Regional Comprehensive Economic Partnership (RCEP) which comprises of Australia, China, Japan, South Korea, India, New Zealand, and the ASEAN countries.

•    to further diminish the trade barricades, Australia does a collaboration with that alliance

On average, in every decile in the distribution of the income, the living standards would be worsened by the substantial rise in the tariffs globally. The earning per year would be stricken by a decline of around 1500 dollars among the families which have an average weekly income (Trump, 2015). However, these circumstances do not necessarily conclude that every family will be impacted by the same amount of magnitude.

On average, in every decile in the distribution of the income, the living standards would be worsened by the substantial rise in the tariffs globally. The earning per year would be stricken by a decline of around 1500 dollars among the families on average weekly income. However, this does not necessarily conclude that every family will be impacted by the same magnitude.

The typical drops cover significant variation among the earning deciles. A poorer living standard in nearly among 80 people out of every 100 Australians would be brought about by the substantial growth in global security as it has been figured out in the Commissions’ modeling (Trump, 2015).

Even though the drop would comparatively be minor for certain households, however near about 30 households among every 100 households would have to face a decrease of minimum 4 percent in their buying power. To elaborate this further, a family which is spending 2500 dollars every two weeks in the process of purchasing any goods or services would face a disadvantage of 100 dollars every two weeks.

The model of the Commission projected a scenario which was grounded on RCEP members to demonstrate the probable impact of following the slackening of trade additionally (Trump, 2015).

In relation to a scenario where every country would considerably elevate the barricades to trade, on the edge of the growth at another place if RCEP members only kept the tariffs at the existing levels, according to the Commission’s modeling it portrays that the adverse effect on the income level of Australia would essentially be compensated and the fall in the living standards would be reduced by almost a factor of five. In Australia, the financial activity would be around more than 2.5 percent (or higher than the growth of existing levels per year) if the tariffs could be slackened a little more.

If RCEP countries could stretch the slackening exertions to the barriers on which there are no tariffs and also the barricades to the services trade, the advantages would be much greater than this. A family with an average weekly gross income of around 1600 dollars would be more benefitted by 44 dollars every week (Trump, 2015).

Conclusion:

Furthermore, to curtail the current barriers yet there remains a substantial possibility to do so. As it is quite difficult to enumerate, the approximations of the barriers which do not have tariffs as well as the ones to services trade are usually in elevation. No reason in point of fact could justify so as to why Australia could not have advanced individually. As much as adopting similar moves by our trading partners would not be a dependent of letting down these barriers, while the advantages would be for most of the part and distributed at large across all the Australian families and trades.

References

Baumol, W. and Blinder, A. (2016). Microeconomics. 10th ed. Mason, Ohio: Thomson/South-Western, pp.1-15.

Belloc, H. (2015). Financial Crisis, the practice of rates and other protective means has risen in G20 nations. 8th ed. Freeport, N.Y.: Books for Libraries Press, pp.2-25.

Belloc, H. (2017). On. 10th ed. Freeport, N.Y.: Books for Libraries Press, pp.2-25.

de Rassenfosse, G. (2015). On the Price Elasticity of Demand for Trademarks. SSRN Electronic Journal, 140(12), pp.1-15.

Gu, Z. and Chin, Y. (2014). Essays on imperfect rationality. 10th ed. United States: Melbourne, pp.1-15.

Hailstones, T. and Mastrianna, F. (2014). Basic economics. 10th ed. Cincinnati, Ohio: College Division, South-Western Pub. Co., pp.1-15.

Hilaire (2015). Australian economy benefit from President Trump’s protectionist policies. 6th ed. Freeport, N.Y.: Books for Libraries Press, pp.1-5.

Lerner, A. (2015). Interest Theory–Supply and Demand for Loans or Supply and Demand for Cash. The Review of Economics and Statistics, 26(2), p.88.

Trump (2017). How should Australia respond to increased global protection?. [online] Pc.gov.au. Available at: https://www.pc.gov.au/news-media/pc-news/pc-news-august-2017/rising-protectionism [Accessed 24 Apr. 2019].

Trump, H. (2015). media reports to support your answer and ensure that you consider the concept of comparative advantage.. 10th ed. Freeport, N.Y.: Books for Libraries Press, pp.5-50.

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Economics and Quantitative Analysis: Linear Regression Report

Purpose

The recent growth in number of online universities has been one of the biggest challenges to the sector of higher education. Purpose of this limited report is to conduct a simple linear regression analysis to assess the relationship between the Graduation Rate as dependent variable and the Retention Rate as independent variable by using the data gathered from the Online Education Database.  

Background 

Today in higher education there are a number of change drivers. The main drivers include globalization, technology, economy, changing demographics, changing student expectations, increased demand for accountability, and changing employer needs (Kemelgor, 2000). The influence of these drivers is significant and transformative as a whole. Therefore, a number of researchers are in-line that higher education has faced disruption due to the online learning innovation (Christensen, 2011). Online or distance learning is a disruptive innovation in a sense it allows an affordable, simple, and accessible product to replace the conventional learning system that is expensive, complex, and inaccessible. Even the relatively new product’s quality is inferior. Nevertheless, distance learning has witnessed significant transformation since its origin. The transformation has resulted in positive implications for its growth and establishment as about 50 online open universities have opened since 1970 (Altbach, 2007). From many aspects the open online universities can be considered as forerunners regarding the tackling of challenges that are confronted by the higher education system around the world (Anderson, 2005).

There are about sixty percent education institutions which have agreed that online learning is an integral and important part of their overall learning system. Moreover, there is huge difference between the success and growth of online institutions. The enrolment in online course grew about twenty percent in comparison to only two percent growth in enrolments in overall education system. Furthermore, about thirty percent of all students take minimum one online course (Allen, 2010). 

The effective combination of factors like curriculum, pedagogy, and time spent on courses have contributed substantially towards the success of online education. Overall, the studies have agreed that online teaching is very helpful regarding promotion of learning in comparison to conventional mode of learning. In this way, it can be implied that the relationship between graduation and retention varies between the conventional courses and the online courses. However, the strong relationship between graduation rate and the retention rate is critical to the success of online universities as well as the conventional higher education institutions. The economists would be interested in this particular issues because retention rate and the graduation rate reflect upon the stream of workforce the state or the institutions will be receiving. In the light of the analysis, the economists can guide the governments to improve the existing labour force and education related policies (Dutton & Dutton, 2017). 

Method 

The first step in the analysis of the data is to identify the nature of the variables. It is already given, the retention rate is the independent variable while the graduation rate is the dependent variable. The independent variable is the one that is subject to manipulation as it is used to experiment and analyse its effect on the dependent variable. This study manipulates the retention rate to explore its effect on the dependent variable the graduation rate. Both variables in this case are continuous as they can take value between its maximum value and the minimum value. Mainly, simple linear regression analyses will be used to answer and address the purpose of this study. Following formula have been used to perform the simple regression analysis: 

Y=bX+A

Where predicted score is reflected by ‘Y’. The slope of the line is reflected by the ‘b’, and A is the intercept of Y. Overall, the line reflects how much change is reflected in the dependent variable by the unit change in the independent variable (DeGroot, 2012). After that a scatter diagram will be used to analyse the relationship between the two variables. It is followed by analysis of whether the regression equation provide a good fit. Then there is analysis of the situation from the point of view of the president of South University and from the president of University of Phoenix regarding the performance of the university in comparison to the overall performance of the online universities. 

Results 

a) Descriptive analysis 


Retention RateGraduation Rate
Mean 57.4141.76
Standard Deviation 23.249.87
Minimum 4.0025.00
Maximum 100.0061.00

b) Scatter diagram 

The above scatter diagram reflects positive association between the graduation rate and the retention rate as it is clear that there is increase in the graduation rate with the increase in the retention rate. However, the points are not closely grouped together with the line, it is an indication of a positive but weak association between the two variables. 

c) Regression equation 

To predict graduation rates, a simple regression line has been developed and it will be written as below: 

Graduation rate = α + β * Retention rate 

Here α is constant and β is parameter. 

d) Interpretation of the slope coefficient 

Standard errors in parentheses

***p<0.01, **p<0.05, *p<0.1

The above table reflects a positive relationship between the graduation rate and the retention rate. If there is one percent increase in the retention rate, there will be an increase of about 0.285 percent in the graduation rate and at the 0.1% level of significance, this result will be significant statistically. 

e) Is there significant association statistically between the retention rate and the graduation rate? 

As per the table presented in the previous section, there is significant association between the retention rate and the graduation rate as discussed in the previous section. 

f) Did the regression equation provide a good fit? 

To comment on the goodness of the fit of the regression equation, there is need to analyse the R2 and the residual plot given as below: 

The probability plot is used to analyse the goodness of the model. Likewise, it is clear from the above graph that the points are not strongly grouped around the line. It is an indication of weak relationship between the variables hence, it is hard to comment regarding the goodness of the fit of the regression equation. 

g) Analysis as the president of South University

According to the above analysis, there is weak but positive relationship between the retention rate and the graduation rate. As president of the South University, there is need to be concerned about the performance of the university in comparison to other online universities because there does seem strong relationship between its retention rate and the graduation rate. If, the university is unable to improve its retention rate, there is possibility the graduation rate of the university will fall hence, the as president of the university there is need to be seriously concerned. 

h) Analysis as the president of University of Phoenix 

As the president of University of Phoenix, there is not any need to be seriously concerned regarding the performance of the university because in comparison to the other online universities, there does not seem any strong relationship between the retention rate and the graduation rate of the university hence, there is not any need to be seriously concerned regarding the performance of the university. 

Discussion 

The simple linear regression, descriptive statistics, scatter plot, and different post estimation tools have been used to analyse the association between the graduation rate and the retention rate. The results of the tools used reflect a positive association between the two variables however, the model applied does not fit properly and completely. Moreover, only about 50 percent variation in the graduation rate is explained by the retention rate. Other studies as cited in the background section of this report highlighted that there are other factors that influence the graduation rate and the retention rate is not the only one variable. Furthermore, there are not clear policy implications on the basis of these findings. Nevertheless, policy makers must consider the retention rate in their policies as important factor to improve the graduation rate.  

