unlimited wants and limited resources.
Wants and needs | Issues
Resources are land, labour, capital and entrepreneurial skills. Rewards
What can be made with scarce resources?
Production Possibility Frontier
Goods | Future | Choices
- GDP measures production
- but distribution is not equal
- GDP growth ups and downs
- Circular flow model of income
- a market economy?
- comparing economies
What are the goals of the firm?
What is productivity?
How much should a Producer produce?
How much do they supply?
What impacts the supply of a product?
How sensitive are sellers to price changes?
What if the producer doesn't have to pay all the costs?
Goals of the firm
Economies and diseconomies of scale
The law of supply
Factors affecting supply
Price elasticity of supply
Market failure and externalities
Y = C + S, APC etc
- Income sources
The law of demand
Factors impacting demand
Price elasticity of demand
Who determines what is produced?
How much of their income do consumers spend?
Factors affecting consumption decision
How much do they demand
What impacts consumer demand for products?
How sensitive are buyers to price changes?
How does price and quantity get set by the Market?
Product and factor markets
Price mechanism, Supply and demand in the market
- Regulate industries and competition
- Set price ceilings and floors
- Redistribute income
- Provide public goods
- Provide merit goods
Regulate two very important markets...
The tradeoff: efficiency and equity
Labour demand influences
Labour supply influences
Price mechanism in the labour market
Labour market statistics
Economic costs of inequality?
Social costs of inequality?
Labour market calculations
The bodies and the history
Fair Work Commission (regulator)
- National Employment Standards (NES)
- National Minimum Wage
- Unfair Dismissal Protection
Types of employment contracts
- Awards (17% of workers)
- Enterprise agreements (39%)
- Common law contracts (38%)
Fairwork Ombudsman (educator)
ACTU and unions (representing workers)
Employer bodies (representing employers)
State governments (state govt jurisdiction)
Role of financial markets
Types of financial markets
Types of financial institutions
Financial market products
Financial market competition
The history in Australia
The GFC and the PIIGS
Particular financial markets
Foreign Exchange market
Short term money market/target cash rate
- Council of Financial Regulators
- Fiscal policy
- Monetary policy
ESAs and DMO