3879558
Description
Mind Map by Nikaylasia, updated more than 1 year ago
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Created by Nikaylasia
over 8 years ago
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Microeconomic Reform
- Definitions
- capital widening
^labour force >
^capital equipment
- capital deepening
^capital:labour ratio
- disembodied change
intangible e.g.
management +
education
- embodied change
tech e.g. NBN
- capital widening
^labour force >
^capital equipment
- MER: gov actions which \/ / remove barriers to efficient resource
allocation to enable gov to achieve macro objectives
- Structural Change -
ongoing process of C
+ distribution
patterns in economy,
occurs naturally over
time
- e.g. tech
change +
growth of east
asian markets
like CHINA
- MER ^rate + effectiveness of
structural change. Aus is open
trade economy - must meet
tests of i/n markets, offering
\/price, ^quality goods to dev
export+import competing
industries
- e.g. tech
change +
growth of east
asian markets
like CHINA
- Producivity -
relationship b/w inputs
needed to produce amt
of output/time
- labour (output/labour input)/time
- capital (output/capital input)/time
- multifactor (output/multifactor input)/time
- labour (output/labour input)/time
- Efficiency
- technical - producing output w minimum average cost
- allocative - firms charging prices to
reflect marginal cost of prodn >
resources allocated to reflect customer
preferences
- dynamic - ^adaptability to changing econ conditions
using latest cost\/ tech to meet consumer preferences
- technical - producing output w minimum average cost
- Overseas Market
- trade liberisation -
\/tariffs + subsidies
- FTA e.g. China, SKorea
- freedom i'n m'ment
capital e.g.FI
- manufacturing idea
> comparative adv
- trade liberisation -
\/tariffs + subsidies
- Imact on economy
- PRICE STABILITY - \/avg costs of prodn+comp markets > \/prices
- FULL EMPLOYMENT - ^growth
rates>^labour demand+\/cyclical
unemployment
- HOWEVER
reform>structural
unemployment>re-training
required to avoid long term
unemployment
- HOWEVER
reform>structural
unemployment>re-training
required to avoid long term
unemployment
- ECON GROWTH
(inflation less) bc
^productive capacity
- EQUITABLE Y
DISTRIBUTION -
welfare>work _ ^econ
growth>^gov fin ability to
provide support to low Y
earners
- EXTERNAL STABILITY -
consistent \/inflation
rate>^i'n comp + ^capacity >
^X volumes
- PRICE STABILITY - \/avg costs of prodn+comp markets > \/prices
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