Recommendations 

This study reflects that there are not satisfactory results given by the model and there are other factors other than the retention rate that influence the graduation rate. Therefore, it is recommended to study the influence of other factors on the graduation rate. There is no simple yes or no regarding the influence of the retention rate on the graduation rate as it is very costly to precisely analyse the association between the two variables. There is need of rigorous information for a researcher from this field to identify the perfect model to improve the graduation rate and ultimately the educational productivity and there is need to consider effects of other factors like subject domain, students served, budget, scale, level of mixing, and the role of the teacher in online modules. 

References 

Allen, I. a. S. J., 2010. Class Differences: Online Education in the United States. s.l.:Sloan Consortium .

Altbach, P. G. a. J. K., 2007. The internationalization of higher education: Motivations and realities. Journal of studies in international education, 11(3-4), pp. 290-305.

Anderson, T., 2005. Distance learning–Social software’s killer ap?. s.l.:s.n.

Christensen, C. M. a. H. J. E., 2011. The innovative university: Changing the DNA of higher education from the inside out. s.l.:John Wiley & Sons.

Dutton, J. & Dutton, M., 2017. Characteristics and Performance of Students in an Online Section of Business Statistics. [Online]
Available at: https://www.tandfonline.com/doi/full/10.1080/10691898.2005.11910564
[Accessed 04 02 2019].

Kemelgor, B. J. S. a. S. S., 2000. Forces driving organizational change: A business school perspective. Journal of Education for Business, 75(3), pp. 133-137.

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Economic Assignment- Answer

Economic Assignment

Assignment

Question 17: Christmas tree investment

Suppose a business person approaches you with the following Christmas tree production proposition with figures calculated on a per hectare (ha) basis. Estimate the net present value (NPV) of this investment using a 7% discount rate. On the basis of your analysis, would you be willing to invest if you had available funds? Why or why not?

 

YearActivityAmount ($/ha)
0Purchase land2000
0Prepare land and plant trees1500
1Weed control200
2Thin the stand300
3Prune and shape trees400
7Net harvest revenue from the sale of mature Christmas trees7200

 

Show your working

Rotation Year
Activities1234567
Weed control200
Thin the stand300
Prune and shape trees400
Total expenses200
Net revenue7200
Net profit-200-300-4000007200

 

Present value

Capital Budgeting
Year 0Year 1Year 2Year 3Year 4Year 5Year 6Year 7
Initial cash flow (W-1) $    3,500 $      (200) $      (300) $      (400) $           – $           – – $    7,200
Operating cost flow(W-2) – $           – $           – $           – $           – $           – $           – $           –
Net cash flow $    3,500 $      (200) $      (300) $      (400) $           – $           – $           – $    7,200
Discounted cash flow/ Required return (12%) $             1 $       0.93 $       0.87 $       0.82 $       0.76 $       0.71 $       0.76 $       0.71
Present value of cash flow  $    3,500  $      (187) $      (262) $      (327) $           –    $           –    $           –    $    5,134

Net present value

Net present value = $858

This investment is suitable for person to grow because it can help to improve income within seven years. Net present value shows positive amount after seven years so investment is best suitable for person.

Question 18: Fiscal and Monetary Policy

 

(a) Name the agency or institution responsible for (i) monetary policyand (ii) fiscal policy in Australia. (2)

 

Reserve Bank of Australia is responsible for monetary policy. Its growth is determined by the actions of a central bank, regulatory committees or currency board.

On the other hand, fascial policy is largely based on the concept or idea of John Maynard Keynes who is the British economist and believed to bring the positive change in economics tax rates adjusting government spending. It is also carried out by the legislative and/ or the executive branches of government by considering two main instruments i.e. expenditures of government and taxes

 

(b) In Australia, the principal tool of monetary policy is the target cash rate (TCR). Give a definition of the TCR and state the two main factors that would need to be considered before the TCR was raised or lowered.                                             (4)

Monetary policy decisions are expressed in terms of TCR. It is also known as overnight money market interest rate or relevant interest rate for Australia.

Stability of Australia’s currency and maintenance of full employment in the country are need to be considered. Welfare of the people of Australia by the economic prosperity are also considered as the objectively part.

 

(c) What effect on the money supply would an open market sale of government bonds have?

                                                                                                                                                (1)

The open market operations conducted by the Federal Reserve affect the money supply of an economy through the buying and selling of government bonds and securities

 

(d) According to standard Keynesian analysis, how should a fiscal contraction affect GDP and unemployment?                                                                                                   (2)

Keynesian believes that typical level of unemployment is not ideal because it is subjected to the caprice of aggregate demand and prices adjusts only gradually.  Fiscal contraction can effect unemployment taking into account certain factors such as increase in technology advances, cooperate values, seasonal fluctuations certain economic factors.

The gross domestic product (GDP) is the total market value pf goods and services the country produces. When the economy goes through a business cycle changes GDP is affected negatively or positively depending upon economic contraction, economic through, economic expansion and economic peak.

  • In 2008, Christina Romer, President Obama’s chief economic advisor, estimated the fiscal multiplier for the USA to be about 1.6.If, at that time, the Federal Government of the USA had estimated that GDP was $400 billion below its potential, by how much would it need to increase government spending to restore the economy to full employment, if Professor Romer’s estimate of the multiplier was correct. (2)

If the estimation of the Professor Romers was correct then the fiscal multiplier should decrease twice it was before in order to keep the balance in the economy. Reason behind this decrease is that US government is spending billions in war and other projects which are surely going to make this country go into the economic crisis. So avoid that the fiscal multiplier should dropped down twice then it is now and that’s the solution to stable the economic condition of the company.

 

(e) Robert Barro has argued that Romer’s estimate of the multiplier is much too large and that, in fact, the fiscal multiplier might be close to 0. What factors can you suggest to support Professor Barro’s view?                                                                                     (4)

The exchange of the micro goods has given the rise to this debate as some people agree with the Barro view and some disagree. In my personal view the fiscal multiplier can’t approach to zero because this is the ideal condition and we should respect the economy as well. As the Barro cover the most of the debate by relating it to the WWII but now this world is not in the state of war like that and for that being said we can now stable the economy even if the fiscal multiplier is high.

The stimulants of the economy are playing the major role in this situation as the pro-stimulants are not giving the better evidence to prove the fiscal multiplier is effective in fact there is no evidence like that. That’s why keeping in view I admit that no one can trust the tax cut which is increased 4 times in the US because of the government boosting in spending money.

That’s why the fiscal multiplier should kept a bit high so that government can stable the economy instead of increasing the tax and putting burden on the civilianzs.

.

 

19: Media Article 1                                                                                              (20%)

The following four questions refer to the article Appetite for house price rises outstrips concern for equity, by John Quiggin (article reprinted at the end of the exam paper)

  1. The Coalition Government claims Labour’s policies to scrap negative gearing on existing investment homes (but not new investment homes), and to reduce the generosity of the capital gains tax concession on investment properties, will drive down house prices. Illustrate with a supply and demand diagram and describe with reference to your diagram the basis for the Coalition Government’s claim.                            [8]
Cost Increases

 

Price increases per year even if the construction cost decreases.  It is due to the stamp duties which is the large and economically unjustified taxes on home buyers that eventually increase in the price raise. Both capital gain and land taxes applied. Following figure shows the relationship between them.

Recommendation:

Taxes should decrease accordingly, government should be able to reduce the construction cost by controlling inflation as well.

 

 

  1. No doubt some “Mortgagors have bet heavily on the assumption that house prices will continue to rise”. Suppose Labour was elected in 2016 and their housing policy changes are implemented and do result in falling house prices, as you illustrated above. Describe how this may potentially affect investors who are relying on capital gains to make their investment financially viable. Then in your supply and demand diagram for (a), illustrate and describe how the presence of these investors could exacerbate the house price fall brought about by the housing policy change. [6]

 

According to the provided supply and demand diagram, investors may also get affected somehow but the capital gains from the financial investments may also be maintained by the government revised policies of taxes. Economically Unjustified taxes on home buyers should be reduced in order to keep the constant graph.

 

  1. “Surely everyone supports more affordable housing. In fact, as Abbott is clearly aware, the opposite is true”. If they were elected in the 2016 federal election, the Labour Party is promising to modify housing policy (negative gearing and capital gains tax concessions) to reduce upward pressure on housing prices. Explain why for decades federal Labour and Liberal Party policies on housing have promoted less affordable housing.

Labor’s housing tax plan will deliver a reckless trifecta of lower home values, higher rents and less investments. Driving down the value of the most important asset for most Australians is not a strategy for economic growth and enhanced prosperity. For decade’s federal laboour and liberal part policies on housing have promoted less affordable housing to increase the market share for the investors who relay on capital gains. Inflation is increases rapidly and the cost is also increases per year. For maintain the quality and demand less affordable housing was the main practice.

 

  1. Multiple Choice: Select one out of the four options.

According to John Quiggin, increasing unaffordability of housing in Australia is due to (2):

  • Informational asymmetries
  • The public good nature of housing
  • Government failure
  • Externalities of housin

 

 

Government failure.

 

 

 

 

 

 

 

 

 

 

20. Media Article 2                                                                                              (20%)

Theitalicizedquotesbelowaretakenfromthearticle,“CrunchtimeforAustralia’scarmakers”,whichappearedinBusinessDayonFebruary12th2012 (article reprinted at the end of the exam paper).The quotes have also been underlined in the article to make them easy to find. Answer the questions that follow each quote.

 

  • Under the system of tariffs on importedcars and hefty subsidies for the localindustry,carbuyers areeffectively paying I suggest using diagrams to aid in each of your explanations for i and ii.

