StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Micro Economic Policy - Assignment Example

Cite this document
Summary
This assignment "Micro Economic Policy" discusses the issue of unemployment that is still lowly addressed by the microeconomic policy. The objective of the policy was to reduce employment and expand markets. There is a need to mix and alter the policy for the sake of reducing employment…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER96.4% of users find it useful
Micro Economic Policy
Read Text Preview

Extract of sample "Micro Economic Policy"

Microeconomics is a major branch of economics that precisely focuses on the individual sectors of the economy most particularly on producers and consumers (Australia 1998). Since the year 1980, the federal government of Australia has majorly been focusing on microeconomics. This is simply because it is the most effective sector for improving international competitiveness (Australia 1998). The Australian government reformed the policy by reducing or removing trade and competition restrictions on international and domestic markets (Australia 1998).  The policy focused on the reallocation of resources to reflect market forces which were followed by reduction and removal of tariff protection in addition to corporatization and privatization of government business enterprises (Australia 1998).  

The microeconomic reforms aimed at improving the efficiency and effectiveness of industries and therefore impose competition (Gittins & Forsyth 2008). When more and more industries become efficient per unit production the costs will eventually be lowered (Gittins & Forsyth 2008). This will automatically result in increased profit made by the business. The main objective is to ensure that producers transfer and supply their resources to the industries that are efficient. This will see the abandonment of those industries which are not using the resources efficiently.

The implementation of the microeconomic reforms basing on the 5 sector flow model has seen sharper competition develop between lower and foreign investments. More and great incentives are now available for local investors to improve their productivity by reducing costs and seeking new markets (Gittins & Forsyth 2008). There is a great openness to trade and many people are encouraged even to specialize in business. Moreover, prices of commodities have also lowered and things are much affordable to the domestic consumers. Competition in communication sectors has seen advancement since the reforms ended monopoly discrimination of single businesses (Gittins & Forsyth 2008).

The microeconomic reform policies have one major advantage. It is upon individual businesses to come up with the best strategies to sell and overcome competitors. This has seen service delivery and quality of products improve. One of the shortcomings is conflict among competing business companies (Budget.gov 1998). The free business environment needs to have regulations. This will ensure there is respect among competing companies as far as competition is concerned. Australian microeconomic policy has major success in the domestic competition. This is evident in the air travel business. Prices of airlines fell immediately after the airline policy was formulated in the year 1990 (Budget.gov 1998). With these lower air transport costs, the number of passengers also increased to 75%. Employment rates also increased to 19% in 1996 (Budget.gov 1998).

Average airfare (from 1990-1996 in Dollars)

Employment in the aviation sector

The other success of the implementation of the reform policy is on the countries GDP. The industry commission of Australia has estimated possibilities of the range of reforms in regard to national competition policy could boost the countries GDP to 5.5% (Budget.gov 1998).

Projected benefits of the implemented Microeconomic reforms policy

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Assignment Example | Topics and Well Written Essays - 500 words - 129”, n.d.)
Assignment Example | Topics and Well Written Essays - 500 words - 129. Retrieved from https://studentshare.org/macro-microeconomics/1640384-assignment
(Assignment Example | Topics and Well Written Essays - 500 Words - 129)
Assignment Example | Topics and Well Written Essays - 500 Words - 129. https://studentshare.org/macro-microeconomics/1640384-assignment.
“Assignment Example | Topics and Well Written Essays - 500 Words - 129”, n.d. https://studentshare.org/macro-microeconomics/1640384-assignment.
  • Cited: 0 times

CHECK THESE SAMPLES OF Micro Economic Policy

Role of government in East Asian miracle

Each government played a pivotal role in the formulation of policy and national agenda of economic development that resulted in the miracle to happen.... An independent study conducted by the World Bank on the progress of East Asian tigers, the “The East Asian Miracle” remarks that: Fundamentally sound development policy was a major ingredient in achieving rapid growth: macro management, saving promotion policies, education, agricultural productivity, .... rapid growth has at times benefited from careful policy intervention....
8 Pages (2000 words) Research Paper

Intellectual Property in Canadian Manufacturing Industry

In the international trade and investment policy the IPR issue has captured the attention.... The attention can be clearly identified where the inclusion of negotiations on TRIPs within multilateral trade policy were taking place.... The implicit policy assumes the differences in IPRs worldwide and these differences affect the investment flows and international trade....
16 Pages (4000 words) Essay

Macro-Economic Policy

Running Head: Macroeconomic Policy Macroeconomic Policy Macro-economic policy The government carries out the macro-economic policy of a country.... Initially, the economic policy might have two broad analyses.... The macro-economic policy is concerned with carrying out certain economic objectives.... In a positive analysis, the economic consequences of a policy are examined.... On the contrary, normative analysis looks into the question whether the policy should be used....
6 Pages (1500 words) Essay

Introduction to Macro-Economics: Fiscal and Monetary Policy

Introduction to Macro-Economics: Fiscal and Monetary policy 1.... Fiscal and Monetary policy and their differences With an intention of achieving the economic stability of the nations, governments have always taken in account various economic tools such as taxes, public spending, borrowing and debt management.... hellip; It is in this context that Fiscal policy is considered as the measures adopted by the government to adjust its level of expenditure with the purpose to monitor and thus influences the economic growth (Gupta, 2007)....
3 Pages (750 words) Admission/Application Essay

Effects of Taxation on Macro & Micro economics

Fourth, Taxation may be used as a fiscal policy instrument to influence full employment levels.... Sixth,-Protection policy Function.... The Overall the study of economic environment is divided into two categories, microeconomics and macroeconomics.... The micro-economics deals with individual units while the macro-economic deals national or international economy as a whole.... … Term paper on Effects of Taxation on Macro & Micro economics Abstract The Overall the study of economic environment is divided into two categories, microeconomics and macroeconomics....
5 Pages (1250 words) Term Paper

Luxury Company in the African Market - Mercedes-Benz

Running head: LUXURY COMPANY IN THE AFRICAN MARKET 7th November 2013 Table of Contents Table of Contents 2 Introduction 3 Opportunities 4 Limitations 7 Competitive marketing strategy 9 Product 9 Price 9 Promotion 10 Place 10 Conclusion 10 References 12 Introduction The increased population in the African countries has led to an increase in demand not only for basic products but also for luxuries including jewelry and motor vehicles among others....
10 Pages (2500 words) Research Paper

British Construction and Property Industries

This paper discusses the economic organization of the British construction and property industries and the government macroeconomic policy.... The property industry is a vital component of an economy and important route by which a Government can achieve the delivery of many of its cherished policies....
6 Pages (1500 words) Assignment

Issues Facing the Central National Bank

Diversification can be achieved through the initiation of mergers, ventures into provision of new products, an alteration of the bank's microeconomic policy among other aspects (Beamish and Ashford 2005).... These variables work on a variety of ways to impact on the environment in which business is conducted....
7 Pages (1750 words) Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us