Free Samples
ECON1010 Introductory Microeconomics
.cms-body-content table{width:100%!important;} #subhidecontent{ position: relative;
overflow-x: auto;
width: 100%;}
ECON1010 Introductory Microeconomics
0 Download5 Pages / 1,188 Words
Course Code: ECON1010
University: The University Of Queensland
MyAssignmentHelp.com is not sponsored or endorsed by this college or university
Country: Australia
Questions:
1.In this question you must analyse the effects of the following economic cases in the loanable funds market where we have the real interest rate on the vertical axis and the quantity of loanable funds on the horizontal axis. Start from point A in the figure below in each case. Demonstrate the effect using the figure and explain what happens to the new equilibrium real interest rate and the equilibrium quantity of loanable funds. Your explanation must include the process of reaching the new equilibrium.
a)The effect of the federal budget surplus in Australia that occurred from the late 1990s to 2007?
b)Australian businesses become very optimistic about the future course of the economy Without using the figure. Why do you think the market equilibrium in the loanable funds market maximises efficiency?
Answer:
I disagree with the statement mentioned above because the current statistics of Australian Bureau indicate that the revenue of the government by September 4, 2018, exceeded the expenses by around $17,525 million. Therefore, it is false to say that Australia is less than half as wealthy as the government statistics. In addition, the statistics also indicate an average earning of $1,586.20 every week in Australia. To indicate that the statistics of the Australia government are correct, the level of the unemployed people is at a low rate of 5.4% (Herzer et al, 2013).
b). I agree with the above statement which indicates that a deposit in the bank account is considered as an asset and a cars loan is also considered as a liability. In this case, it is noted that in case an individual sells a car and fails to get the expected or required money to cover up the loan that someone owes, it is therefore termed as a liability. Therefore, if the car is not worth the amount that someone owes it then the amount becomes a liability. On the other hand, if a bank deposit is considered as an asset by banks because it is something that a company or person owns that provides future benefits to the bank. However, the cash deposit in banks can either be an asset or liability according to its type (Herzer et al, 2013).
I disagree with the above statement which states that the elimination of hundreds of thousand jobs in Australia in 2010 led to the increase in unemployment. In this case, it is noted that the removal or elimination of jobs didn’t create any impact on the jobs in Australia. As compared with the statistical rate of 2009 and 2018, it is clear that in the financial year 2008-2009 the rate of unemployment was at 6.6% as compared to 5.1% in 2018. Therefore, the removal of most jobs in Australia did not affect the rate of employment. According to the research by Bouman & John (2011), the rise in employment in Australia has been as a result of many part-time jobs which range from 27,500 to 3.306m and the rise of full-time jobs form 18,400 – 7.795m (Bouman & John, 2011).
Number two
The 5 countries with the highest growth rate CO2emmissions include South Korea, China, Bangladesh, Argentina, and South Africa (Bouman & John, 2011).
The five countries with the highest economic growth rate include; Nigeria, Russia, Bangladesh, China, and South Korea (Bouman & John, 2011).
In this case, it is not true that high economic growth rate does not necessarily lead to high emissions of CO2 because; some states have a regulation of emissions of fossils by industries. Therefore, it is not a guarantee that if the economic state of the nation grows then it has to lead to the high emission of Co2. In addition, there are some countries which have grown not because of the industrial sector part also other sectors such as agriculture. As evidenced by the statistics listed, some states have a high economic growth but their emission of Co2 is less compared to some countries with a low economic growth. For example, Nigeria has an economic growth of 6.07 and Co2 emission of-2.46 but South Africa has an economic growth os 2.39 and Co2 emission of 0.80. Therefore it indicates that some countries high economic growth do not lead to high emotions of Co2 (Blanchard & Olivier, 2017).
This indicates the effect of the federal budget surplus in Australia that occurred from late 1990-2007. In addition, the graph indicates that the amount of government spending could be reduced by fiscal policies so as to have a great influence on the national economy. Therefore, the graph indicates that the government surplus budget greatly affected the aggregate supply (Blanchard & Olivier, 2017).