 

  • Explain how a tariff raises the price paid of a locally produced car. Who gains and who loses? (6)

 

In 2009-10, the industry has produced more than 2300 cars that take time and total government assistance can improve the subsidies, tax break tariffs and was produced $1.625 billion tariff according to productivity commission. The subsidies are just $7000 at the average price of $25000. The percentage of price of Australian car is direct assistance to oppose the assistance such as tariff of total $573 million. The industry spread across the car makers, employs 46000 building cars where the 200000 indirect part services and sales.

The tariff increases the price paid for local produced car by the government that has to add Holden cut 100 casual land contracts. Due to increase the tariff, Toyota has announced about 350 jobs and cut the price. The industry from coalition’s decision is to subsidiary package, putting pressure on Abbott to reveal long-term plans of car.

 

The tariff is a fee that is assessed on important. It can be imposed on various methods that stick with specific charge per unit. It represents per unit charge that has to be paid to the government across the goods into the country. In this case, car tariff increases on the import of car that can improve the local car’s positioning in the available market and can bring the change for international prices. The local car gain more from the tariff because impose high tariff on imports can increase the price of international cars so the local car would be sale at low price.

 

 

 

 

  • Explain how a subsidy reduces the price of a locally produced car. Who gains and who loses? (6)

The supply and demand curves for given products are created by developing relationship between price and quantity. According to theory, the supply and demand of real world would tends to move on quantity produced for equal demand by the customers and point of graph on basis on interest for the demand curve.

The government pays Car Company a certain amount for each environmentally conscious car produced and evaluated that supply side of subsidiary influence. So, the government provides money to every buyer to improve the sale volume of company. The government provides supply side to the producers of a product that can increase the sale volume but the supply would be reduced due to subsidiary.

  • ”Every country that has successfully industrialised has doneso with someinvolvement of government policy and by favouringlocalmanufacturing,”

 

  • This looks like the “infant industry” argument. Did it (or does it)apply in the case of the Australian car industry? (3)

The infant industry theory is based on supposition that domestic industry need protection against international competition until it would be mature and stable in the market. The government provides favor to local car company to improve its infrastructure and needs to improve performance by establishing the competitors. Infant industry theory is applied for developing the local car that need to protect the international competitors from the damage or destroying the domestic infant industry. It improves responses for the government on basis of tariffs that Australian government already providing to local car company in order to control international competitors for beating the price of infant industry.

 

 

 

  • What would you recommend the Federal Government do about its broader Industry Assistance Programme? Justify your advice with economic rather than political (5)

The Federal Government increases tariff for improving competition of local car with international car industry. It is recommended that the Australian Government comprised about gross tariff output assistance that imported input, estimated net assistance and improve the performance with reducing cost. The government should impose tariff on international industry of car such as Toyota to increase the price of their cars that can improve the productivity. The manufacturing industry received the high level assistance including tariff, budget, and tax concessions that can improve primary production.

 

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ECONOMICS ASSESSMENT- Answer

Economics Assessment

Essay 1:

Taxes influences on every person.  People pay taxes because they have no option but to pay tax the government.  There are several things that are reflected in taxes and how they function for the country and people.  There have been various strategies with taxes to improve the economy.   The argument described relates to the business travelers and leisure travelers in the sense that when governments levy taxes on the companies such as airlines they increase the travelling costs and price of other services provided to the travelers hence, they passed increased taxes on the customers.

Business travelers are those travelers whose all expenditures of travelling are compensated by the company for which he works. Leisure travelers are different from business travelers who usually expend more on their travels, leisure travelers are inclined to be more price complex than their business colleagues. Consequently, it can be said that business travelers completely depend on their companies whereas leisure travelers are not bound by any company.

Leisure travelers direct impacts by the taxes whereas business travelers doesn’t affect directly by the taxes of the government.

 

Pricing and Elasticity of Demand 

Most of the stakeholders in the retail sector consider a prediction on the effects of the price change to the purchasing power of the consumer as the most fundamental factors considered when making decision on price. When a company makes a decision of changing price to attract customers, it must consider the effect the change will have on the profit rather than just on the income alone. It constitutes the assumption of elasticity of demand in the prevailing market structure of the product. In a perfect competition market, companies are likely to have a perfectly elastic demand. It arises because if firms increase the price, then the consumers with good information would shift to other firms that offer better and identical products. Business managers, therefore, must pay close attention to marginal revenue and marginal cost (Newbold & Carlson (2007).

Marginal Cost and Marginal Revenue 

Marginal cost occurs because of an increase in commodity production. Marginal revenue is the change in that occurs when supply increases. The change in price of the product will lead to a change in the quantity of the product produced. The direct impact of these changes will affect the marginal cost and marginal revenue, which will change the product profit, (Newbold & Carlson, 2007). When using the estimated elasticity in demand, price elasticity shows the sensitivity of the demand and services of product compared to a unit change in the price. This means that by increasing the output of the product by one, unit the revenue increases according to the price adjusted. Marginal cost is a variable that determines the labor costs, material costs and fixed costs such as administration. Profit equals to the difference of marginal revenue and marginal cost. For-profit maximization, resources should be concentrated in areas where the excess of marginal revenue is more than that of marginal cost (Newbold & Carlson 2007).

Consider an example of a perfect competition case whereby the cost function is given by the formula TC=200x +15×2, and the function of the demand given by P=1200-10x.

TR=1200x-10×2

And MR=1200-20x, also MC =200 +30x

Therefore, the profit is maximized at a point where MR=MC,

1200-20x=200 +30x, x is thus =20.

The price that is associated with the index x=20 is at the point where p=1200-20(10) =1000

The firms profit is thus 20(1000)-20(200)-15(20)2 =10000.The profit is positive hence the optimal output for the perfect competition is at x=20.The price is at 1000 and the profit =10000

Changes in Business Operations that affect the mix of fixed and variable costs 

Using the Cost Volume Profit (CVP) analysis, one can analyze the changes that will occur when business processes change. Changes in business activities are the factors that affect the cost of products. Variable costs may include materials, labor costs and sales commissions. These costs change when the business activities are either increased or decreased. If the company decides to make more products, the materials and labor cost increases thus increasing the variable cost of the business. When a company offers commission for sales, the cost running the business also changes directly in relation to the commission paid.

Fixed costs are those remain constant in relation to the operations of the businesses. Costs such as rent of the business premises, salaries, insurance and depreciation are all fixed costs. These costs remain constant and do not change in relation to the commodity production and sales. A change in operations affects the variable costs when the production costs of the goods increase. Hence, when automating the production cost, labor costs may reduce. Industries often experience the need to train new staff. The introduction of automatic and robotic machines will help reduce this gap and allow the current staff to be allocated to more value adding tasks. These in turn reduce the labor turnover of the cosmetic industry through improved workplace conditions. The mix of the fixed costs and variable costs determines the operating cost of the business with the total cost being the sum of the two. Any changes in the variable cost changes the total cost of the business that may affect the profit of the business (Rittenberg, 2008).

Credit Market

In an economy where there is uncertainty, many firms feel the pain of reduced activity. The order for the customers fall, there is scrutiny in the management decision, and both lenders and seekers seek low-risk investment. Due to this, it becomes very important to do with less or more compete effectively for limited credit and give reassurance to investors and stakeholders. The markets has become more receptive to increased risk since the financial crisis of 2008. There are low default rates, and the filling of bankruptcy filings of major outlets are down. In addition, there is record assurance in high yield debt and investment grades in cosmetics industries. The initiative of increasing the entire relative importance of funds as a source of liquidity during periods of tight credit facilities reflects the reduction in credit line availability for the cosmetics industry (Newbold & Carlson 2007).

 

Essay 2:

Non-pricing Strategies 

A non-pricing strategy is a strategy where a company uses other means apart from adjusting the price to garner sales. For example, firms often use advertisement to market the products. Advertisement messages often inform and persuade the consumers about the brand, and at the same time inform the consumer why the brand is different from other competitor’s brands. Other strategies include making delivery of the goods to the consumer and offering credit facilities that allow the consumers to pay later for the product. In addition, using product displays in stores to appeal the consumers and offering private brand that are a specific only to a group of people. These private brands are exclusive to some customers that encourage the sales as these consumers enjoy the luxury that comes with having a private brand.

Barriers to Entries

Several non-pricing strategies increase barriers to entry for other companies. These strategies include; customer loyalty to the products offered by the company and having a strong brand identity that puts the company ahead of other competitors in the market.  Australian market being prices sensitive has a low penetration by brands from the international market. There are barriers specific to the ageing sub-segment. High spending on advertisement also has played a major role in determining the barriers to entries

Pricing strategies

Several pricing strategies can employ to increase revenue by the manufacturers. They include reframing the value, bundling commonly bought products together and appealing to utility.

Reframing the skin care value

This is achieved through evaluating how much is gained through regular consumers subscriptions.

Bundling commonly care products together

This involves Putting together commonly bought products and selling to retailers as a package.

Appeal to utility

For most conservative spenders, the message that focuses on utility tends to be more effective. Other liberal, spenders are persuaded by the focus on pleasure.

The current tumultuous global economic and financial climate has affected numerous business ventures around the globe. There is no way a business entity can escape the forces that form the environment that such ventures operate. The major global conditions which heavily impact product business includes geopolitical risk and political conflicts around the world. Therefore, business ventures have to be managed in a way that takes into account the happenings in the global economic and financial environments. Some of the major areas that get affected by the global economic conditions include Investments, compensation of employees, operations, labor practice, output marketing, access to supplies and market expansion. The current global and financial condition has not had a major impact on the employees since the cosmetic industry has not slimmed down on its outlets around the globe. Since Australia is a cultural country, contentious cultural and social issues in other countries are avoided, as a way of avoiding disturbance to the already existing firms. The unpredicted nature of geopolitics around the world has limited the expansion of products into new markets. In normal financial times, the firm would have hired adequate staff in preparation for the expansion. Nevertheless, with the instability, industries does not see the need as most of the intended market segments cannot be penetrated. In addition to the concern over the geopolitics, management of the cosmetic industry has ranked political conflicts and governmental transitions much higher than before (Copeland, 2004).

                                Product Business Cycle

The cycle begins at a lower point and passes over the recovery phase.  A phase of development and wealth follow the recovery phase takes place. After the peak point is achieved, the business undergoes a decreasing phase of decline followed by depression. The cycle then continues with similar vicissitudes.

Prosperity stage

This stage is characterized by expansion of income, output and profits. In addition, there is the high level of output in trade and whole business optimism. Because of the full employment resources, production level is maximum and because of high level of economic activity, it roots a rise in profit and rise in price.

Recession Phase         

This is a turning point from prosperity to depression. In this stage, the economic activities are delayed. When the product demand starts to fall, the future investment and overproduction plans are given up. Output, employment, income, price and profits experience a steady decline in this stage. Firms lose confidence, and pessimism arises. This has a negative effect on investment. In addition, expansion decline and the stock market for the product fall. The joblessness causes a sharp decrease in aggregate and income demand. This business cycle last for a session.

Depression phase

This business stage is considered by fall in volume of trade and output, deflation and decline in consumption and demand. There is underutilization of resources, and the aggregate economic activity is at its lowest point. The economic recession causes decline in the product prices and profits till the economy attains the lowest point.

Recovery Phase

This is a defining moment from depression to expression. In this stage, there is recovery and revival of the economy. When the demand for goods start rising, there is an increase in production, and this causes the tremendous increase of the investments. In the long run, there would be experienced as a steady rise in the employment rate and output income. The firm gains confidence and becomes optimistic. Another added aspect is the increase in investment. Investment simulation brings about revival of the economy. The recovery slowly emerges into prosperity, and in the process, the business cycle is repeated (Elford, 2012).

 

References:

Adam Bąk, A. (2009). Innovative Concepts of Budgeting in the Enterprises. Contemporary Economics, 3(1).

Chytil, Z. and Maslo, L. (2015). The Memory Concepts of Hysteretic Systems in Post-Keynesian Economics. Procedia Economics and Finance, 30, pp.558-565.

Copeland, B. (2004). Alternative Cost-of-Capital Concepts in Regulation. Land Economics, 54(3), p.348.

Duffy, P. (2011). Agricultural Economics Series: Critical Concepts in Economics. American Journal of Agricultural Economics, 93(4), pp.1229-1230.

Elford, G. (2012). Reclaiming two concepts of liberty. Politics, Philosophy & Economics, 12(3), pp.228-246.

Jollands, N. (2006). Concepts of efficiency in ecological economics: Sisyphus and the decision maker. Ecological Economics, 56(3), pp.359-372.

Kirchgaessner, G. (2004). Concepts of Rationality in Environmental Economics. SSRN Electronic Journal.

Marcin W. Staniewski, M. (2007). Chosen Concepts of Human Resources Management. Contemporary Economics, 1(3).

Ruth, M. (2009). Evolutionary concepts in contemporary economics. Ecological Economics, 14(1), pp.57-58.

Saeed, K. (2003). Limits to Growth Concepts in Classical Economics. SSRN Electronic Journal.

Siebenhüner, B. (2002). Debating concepts of human actors in ecological economics—a comment on Faber/Petersen/Schiller. Ecological Economics, 40(3), pp.335-336.

Stanfield, J. (2011). Some Social Economics Concepts for Future Research. Forum for Social Economics, 40(1), pp.7-17.

 

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Economic Principles in Australia- Answer

Economic Principles in Australia
Price discrimination, Environmental Economics, and Economic growth
Name of the student
[Pick the date]
Table of Contents Introduction.. 3 Economic issues. 3
  1. i) Price discrimination in Australia. 3
  2. ii) Debate between Environment and Economics. 5
Policies for Reduction in Carbon Emission in Australia. 6 iii)       Costs of increase in economic growth rate. 7
  1. a) Improvement in technology. 7
  2. b) Improvement in infrastructure. 7
  3. c) Improvement in human resources. 8
Conclusion.. 8 References. 10 Appendices. 12 Appendix 1: Economic Growth and Environmental Factors. 12 Appendix 2: Trade-off between Environmental and Economic Improvement 12 Appendix 3: Mining Industry, Unemployment, and Economic Factors in Australia. 13 Appendix 4: Trend of Carbon Emmision.. 13

Introduction

Economics is a major component of social science. The basic definition of economics is satisfying unlimited human wants with limited resources. This definition implies that consumers’ demand usually does not face any significant constraints, but a supply of resources faces different constraints. To satisfy these constraints the optimisation is required, and it leads to the notion of economics. There are different methods available in economics, which can create some constraint on demand. Then the matching between human wants and scarcity of resources is established. There are three central economic problems. These are- i) what to produce? Ii) How to produce? Iii) For whom to produce? These are the central problems and these questions create the notion of production possibility frontier. This production possibility frontier gives the answer of the first question. What type of good is going to produce in an economy is determined by the production possibility frontier. It employs the notion of the trade-off between two types of goods produced in the economy. Given the state of technologies and resources, there is a limitation of producing both goods in an infinite quantity. Therefore, the society has to choose what type of good production is essential for the economy at present. The second question relates to the technological process to run a production process. What type of technological process would be employed that means, whether the producer will employ labour intensive or capital intensive technological progress to run the production structure? The third question is regarding the distribution aspect of an economy. Who will consume the produced goods and by how much amount these goods will be distributed among the population of an economy is another concerned issue.

Economic issues

i)             Price discrimination in Australia

Price discrimination is an instrument of market power. It is relevant generally in the monopolistic market. Price discrimination means the supplier can charge different prices from different consumers for the same product. Price discrimination is needed for the MNCs to earn more profit (Gillen & Hazledine, 2016). It is quite common that perfectly competitive market is the benchmark in the market structure. It is quite obvious that all MNCs, production units are operated their business under perfectly competitive environment. According to the theory of perfectly competitive market, there is zero profit in the long run (Mills, 2012). It means, no firms, broadly saying, MNCs can’t be able to operate their business in the long run if perfect competition prevails there. It is not a good for an economy in the long run. Therefore, for the sake of economic long-run growth, this price discrimination is gathering the revenue and profit of that MNC. In this context, Australia’s market for the smartphone can be considered (Emang, et al., 2016). It represents the overseas price discrimination of smartphone with respect to Australia’s market. Theoretically, this type of price discrimination is known as third-degree price discrimination. It is taken place when there are submarkets then prices of the particular product become different in different sub-markets (MacDonald, et al., 2015). For example- there are Smartphone companies in all over the world. Third-degree price discrimination is profitable if the elasticity of demand is different in two sub-markets. Here, it is observed that the price of a Smartphone is relatively costlier compared to the price of the same Smartphone in the market of USA, and the UK (Gillen & Hazledine, 2016). This observation can be analysed with the elasticity of demand for smartphones. Australia is a smaller country compare to the USA and its market space is contracted. The Smartphone is becoming a necessary product in the advanced country. Australia is an advanced country, and their market accesses for smartphones are limited. Therefore, the demand for a Smartphone in Australia relatively faces an inelastic demand compare to the USA (Emang, et al., 2016). The Smartphone is also a necessary to the USA, but it is a large country and their accessibility to market is more expanded compare to the Australia. According to the microeconomic theory, a seller has charged the higher price in those submarkets where the demand is inelastic compared to the other submarkets. Inelastic demand means less escaping power of the consumer from the market, therefore, the buyer of that submarket have to pay the higher price for that product (MacDonald, et al., 2015).  The prices of a Smartphone in Australia are higher due to transaction costs and fewer numbers of markets in Australia. Technically, this price discrimination creates a constraint on consumers’ demand. If a consumer is facing the lack of his ability to purchase a well due to high price charged, then he/she can quit from it. Intuitively, it can think that price discrimination is a way to make constraint on consumers’ demand and also a technique to capture the consumer surplus (Mills, 2012). Now, consider the ethical part that is price discrimination good? Price discrimination hurts consumer but at the same time, it creates profit for the firm or companies. It is justified with the notion of the Pareto improvement in economics. If Australia government wants to band this price discrimination from the overseas firms, like, the companies of HP, Microsoft, then it basically hearts the willing consumers of Australia (Gillen & Hazledine, 2016). Now, the necessary condition for third-degree price discrimination to hold is the elasticity condition. It is profitable to charge different prices in different submarkets if the elasticity of demand is different in different submarkets (Mills, 2012). It is profitable to discriminate price in that submarket where the demand is inelastic compared to other submarkets. A higher price is charged in the market with lower elasticity.