This indicates that the businesses in Australia become very much optimistic regarding the future course of the economy. In this case, the graph illustrates that the prices of some products could experience volatile prices as a result of economic changes such as demand and supply. Therefore, it’s the responsibility of the government to regulate the average prices so as to avoid short-term price fluctuations (Herzer et al, 2013).
Market equilibrium in the loanable funds market maximizes efficiency as a result of the relationship between the interest rate and the quantity of the demanded loanable funds. In this case, the loanable funds are made up of the investments that are done in the business that helps to maintain the level of demand (Herzer et al, 2013).
In order to solve the problem of the future housing affordability for the young generation in Australia, various issues must be considered such as; removal of all the minimum limits implemented on the apartment or house size. In this case, the government of Australia should make sure that they allow people to buy as small houses they wish too which they can be in the position to afford. In addition, Australian banks should stop preferring big houses whenever issuing out loans so as to live people in the market. To note, even if the house is too small, banks in Australia should approve it for loans so as to increase its market opportunities.
Direct grants from the government to young homes in Australia should be offered so as to increases the value of houses constructed. In this case, it is believed that if the Australian government offers grants to the young homeowners they can be in the position to also enter the market. Therefore, a priority should not be given to those individuals who buy only first homes so as to avoid imbalance. However, it is also too bad to offer grants to people because they also lead to higher prices. The Australian government should therefore not offer grants to any kind of house but only the new houses which boast the supply of housing and also adds demand for construction companies (Blanchard & Olivier, 2011)
The government of Australia should review their planning laws that are not in favor of changing the demand for houses. The review of the existing planning laws and policies will pave way for the enaction of laws that suit the current dynamics in the Australian economy. In this case, it should be noted that planning laws play an important role in the development of the housing sector in most states. Hence unfavourable policies affects the overall development of the housing sector both in urban and rural areas.Therefore, the Australian government should move with the changing plans so as to ensure that all various categories of people are looked at (Blanchard & Olivier, 2011). The current laws have a number of loop holes
References
Blanchard, Olivier. (2011). Macroeconomics Updated (5th ed.). Englewood Cliffs: Prentice Hall. ISBN 978-0-13-215986-9.
Bouman, John. (2011). Principles of Macroeconomics – free fully comprehensive Principles of Microeconomics and Macroeconomics texts. Columbia, Maryland.
Blanchard, Olivier. (2017), The need for different classes of macroeconomic models, blog post, Jan. 12, 2017, Peterson Institute for International Economics.
Herzer, Dierk; Vollmer, Sebastian. (2013). “Rising top incomes do not raise the tide”. Journal of Policy Modeling. 35(4): 504–19. doi:10.1016/j.jpolmod.2013.02.011unfavourable to specific population sects.
Free Membership to World’s Largest Sample Bank
To View this & another 50000+ free samples. Please put
your valid email id.
Yes, alert me for offers and important updates
Submit
Download Sample Now
Earn back the money you have spent on the downloaded sample by uploading a unique assignment/study material/research material you have. After we assess the authenticity of the uploaded content, you will get 100% money back in your wallet within 7 days.
UploadUnique Document
DocumentUnder Evaluation
Get Moneyinto Your Wallet
Total 5 pages
PAY 3 USD TO DOWNLOAD
*The content must not be available online or in our existing Database to qualify as
unique.
Cite This Work
To export a reference to this article please select a referencing stye below:
APA
MLA
Harvard
OSCOLA
Vancouver
My Assignment Help. (2021). ECON1010 Introductory Microeconomics. Retrieved from https://myassignmenthelp.com/free-samples/econ1010-introductory-microeconomics/loanable-funds.html.
“ECON1010 Introductory Microeconomics.” My Assignment Help, 2021, https://myassignmenthelp.com/free-samples/econ1010-introductory-microeconomics/loanable-funds.html.
My Assignment Help (2021) ECON1010 Introductory Microeconomics [Online]. Available from: https://myassignmenthelp.com/free-samples/econ1010-introductory-microeconomics/loanable-funds.html[Accessed 18 December 2021].
My Assignment Help. ‘ECON1010 Introductory Microeconomics’ (My Assignment Help, 2021)
My Assignment Help. ECON1010 Introductory Microeconomics [Internet]. My Assignment Help. 2021 [cited 18 December 2021]. Available from: https://myassignmenthelp.com/free-samples/econ1010-introductory-microeconomics/loanable-funds.html.