ii)            Debate between Environment and Economics

It is observed and proved that there is a trade-off between environmental improvement and economic environment. According to the first central problem of economics, there is the trade-off in everywhere. The trade-off means, to get something, something has to be sacrificed (Marre, et al., 2016). In this context, to get higher economic growth, there is degradation in environmental quality. On the other hand, to protect environmental quality, there is a problem in the economic growth. Again, the notion of optimum decision making is required. Here, the recent Australian economic and environmental factors are taken into consideration (Connell, 2016). Australia’s economic production, increased to 73% over the period 1996-97 to 2013-14, as measured by Gross Value Added (GVA) in chain volume terms. GVA can be used as a proxy of GDP and measured in the different way to capture economic productivity. At the same time, Waste production rose by 163%, energy consumption increased 31% and Greenhouse gas emissions increased by 20% (Vardon, et al., 2016). This empirical evidence shows that both the economic production and environmental degradation have followed an incremental pattern in Australia (REFER APPENDIX 1). This positive relationship reflects the trade-off between economic and environmental improvement, which is reflected by a negatively sloped and concave line segment (REFER APPENDIX 2) (Connell, 2016). It is the most important aspect to the economists to join in the environment versus economic growth related debate. Improvement in economic conditions, reflected by increase in GDP, employment can create some costs to the environment by raising the energy consumption, greenhouse gas emissions etc. (Statistics, 14/4/2016) This proposition is also valid when the mining industry of Australia taken into consideration. The value of mining production as measured by GVA increased steadily between 1996-97 and 2013-14, to finish the period up 102%. The mining industry’s share of total GVA rose from 8% in 1996-97 to 9% in 2013-14 (Shahbaz, et al., 2016). This increase in output is focused by the increase in employment of Australia. Employment is raised up 224% from 80,500 in 1996-97 to 261,000 in 2013-14 (Australian Bureau of Statistics, 2016). The increment in employment means a reduction in unemployment. It is an economic achievement (Cook, et al., 2016). On the other hand, the indicators of environmental pressure for the mining industry reveal another story. For the mining industry, waste intensity recorded the greatest increase in the indicators of environmental pressure, increasing 165%, GHG emissions intensity recorded by the mining industry decreased by 17% for the period 1996-97 to 2012-13, the energy consumed per unit of economic production by the industry was variable between 1996-97 and 2013-14 (Nielson, 2016). The intuitive explanation of this empirical view is- Australia’s mining industry does not create a much more negative impact on the environment. The only increment in waste intensity makes the environment most vulnerable. There is a reduction in greenhouse emissions makes the positive e impact on the environment of Australia (REFER APPENDIX 3). (Australian Bureau of Statistics, 2016) Australia is famous for its natural beauty. Tourism is the major export sector of Australia. Australia government should take care of its greenhouse gas emission. It is known that the major component of   greenhouse gas is the carbon (Shahbaz, et al., 2016). Therefore, the restrictions and policies with respect to greenhouse gas emission are becoming consistent with the policies to reduce carbon emission in Australia. There is an increasing trend in the carbon emission in Australia from 1990-2008 (REFER APPENDIX 4).

Policies for Reduction in Carbon Emission in Australia

The policies for reduction in carbon emission are as follows-
  1. Generate electricity with the help of renewable resources. It reflects the decline in the level of carbon uses in this field.
  2. Absorption of carbon dioxide is achieved through more plantation of trees, forestry etc. It is the development of emission offset mechanisms in Australia, taken as a policy instrument(Australian Bureau of Statistics, 2016).
  3. There are some incentives to the private companies regarding this carbon emission. These are known as Pigovian tax r subsidy given to the companies. These are applicable when the externality of environmental pollution occurs.
  4. There is a necessity of continued funding of research and development activities on the prevention of greenhouse gas emissions (Nielson, 2016).

iii)           Costs of increase in economic growth rate

Economic growth means increment in the national output continuously. It is measured by GDP of a country. Economic growth is required for a country to flourish. Technically saying, economic growth is a necessary condition for a country to grow rapidly. There are some costs beyond the mechanisms of economic growth. These can be stated as follows-

a)    Improvement in technology

Technology is required for a country to promote industries of a country. Industrial growth is required for a country to prosper. Implementation of improved technology is costly and this cost is incurred by the specific production unit (Foster, 2016). Improved technology is a prior condition for maximising output and finally it helps to increase the national output of a country. Australia is an advanced economic country. It is well stated that Australian economy always faces an expansion in the GDP (Wiley, 2016). This GDP expansion is achieved by improvement and adoption of capital-intensive technology. This aspect is the explanation of the second central question, mentioned earlier. Adoption of capital intensive is costly and this cost is incurred due to improvement in Australia’s economic growth (Baumol & Blinder, 2011).

b)   Improvement in infrastructure

Infrastructure is a major component of improving economic growth. Infrastructure includes roads, power station, plants etc. These are very important for the trading of goods and services (Vardon, et al., 2016). This reduction in transportation costs leads to improvement in the GDP of Australia. Government intervention is needed for infrastructural improvement. It reflects the expenditure of government. There is no private entrepreneur who is willing to invest in the infrastructure (Argy, 2013). This is the major cost of the Australia’s government for promoting Australia’s continuous output expansion.

c)    Improvement in human resources

Labour is the prime factor for production. Skilled and efficient labour is very much required for improved economic growth. Australia’s service sector is very improved. The service sector is all about skilled, educated and efficient labour power (Gillen & Hazledine, 2016). Australia’s education, the technical education system must be a part of expenditure for getting higher economic growth. This educational cost sometimes bears by the Australian government and maximum by the households (Dranitsaris & Papadopoulos, 2015). The inefficient labours can’t be able to access improved technological growth. Therefore, educated, skilled labours are the main driving force of a production process and to make labours efficient, proper training and education are needed.

Conclusion

Free market economics means a completely market-based economic structure. The main feature of free market economy is the free movement of demand-supply curves in every market. Free market economics is consistent with the perfectly competitive market and which is characterised by an absence of externality and market power (Bhattarai, 2016). It is the aspect of classical macroeconomic view. This free market economy is completely free from any type of government interference. It is the most efficient form of an economy (Argy & Nevile, 2016). But still, this complete free market economy is not observed in everywhere. A completely free market economy is featured by the motive of profit making of everybody. The social aspect, ethical values are neglected here. In a completely free economy, people are able to earn according to their own ability, skills etc. (Bhattarai, 2016). This type of system is not sustainable in near future, which is explored by Karl Marx. Government interference is needed in an economic structure to promote the aggregate demand of a country (Wells Fargo Research Team, 2016). This view is cited by Keynes when the completely free market economic country the USA had suffered in 1930s great depression. On the other side, the three central economic questions are taken into consideration. The third question is regarding the distributional aspect (Biggs, 2016). It is quite common that without the government interference the proper distribution is difficult. Free market economy is concerned with the notion of the Pareto improvement, which is not a socially desirable phenomenon. It is already mentioned that free market economics is consistent with the perfectly competitive market structure (Stiglitz, 2016). But in reality, a perfectly competitive market is hard to find. There exists some amount of market power in the real market structure. Therefore, the free movement of demand and supply and accordingly equilibrium can’t be finding in reality. In the monopoly market, there is a deviation from the perfectly competitive market structure. The price charged in a monopolistic market is more and quantity is less than the perfectly competitive market (Stiglitz, 2016). The distortion from the perfectly competitive market structure makes the result of the deviation from the completely free market economy to some government intervention system. This discussion also explains the reasons for the non-existence of completely free market economy in reality (Cook, et al., 2016). This whole explanation is the basic history and intuitions of the subject economics. No mathematical models are employed here for any analysis.

References

Argy, V., 2013. International Macroeconomics: Theory and Policy. 6th ed. Abingdon-on-Thames: routledge. Argy, V. E. & Nevile, J., 2016. Inflation and Unemployment: Theory, Experience and Policy Making. 6th ed. Abingdon-on-Thames: Routledge. Australian Bureau of Statistics, 2016. Australian Environmental Economic Accounts, 2016., Sydney: Federal Government of Australia. Baumol, W. J. & Blinder, A. S., 2011. Microeconomics: Principles and Policy. 4th ed. Boston: Cengage Learning. Bhattarai, K., 2016. Unemployment–inflation trade-offs in OECD countries. Economic Modelling, 58(6), pp. 93-103. Biggs, C., 2016. A resource-based view of opportunities to transform Australia’s electricity sector. Journal of Cleaner Production, 123(24), pp. 203-217. Connell, J., 2016. Rural Change in Australia: Population, Economy, Environment. 1st ed. New York: Routledge. Cook, N., Davison, A. & Crabtree, . L., 2016. Housing and Home Unbound: Intersections in Economics, Environment and Politics in Australia. 1st ed. New York: Routledge. Dranitsaris, G. & Papadopoulos, G., 2015. Health Technology Assessment of Cancer Drugs in Canada, the United Kingdom and Australia: Should the United States Take Notice?. Applied Health Economics and Health Policy, 13(2), pp. 291-302. Emang, D., Lundhede, T. H. & Thorsen, B. J., 2016. Funding conservation through use and potentials for price discrimination among scuba divers at Sipadan, Malaysia. Journal of Environmental Management, 182(1), pp. 436-445. Foster, J., 2016. The Australian growth miracle: an evolutionary macroeconomic explanation. Cambridge Journal of Economics, 40(3), pp. 871-894. Gillen, D. & Hazledine, T., 2016. Pricing of Regional Airline Services in Australia and New Zealand, 2011–2015. The Economic Society of Australia, 35(2), pp. 87-98. MacDonald, H. et al., 2015. Rental Discrimination in the Multi-ethnic Metropolis: Evidence from Sydney. Journal of Urban Policy and Research, 34(4), pp. 373-385. Marre, J.-B.et al., 2016. Is economic valuation of ecosystem services useful to decision-makers? Lessons learned from Australian coastal and marine management. Journal of Environmental Management, 178(8), pp. 52-62. Mills, G., 2012. Retail Pricing Strategies and Market Power. 6th ed. Melbourne: Melbourne Univ. Publishing. Nielson, L., 2016. Emissions control policies, Sydney: Parliament of Australia. Shahbaz, M., Bhattacharya, M. & Ahmed, K., 2016. CO2 emissions in Australia: economic and non-economic drivers in the long-run. The Journal of Applied Economics, 48(5), pp. 1-14. Stiglitz, J. E., 2016. How to Restore Equitable and Sustainable Economic Growth in the United States. The American Economic Review, 106(5), pp. 43-47. Vardon, M., Burnett, P. & Dovers, S., 2016. The accounting push and the policy pull: balancing environment and economic decisions. Ecological Economics, 124(5), pp. 145-152. Wells Fargo Research Team, 2016. RBA on Hold as Aussie GDP Growth Slows Slightly. [Online] Available at: http://www.fxstreet.com/analysis/rba-on-hold-as-aussie-gdp-growth-slows-slightly-201609071703 [Accessed 16 September 2016]. Wiley, 2016. Australia’s inflation as a contemporary economic issue. [Online] Available at: http://www.wiley.com/legacy/Australia/PageProofs/ECODU/1_2/c03AustraliasInflationAsAContemporaryEconomicIssue_WEB.pdf [Accessed 16 September 2016].

Appendices

Appendix 1: Economic Growth and Environmental Factors

Appendix 2: Trade-off between Environmental and Economic Improvement

 Appendix 3: Mining Industry, Unemployment, and Economic Factors in Australia

Appendix 4: Trend of Carbon Emmision

Posted by AssignmentHero on

Economic Principles in Australia-Answer

Economic Principles in Australia
Price discrimination, Environmental Economics, and Economic growth
Name of the student
[Pick the date]
Table of Contents Introduction.. 3 Economic issues. 3
  1. i) Price discrimination in Australia. 3
  2. ii) Debate between Environment and Economics. 5
Policies for Reduction in Carbon Emission in Australia. 6 iii)       Costs of increase in economic growth rate. 7
  1. a) Improvement in technology. 7
  2. b) Improvement in infrastructure. 7
  3. c) Improvement in human resources. 8
Conclusion.. 8 References. 10 Appendices. 12 Appendix 1: Economic Growth and Environmental Factors. 12 Appendix 2: Trade-off between Environmental and Economic Improvement 12 Appendix 3: Mining Industry, Unemployment, and Economic Factors in Australia. 13 Appendix 4: Trend of Carbon Emmision.. 13

Introduction

Economics is a major component of social science. The basic definition of economics is satisfying unlimited human wants with limited resources. This definition implies that consumers’ demand usually does not face any significant constraints, but a supply of resources faces different constraints. To satisfy these constraints the optimisation is required, and it leads to the notion of economics. There are different methods available in economics, which can create some constraint on demand. Then the matching between human wants and scarcity of resources is established. There are three central economic problems. These are- i) what to produce? Ii) How to produce? Iii) For whom to produce? These are the central problems and these questions create the notion of production possibility frontier. This production possibility frontier gives the answer of the first question. What type of good is going to produce in an economy is determined by the production possibility frontier. It employs the notion of the trade-off between two types of goods produced in the economy. Given the state of technologies and resources, there is a limitation of producing both goods in an infinite quantity. Therefore, the society has to choose what type of good production is essential for the economy at present. The second question relates to the technological process to run a production process. What type of technological process would be employed that means, whether the producer will employ labour intensive or capital intensive technological progress to run the production structure? The third question is regarding the distribution aspect of an economy. Who will consume the produced goods and by how much amount these goods will be distributed among the population of an economy is another concerned issue.

Economic issues

i)             Price discrimination in Australia

Price discrimination is an instrument of market power. It is relevant generally in the monopolistic market. Price discrimination means the supplier can charge different prices from different consumers for the same product. Price discrimination is needed for the MNCs to earn more profit (Gillen & Hazledine, 2016). It is quite common that perfectly competitive market is the benchmark in the market structure. It is quite obvious that all MNCs, production units are operated their business under perfectly competitive environment. According to the theory of perfectly competitive market, there is zero profit in the long run (Mills, 2012). It means, no firms, broadly saying, MNCs can’t be able to operate their business in the long run if perfect competition prevails there. It is not a good for an economy in the long run. Therefore, for the sake of economic long-run growth, this price discrimination is gathering the revenue and profit of that MNC. In this context, Australia’s market for the smartphone can be considered (Emang, et al., 2016). It represents the overseas price discrimination of smartphone with respect to Australia’s market. Theoretically, this type of price discrimination is known as third-degree price discrimination. It is taken place when there are submarkets then prices of the particular product become different in different sub-markets (MacDonald, et al., 2015). For example- there are Smartphone companies in all over the world. Third-degree price discrimination is profitable if the elasticity of demand is different in two sub-markets. Here, it is observed that the price of a Smartphone is relatively costlier compared to the price of the same Smartphone in the market of USA, and the UK (Gillen & Hazledine, 2016). This observation can be analysed with the elasticity of demand for smartphones. Australia is a smaller country compare to the USA and its market space is contracted. The Smartphone is becoming a necessary product in the advanced country. Australia is an advanced country, and their market accesses for smartphones are limited. Therefore, the demand for a Smartphone in Australia relatively faces an inelastic demand compare to the USA (Emang, et al., 2016). The Smartphone is also a necessary to the USA, but it is a large country and their accessibility to market is more expanded compare to the Australia. According to the microeconomic theory, a seller has charged the higher price in those submarkets where the demand is inelastic compared to the other submarkets. Inelastic demand means less escaping power of the consumer from the market, therefore, the buyer of that submarket have to pay the higher price for that product (MacDonald, et al., 2015).  The prices of a Smartphone in Australia are higher due to transaction costs and fewer numbers of markets in Australia. Technically, this price discrimination creates a constraint on consumers’ demand. If a consumer is facing the lack of his ability to purchase a well due to high price charged, then he/she can quit from it. Intuitively, it can think that price discrimination is a way to make constraint on consumers’ demand and also a technique to capture the consumer surplus (Mills, 2012). Now, consider the ethical part that is price discrimination good? Price discrimination hurts consumer but at the same time, it creates profit for the firm or companies. It is justified with the notion of the Pareto improvement in economics. If Australia government wants to band this price discrimination from the overseas firms, like, the companies of HP, Microsoft, then it basically hearts the willing consumers of Australia (Gillen & Hazledine, 2016). Now, the necessary condition for third-degree price discrimination to hold is the elasticity condition. It is profitable to charge different prices in different submarkets if the elasticity of demand is different in different submarkets (Mills, 2012). It is profitable to discriminate price in that submarket where the demand is inelastic compared to other submarkets. A higher price is charged in the market with lower elasticity.

ii)            Debate between Environment and Economics

It is observed and proved that there is a trade-off between environmental improvement and economic environment. According to the first central problem of economics, there is the trade-off in everywhere. The trade-off means, to get something, something has to be sacrificed (Marre, et al., 2016). In this context, to get higher economic growth, there is degradation in environmental quality. On the other hand, to protect environmental quality, there is a problem in the economic growth. Again, the notion of optimum decision making is required. Here, the recent Australian economic and environmental factors are taken into consideration (Connell, 2016). Australia’s economic production, increased to 73% over the period 1996-97 to 2013-14, as measured by Gross Value Added (GVA) in chain volume terms. GVA can be used as a proxy of GDP and measured in the different way to capture economic productivity. At the same time, Waste production rose by 163%, energy consumption increased 31% and Greenhouse gas emissions increased by 20% (Vardon, et al., 2016). This empirical evidence shows that both the economic production and environmental degradation have followed an incremental pattern in Australia (REFER APPENDIX 1). This positive relationship reflects the trade-off between economic and environmental improvement, which is reflected by a negatively sloped and concave line segment (REFER APPENDIX 2) (Connell, 2016). It is the most important aspect to the economists to join in the environment versus economic growth related debate. Improvement in economic conditions, reflected by increase in GDP, employment can create some costs to the environment by raising the energy consumption, greenhouse gas emissions etc. (Statistics, 14/4/2016) This proposition is also valid when the mining industry of Australia taken into consideration. The value of mining production as measured by GVA increased steadily between 1996-97 and 2013-14, to finish the period up 102%. The mining industry’s share of total GVA rose from 8% in 1996-97 to 9% in 2013-14 (Shahbaz, et al., 2016). This increase in output is focused by the increase in employment of Australia. Employment is raised up 224% from 80,500 in 1996-97 to 261,000 in 2013-14 (Australian Bureau of Statistics, 2016). The increment in employment means a reduction in unemployment. It is an economic achievement (Cook, et al., 2016). On the other hand, the indicators of environmental pressure for the mining industry reveal another story. For the mining industry, waste intensity recorded the greatest increase in the indicators of environmental pressure, increasing 165%, GHG emissions intensity recorded by the mining industry decreased by 17% for the period 1996-97 to 2012-13, the energy consumed per unit of economic production by the industry was variable between 1996-97 and 2013-14 (Nielson, 2016). The intuitive explanation of this empirical view is- Australia’s mining industry does not create a much more negative impact on the environment. The only increment in waste intensity makes the environment most vulnerable. There is a reduction in greenhouse emissions makes the positive e impact on the environment of Australia (REFER APPENDIX 3). (Australian Bureau of Statistics, 2016) Australia is famous for its natural beauty. Tourism is the major export sector of Australia. Australia government should take care of its greenhouse gas emission. It is known that the major component of   greenhouse gas is the carbon (Shahbaz, et al., 2016). Therefore, the restrictions and policies with respect to greenhouse gas emission are becoming consistent with the policies to reduce carbon emission in Australia. There is an increasing trend in the carbon emission in Australia from 1990-2008 (REFER APPENDIX 4).

Policies for Reduction in Carbon Emission in Australia

The policies for reduction in carbon emission are as follows-
  1. Generate electricity with the help of renewable resources. It reflects the decline in the level of carbon uses in this field.
  2. Absorption of carbon dioxide is achieved through more plantation of trees, forestry etc. It is the development of emission offset mechanisms in Australia, taken as a policy instrument(Australian Bureau of Statistics, 2016).
  3. There are some incentives to the private companies regarding this carbon emission. These are known as Pigovian tax r subsidy given to the companies. These are applicable when the externality of environmental pollution occurs.
  4. There is a necessity of continued funding of research and development activities on the prevention of greenhouse gas emissions (Nielson, 2016).

iii)           Costs of increase in economic growth rate

Economic growth means increment in the national output continuously. It is measured by GDP of a country. Economic growth is required for a country to flourish. Technically saying, economic growth is a necessary condition for a country to grow rapidly. There are some costs beyond the mechanisms of economic growth. These can be stated as follows-

a)    Improvement in technology

Technology is required for a country to promote industries of a country. Industrial growth is required for a country to prosper. Implementation of improved technology is costly and this cost is incurred by the specific production unit (Foster, 2016). Improved technology is a prior condition for maximising output and finally it helps to increase the national output of a country. Australia is an advanced economic country. It is well stated that Australian economy always faces an expansion in the GDP (Wiley, 2016). This GDP expansion is achieved by improvement and adoption of capital-intensive technology. This aspect is the explanation of the second central question, mentioned earlier. Adoption of capital intensive is costly and this cost is incurred due to improvement in Australia’s economic growth (Baumol & Blinder, 2011).

b)   Improvement in infrastructure

Infrastructure is a major component of improving economic growth. Infrastructure includes roads, power station, plants etc. These are very important for the trading of goods and services (Vardon, et al., 2016). This reduction in transportation costs leads to improvement in the GDP of Australia. Government intervention is needed for infrastructural improvement. It reflects the expenditure of government. There is no private entrepreneur who is willing to invest in the infrastructure (Argy, 2013). This is the major cost of the Australia’s government for promoting Australia’s continuous output expansion.

c)    Improvement in human resources

Labour is the prime factor for production. Skilled and efficient labour is very much required for improved economic growth. Australia’s service sector is very improved. The service sector is all about skilled, educated and efficient labour power (Gillen & Hazledine, 2016). Australia’s education, the technical education system must be a part of expenditure for getting higher economic growth. This educational cost sometimes bears by the Australian government and maximum by the households (Dranitsaris & Papadopoulos, 2015). The inefficient labours can’t be able to access improved technological growth. Therefore, educated, skilled labours are the main driving force of a production process and to make labours efficient, proper training and education are needed.