×
.close{position: absolute;right: 5px;z-index: 999;opacity: 1;color: #ff8b00;}
×
Thank you for your interest
The respective sample has been mail to your register email id
×
CONGRATS!
$20 Credited
successfully in your wallet.
* $5 to be used on order value more than $50. Valid for
only 1
month.
Account created successfully!
We have sent login details on your registered email.
User:
Password:
We have brought a unique essay typer that can help you get tool that can help you get urgent essay help in minutes. Now essays with tight deadlines would not be a problem. Our essay typer tool resources information from millions of pages and provides you help with essays on practically any essay topic, or any subjects. Even the referencing is done aptly. You just need to enter the topic in the text box of our essay typer and get an instant essays just by randmly pressing any button on the keyboard. Use the tool now.
Latest Management Samples
div#loaddata .card img {max-width: 100%;
}
MPM755 Building Success In Commerce
Download :
0 | Pages :
9
Course Code: MPM755
University: Deakin University
MyAssignmentHelp.com is not sponsored or endorsed by this college or university
Country: Australia
Answers:
Introduction
The process of developing a successful business entity requires a multidimensional analysis of several factors that relate to the internal and external environment in commerce. The areas covered in this current unit are essential in transforming the business perspective regarding the key commerce factors such as ethics, technology, culture, entrepreneurship, leadership, culture, and globalization (Nzelibe, 1996; Barza, 2…
Read
More
SNM660 Evidence Based Practice
Download :
0 | Pages :
8
Course Code: SNM660
University: The University Of Sheffield
MyAssignmentHelp.com is not sponsored or endorsed by this college or university
Country: United Kingdom
Answers:
Critical reflection on the objective, design, methodology and outcome of the research undertaken Assessment-I
Smoking and tobacco addiction is one of the few among the most basic general restorative issues, particularly to developed nations such as the UK. It has been represented that among all risk segments smoking is the fourth driving purpose behind infections and other several ailments like asthma, breathing and problems in the l…
Read
More
Tags:
Australia Maidstone Management Business management with marketing University of New South Wales Masters in Business Administration
BSBHRM513 Manage Workforce Planning
Download :
0 | Pages :
20
Course Code: BSBHRM513
University: Tafe NSW
MyAssignmentHelp.com is not sponsored or endorsed by this college or university
Country: Australia
Answer:
Task 1
1.0 Data on staff turnover and demographics
That includes the staffing information of JKL industries for the fiscal year of 2014-15, it can be said that the company is having problems related to employee turnover. For the role of Senior Manager in Sydney, the organization needs 4 managers; however, one manager is exiting. It will make one empty position which might hurt the decision making process. On the other hand, In Brisba…
Read
More
MKT2031 Issues In Small Business And Entrepreneurship
Download :
0 | Pages :
5
Course Code: MKT2031
University: University Of Northampton
MyAssignmentHelp.com is not sponsored or endorsed by this college or university
Country: United Kingdom
Answer:
Entrepreneurial ventures
Entrepreneurship is the capacity and willingness to develop, manage, and put in order operations of any business venture with an intention to make profits despite the risks that may be involved in such venture. Small and large businesses have a vital role to play in the overall performance of the economy. It is, therefore, necessary to consider the difference between entrepreneurial ventures, individual, and c…
Read
More
Tags:
Turkey Istanbul Management University of Employee Masters in Business Administration
MN506 System Management
Download :
0 | Pages :
7
Course Code: MN506
University: Melbourne Institute Of Technology
MyAssignmentHelp.com is not sponsored or endorsed by this college or university
Country: Australia
Answer:
Introduction
An operating system (OS) is defined as a system software that is installed in the systems for the management of the hardware along with the other software resources. Every computer system and mobile device requires an operating system for functioning and execution of operations. There is a great use of mobile devices such as tablets and Smartphones that has increased. One of the widely used and implemented operating syste…
Read
More
Tags:
Australia Cheltenham Computer Science Litigation and Dispute Management University of New South Wales Information Technology
Next