Conclusion

Free market economics means a completely market-based economic structure. The main feature of free market economy is the free movement of demand-supply curves in every market. Free market economics is consistent with the perfectly competitive market and which is characterised by an absence of externality and market power (Bhattarai, 2016). It is the aspect of classical macroeconomic view. This free market economy is completely free from any type of government interference. It is the most efficient form of an economy (Argy & Nevile, 2016). But still, this complete free market economy is not observed in everywhere. A completely free market economy is featured by the motive of profit making of everybody. The social aspect, ethical values are neglected here. In a completely free economy, people are able to earn according to their own ability, skills etc. (Bhattarai, 2016). This type of system is not sustainable in near future, which is explored by Karl Marx. Government interference is needed in an economic structure to promote the aggregate demand of a country (Wells Fargo Research Team, 2016). This view is cited by Keynes when the completely free market economic country the USA had suffered in 1930s great depression. On the other side, the three central economic questions are taken into consideration. The third question is regarding the distributional aspect (Biggs, 2016). It is quite common that without the government interference the proper distribution is difficult. Free market economy is concerned with the notion of the Pareto improvement, which is not a socially desirable phenomenon. It is already mentioned that free market economics is consistent with the perfectly competitive market structure (Stiglitz, 2016). But in reality, a perfectly competitive market is hard to find. There exists some amount of market power in the real market structure. Therefore, the free movement of demand and supply and accordingly equilibrium can’t be finding in reality. In the monopoly market, there is a deviation from the perfectly competitive market structure. The price charged in a monopolistic market is more and quantity is less than the perfectly competitive market (Stiglitz, 2016). The distortion from the perfectly competitive market structure makes the result of the deviation from the completely free market economy to some government intervention system. This discussion also explains the reasons for the non-existence of completely free market economy in reality (Cook, et al., 2016). This whole explanation is the basic history and intuitions of the subject economics. No mathematical models are employed here for any analysis.

References

Argy, V., 2013. International Macroeconomics: Theory and Policy. 6th ed. Abingdon-on-Thames: routledge. Argy, V. E. & Nevile, J., 2016. Inflation and Unemployment: Theory, Experience and Policy Making. 6th ed. Abingdon-on-Thames: Routledge. Australian Bureau of Statistics, 2016. Australian Environmental Economic Accounts, 2016., Sydney: Federal Government of Australia. Baumol, W. J. & Blinder, A. S., 2011. Microeconomics: Principles and Policy. 4th ed. Boston: Cengage Learning. Bhattarai, K., 2016. Unemployment–inflation trade-offs in OECD countries. Economic Modelling, 58(6), pp. 93-103. Biggs, C., 2016. A resource-based view of opportunities to transform Australia’s electricity sector. Journal of Cleaner Production, 123(24), pp. 203-217. Connell, J., 2016. Rural Change in Australia: Population, Economy, Environment. 1st ed. New York: Routledge. Cook, N., Davison, A. & Crabtree, . L., 2016. Housing and Home Unbound: Intersections in Economics, Environment and Politics in Australia. 1st ed. New York: Routledge. Dranitsaris, G. & Papadopoulos, G., 2015. Health Technology Assessment of Cancer Drugs in Canada, the United Kingdom and Australia: Should the United States Take Notice?. Applied Health Economics and Health Policy, 13(2), pp. 291-302. Emang, D., Lundhede, T. H. & Thorsen, B. J., 2016. Funding conservation through use and potentials for price discrimination among scuba divers at Sipadan, Malaysia. Journal of Environmental Management, 182(1), pp. 436-445. Foster, J., 2016. The Australian growth miracle: an evolutionary macroeconomic explanation. Cambridge Journal of Economics, 40(3), pp. 871-894. Gillen, D. & Hazledine, T., 2016. Pricing of Regional Airline Services in Australia and New Zealand, 2011–2015. The Economic Society of Australia, 35(2), pp. 87-98. MacDonald, H. et al., 2015. Rental Discrimination in the Multi-ethnic Metropolis: Evidence from Sydney. Journal of Urban Policy and Research, 34(4), pp. 373-385. Marre, J.-B.et al., 2016. Is economic valuation of ecosystem services useful to decision-makers? Lessons learned from Australian coastal and marine management. Journal of Environmental Management, 178(8), pp. 52-62. Mills, G., 2012. Retail Pricing Strategies and Market Power. 6th ed. Melbourne: Melbourne Univ. Publishing. Nielson, L., 2016. Emissions control policies, Sydney: Parliament of Australia. Shahbaz, M., Bhattacharya, M. & Ahmed, K., 2016. CO2 emissions in Australia: economic and non-economic drivers in the long-run. The Journal of Applied Economics, 48(5), pp. 1-14. Stiglitz, J. E., 2016. How to Restore Equitable and Sustainable Economic Growth in the United States. The American Economic Review, 106(5), pp. 43-47. Vardon, M., Burnett, P. & Dovers, S., 2016. The accounting push and the policy pull: balancing environment and economic decisions. Ecological Economics, 124(5), pp. 145-152. Wells Fargo Research Team, 2016. RBA on Hold as Aussie GDP Growth Slows Slightly. [Online] Available at: http://www.fxstreet.com/analysis/rba-on-hold-as-aussie-gdp-growth-slows-slightly-201609071703 [Accessed 16 September 2016]. Wiley, 2016. Australia’s inflation as a contemporary economic issue. [Online] Available at: http://www.wiley.com/legacy/Australia/PageProofs/ECODU/1_2/c03AustraliasInflationAsAContemporaryEconomicIssue_WEB.pdf [Accessed 16 September 2016].

Appendices

Appendix 1: Economic Growth and Environmental Factors

Appendix 2: Trade-off between Environmental and Economic Improvement

 Appendix 3: Mining Industry, Unemployment, and Economic Factors in Australia

Appendix 4: Trend of Carbon Emmision

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Essay: Transportation and How It Has Helped the Economy-Answer

 

Essay: Transportation and How It Has Helped the Economy

 

Transportation intensively uses infrastructures of an economy. Therefore, the transportation has vital contribution towards economy. Moreover, it is a common tool used for development. The importance of transportation is increased in context of global economy where mobility of goods, people, and information is intensively related with economic development. It is apparent that there is a strong positive relationship between quality and quantity of transport infrastructure and level of economic development (Rodrigue & Notteboom, 2017).

The contribution of transportation towards economic development has five key aspects. The first aspect is, it supports clusters and agglomerations. First, the problem of slowed growth due to limited downtown space can be overcome through effectively planned transportation. Second, effective transportation planning by supporting closer proximity of businesses and industries sustains the industries and the businesses. Third, time distance between different suburbs is reduced by transportation that improves labour force efficiency (Dowell, 2017).

Second main aspect of the contribution of the transportation towards economic development is it increases productivity. The productivity eventually increases when there is improvement in accessibility of businesses and people to reach goods, services, jobs, and activities. It would be due to infrastructure enhancements and reduced travel time. Because, improved travel time brings labour market closer to the place of work (Dowell, 2017).

Third, transportation enhances labour force and job accessibility. Better transportation facilities result in larger available pool of employees for job market. For example, a new commuter or transit rail can make it possible for labour force to reach a job that was previously inaccessible. The improvement in transportation can decrease travel time. Overall, there would be better match between employers and employees with availability of better job and employees skills (Dowell, 2017).

Forth, transportation opens new markets for businesses. The transportation not only decrease time between commuters but, also shifts business sectors. A multi-modal transportation facility has ability to open opportunities for businesses searching for new markets by supporting manufacturing plants and other corporate needs. A new metro line, subway, or rail has the ability to attract development of both commercial and residential by providing options to spend and earn money (Dowell, 2017).

Fifth, transportation improves supply chain efficiency. It has been stated earlier that transportation is a source of clustering businesses and industries. When businesses and industries are clustered, it becomes easier and quicker for the businesses to reach to their customers and suppliers. It improves delivery scheduling and freight logistics that boosts economic activities and ultimately improves economic development (Dowell, 2017).

Even though, each and every transportation project does not has even capability to positively drive economic development, however, well-planned transportation projects are considered as strategic drivers in economic development. Overall, transportation has a number of positive implications for economic development like job creation, economic growth, the economies of scale, and trade facilitation. Transportation has key contribution towards economic development. The importance of transportation in economic development can be understand from this fact that no matter how much funds are available for transportation, transportation needs exceed the available funding (Dowell, 2017). It can be concluded that strategically well-planned transportation has played key role in economic development.

 

References

Dowell, P. (2017, 04 05). THE TOP FIVE WAYS TRANSPORTATION IMPACTS ECONOMIC DEVELOPMENT. Retrieved 06 21, 2018, from csengineermag.com: https://csengineermag.com/article/top-five-ways-transportation-impacts-economic-development/

Rodrigue, D. J.-P., & Notteboom, D. T. (2017). The Economic Importance of Transportation. Retrieved 06 21, 2018, from transportgeography.org: https://transportgeography.org/?page_id=5260

 

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CAGE Framework (E-Learning Exercise)

 CAGE Framework (E-Learning Exercise)

[Name]

[Institution]

[Date of submission]

[Instructor]

Contents

CAGE Framework (e-learning exercise) 3

Video Analysis. 3

Practical Application: 4

Bibliography/References. 5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CAGE Framework (e-learning exercise)

Video Analysis

CAGE is a framework that explains the volume of trade between the two countries involved based on a few dimensions that are encompassed in the acronym CAGE. This framework is developed by Pankaj Ghemawat who is a renowned global strategist and an economist. According to this framework, the general relations between the counties, specifically trade interactions, are affected by some dimensions in both a positive and a negative way. These dimensions are cultural, administrative/political, geographical and economic, thus the acronym “CAGE” used to describe this framework. The fundamental idea to this is that the relations between the countries including the trade interactions are either encouraged by the similarities in these CAGE factors, or are set back due to the differences in these factors. According to Pankaj, the countries that have similar features such as a common language, same border, are a part of some trade arrangement, share common culture are likely to have trade that is 10-15 times larger than most normal trade interactions between countries that do not have such common features. Now such a framework not only suggests that the results are statistically significant, but we may find that the results are somewhat economically meaningful too. In the video, Mr. Pankaj explains this phenomenon by the example of America’s trade with Canada. Now even though Canada’s economy is just about the 10th largest economy in the world, yet it enjoys the status of being USA’s largest trade partner because of some CAGE commonalities such as being closer to USA than other countries such as Mexico etc.

Practical Application:

The CAGE framework has many real world applications that can be applied / observed. Let us take the case of Pak-China trade over the years as our example. Both the countries have common CAGE commonalities as they share a common border and have entered many mutual trade agreements. Due to this, the volume of trade between the two countries has been significantly large. Many events such as status of being the MFN (Most Favored Nation) granted to China by Pakistan in 1963, the signing of a Preferential Trade Agreement (PTA) in 2002, and the Free Trade Agreement (FTA) in 2007 between the two countries has led to major trade and development projects such as the recent Mega plan of the Pak-China Economic Corridor, has ensured that both the countries enjoy great trade and diplomatic relations (Memon, 2015). Now from a more industrial perspective, we may see its application from another angle. Let us suppose we take example of sports channels. Now if Sky Sports UK was to expand its coverage internationally, based on CAGE analysis it is least likely to expand its coverage to Turkey since very few people are able to speak and understand English there, and hence are less likely to subscribe to its broadcast. Similarly the Al-Jazeera channel will not expand its coverage to the USA because vast majority of the population cannot understand or speak Arabic. So a more rational and efficient line of action for Sky Sports UK will be to expand its coverage to the countries where many people are able to understand English, thus are more likely to subscribe to its broadcasts. Similarly, Al Jazeera would like to expand itself to the Arab Countries where Arabic is widely understood thus having a high chance of subscription. Thus we see here how a CAGE characteristic such as a common language may affect the actions of an enterprise (Dunung, 2011). Similar argument and analysis can be made for other CAGE characteristics too.

Bibliography/References

 

Dunung, M. C. (2011). International Business: Opportunities and Challenges in a Flattening World. Flat World Knowledge. Retrieved from

Ghemawat, P. (n.d.). CAGE framework to evaluate international trade opportunities. Retrieved from Youtube: https://www.youtube.com/watch?v=7FpUJaG7uMk

Memon, A. Q. (2015, August 24). Pak-China trade: Importance of negotiating the FTA. Retrieved from The Express Tribune:

 

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INTERMEDIATE MACROECONOMICS- Question

INTERMEDIATE MACROECONOMICS I

(Economic Fluctuations)

Problem Set No. 1

(Due date: January 19, 2015)

Section I: Analytical Problems (40 Marks)

Please read the piece, \Premier Wynne says … “, published in The Globe

and Mail on January 5, 2015 as attached at the last page herein. Answer the following questions in view of the above piece, and the Aggregate demand and aggregate supply model we discussed in class.

  1. Premier Kathleen Wynne says Ontario is ready to shield Canada from

the economic tsunami caused by declining oil prices and sinking dollar.

Explain why Canada should expect a large economic loss caused by the

declining oil price and sinking dollar? [10 marks]

  1. Why does Premier Wynne expect a large economic gain from the cheap

gasoline and weakening loonie? [10 marks]

  1. Using the AD 􀀀 AS model, assess the validity of RBC’s claim that the

fall in oil prices will actually help Canada overall. [10 marks]

  1. RBC economists expect investment in the oil and gas exploration and

development industry to fall by three percent this year. What would

be, if any, the e_ects of such a reduction in investment on the Canadian

economy? [10 marks]

Section II: Numerical Problems (60 Marks)

Consider an economy described by the following AD and AS model:

AD : M=P = 0.05Y ;                                                                              (1)

LRAS : Y = 1,000  and                                                                         (2)

SRAS : P = 25;                                                                                      (3)

where, M is the money supply, P is the price level, and Y is real GDP.

  1. Provide an economic interpretation of the coefficient of Y in the aggregate demand equation (1). Determine the velocity of money implied by the aggregate demand equation. [10 marks]
  2. Suppose that central bank of the country sets the money supply at 1,000

so that M = 1,000. Determine the short-run and long-run equilibrium

values of P and Y . [10 marks]

  1. Now, suppose a favourable supply shock such as the decline in oil price,

reduces costs and prices so that new short-run aggregate supply function

is:

SRASnew : P = 10:                                                                     (4)

Determine the short-run and long-run effects of the favourable supply

shock on the equilibrium P and Y . [10 marks]

  1. How would your answers to part c change, if the central bank chooses to

accommodate the supply shock? What are the drawbacks, if any, of such

a decision? Please be specific. [10 marks]

  1. Now, suppose LRAS changes to:

LRASnew :  Y = 2, 000:                                                                (5)

  1. Explain why might the long-run aggregate supply increase. [10

marks]

  1. Determine the effects of the increase in LRAS on equilibrium P and

Y . [10 marks]

January 5, 2015

Premier Wynne says Ontario ready to play leading role in economic growth

By ADRIAN MORROW and JEFFREY JONES

Province’s manufacturing sector poised to gain on cheap gas, weak dollar while energy producers suffer

Premier Kathleen Wynne says Ontario is ready to shield Canada from the economic tsunami caused by declining oil prices and a sinking dollar.

While petroleum-dependent provinces such as Alberta are taking a financial walloping, Ontario’s manufacturing heartland is poised to take advantage of cheap gasoline and a weak loonie this year.

“Ontario’s economy can be a buffer,” Ms. Wynne said in an interview at her Queen’s Park office. “We have a diverse economy and it can be a buffer, in a time like this, against some of that volatility.”

It is a sudden shift in national fortunes. In recent years, oil-rich Alberta, Saskatchewan and Newfoundland have boomed, while Ontario has been sluggish. Now, Ms. Wynne’s province is set to lead the country in economic growth.

“I don’t wish for low oil prices and a low dollar for Alberta,” she said. “But at the same time, we want our manufacturing sector to rebound. So if that [low oil price] helps, then that’s a good thing.”

A new report from the Royal Bank of Canada backs up Ms. Wynne’s optimism. RBC estimates the fall in oil prices will actually help Canada overall.

Cheaper petroleum will boost household purchasing power in the United States by $86-billion, the report projects. Combined with a lower dollar, this should increase Canada’s exports to its largest trading partner. What’s more, Canadian consumers are reaping rewards from sharply lower prices at the fuel pump, saving an estimated $8.9-billion this year.

Even if they spend just half that money, it will pour billions into the economy.

These benefits are expected to more than offset a projected $2.1-billion drop in investment by energy companies this year.

“If you get consumers responding to these lower gasoline prices and you get exporters managing to respond to the strength in the U.S. economy plus the weaker Canadian dollar, it can provide a significant offset to what we’re likely going to see on the investment side,” said Paul Ferley, RBC’s assistant chief economist. “Where’s the offset going to play out? Well, certainly the manufacturing sector to the extent that they see improvement in terms of exports to the U.S., benefits from both the stronger U.S. economy and the weakening of the Canadian dollar.”

Over the longer term, Ms. Wynne is prepared to help Alberta get more of its oil to market. Last month, she said Ontario would not consider greenhouse gas emissions from the oil sands when deciding whether to support the proposed Energy East pipeline, which would carry crude from Alberta and Saskatchewan to Eastern Canadian refineries and export terminals.

She told The Globe and Mail that climate-change talks should be done separately – as part of a broader Canadian Energy Strategy to be negotiated this year – from discussions over Energy East.

“I’ve always separated those things. I’ve always talked about the need for a Canadian Energy Strategy, from the time I came into this office,” she said. “At the same time, I’ve talked about the Energy East project, I’ve talked about that pipeline project as one that we needed to do right but that we needed to work with Alberta.”

“Alberta’s well-being and Ontario’s well-being are interconnected, so we want everyone to be doing well,” she said.

Alberta will need all the support it can get if oil prices continue their slide.

RBC economists expect investment in the oil and gas exploration and development industry to fall by three per cent this year, from an estimated total of $71.6-billion in 2014, assuming West Texas Intermediate oil averages $65 a barrel. WTI crude fell 58 cents to settle at $52.69 a barrel Friday.

Numerous energy companies have already announced sharply lower capital spending for the year – with some already cutting budgets more than once – due to crude prices that fell 46 per cent through 2014. Longer-term oil sands and offshore projects were among the first to be delayed.

Investment in oil and gas and related industries, such as pipelines and oil-field services, has amounted to a third of the business outlay in Canada. However, that was less than 5 per cent of total Canadian GDP, as all business investment makes up 13 per cent of GDP, according to the report. A 3-per-cent drop in energy spending would cut GDP growth by 0.1 percentage points. A 10-per-cent drop would still mean a modest 0.3-percentage-point hit to GDP growth.

The Globe and Mail: Premier Wynne says Ontario ready to play leading ro…

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