Economy Mini Essay Plans for HSC economics PDF

Preview

Summary

This document encases the Economy Mini Essay Plans for HSC economics, this is intended for year 12 Students studying HSC...

Description

MINI ESSAY PLANS QUESTION TOPIC 1 Account for the differences between the different levels of economic development in the global economy. ( Topic 1) Discuss the effects of globalisation on the global economy ( Topic 1)

PLAN THE GLOBAL ECONOMY 1. Global trade and financial systems 2. Differences in the strength of internal financial and political institutions 3. Differences in factor endowments. Positive 1. Increased economic growth 2. Improved living standards 3. Increased economic coordination Negative 1. Global inequality 2. Environmental degradation

Discuss the influence of international organisations and trade agreements in promoting globalisation ( Topic 1)

1. 2. 3. 4.

WTO IMF World Bank Trading blocs

Evaluate the impact of development strategies used to promote economic growth in China. ( Topic 1)

1. 2. 3. 4.

Open-Door -> FDI Trade Deregulation -> portfolio Economic development -> adaptability

TOPIC 2

AUSTRALIA’S PLACE

Analyse the causes of Australia’s current account deficit and its effects on the economy. ( Topic 2)

Causes: 1. Low IC 2. Narrow Export Base 3. Savings-Investment Gap Effects: 1. Growing NFL 2. Debt sustainability 3. Loss of international confidence

Propose likely changes to the s tructure of industry  within Change 1: Free Trade Vs Protection - Current trends - pro self sufficiency Australia as a result of current trends in the global economy. ( Topic 2) composition in direction and trade Relationship with CHina need to look for other trading partners with similar demand - Move away from North America and europe to asia - Move from manufacturing to services and

commodities - competitive advantage Environmental Explain the implications of appreciations and depreciations in the value of the AUD for the Australian economy ( Topic 2)

Depreciation Pro: Increased International competitiveness Con: Deterioration of external stability Appreciation Pro: Lower imported inflation/consumer power Con: Dutch Disease and trade deficit

Explain the causes and effects of a depreciation of the AUD ( Topic 2)

Causes: - Monetary policy - Domestic economic conditions - Global economic conditions Effects: - Con = External instability and valuation effect - Pro = international competitiveness

Explain the implications of recent movements in the value of the Australian dollar ( Topic 2)

^ + a paragraph on volatility

Outline changes to Australia’s free trade and protection policy and analyse the effects of these changes on the Australian economy ( Topic 2)

Context - Globalisation integration of nations has meant that we dont need to produce everything, except for areas we have comp. Advantage - Since 1980s major deregulation of autrlaias product and financial markets have occurred, leading to ears of EG and only one recession (caused by COVID) since 1992. - Led to Strong EG - We have undertaken many bilateral and multilateral free trade agreements in the last few decades which have strengthened our exporting and M capacity. - While these agreements have exposed our domestic m competing industries to large competition, Australia have thrived in the commodities and services industries where we hold a competitive advantage through quality. The effects of our move towards free trade - Unemployment for M competing industries - Holden, Ford, PMV industries who laid of 700000 from 2011-17 - ⅔ of unemployment rate in 2017 - This is alrgae cost to the government financially throug social welfare and retraining - However, this reallocation of resources

-

Analyse the impact of globalisation on the economic performance of the Australian economy.

in the economy will provide greater productivity and efficiency in the future Heavy reliance on certain nations - China created a strong relationship - ⅓ of X and help us througbh GFC and mining boom appreciated our dollar to $1.12 helped us avoid recession. During June quarter $112 bn of X helped us reach BOGS surplus and lessen the effect - However, of recent times, this relationship has deteriorated following the Covid 19 pandemic has exposed Australia to supply shortages and possible need to rethink trade partners. - Barley has been put on a tariff of 80% along with significant tariffs on wine and other Australian X - This has been detrimental for Australian farmers who already are protected by such large subsidies for drought relief, eliminating their competitive advantage.

1. Economic Growth (COVID) 2. Unemployment (structural to do with trade and cyclical to do with COVID). 3. Environmental sustainability 4. External Stability

TOPIC 3.

ECONOMIC ISSUES

Explain the causes and effects of e  conomic growth (Topic 3)

Causes: 1. Consumption (Covid impacts) 2. Investment from businesses and fiscal 3. Trade Effects: Positive 1. Higher living standards 2. Employment creation Negative 1. Inflation 2. Environmental degradation

Discuss the causes and effects of i ncome inequality  for the Australian economy ( Topic 3).

Causes: Changes in the labour market ● Underemployment: Many jobs that have been created in recent years have been casual or part time rather than full time creating the problem of underemployment.

●

Decentralisation of the labour market: Has widened inequality between wage earners. Under enterprise agreements, workers with greater skills and bargaining power have been able to achieve greater wage increases than less skilled workers who rely on industrial awards for wage rises.

Inequality of opportunity ● Access to educational opportunities: Higher income earners have greater access to educational opportunities, making it more likely they will gain admission to university courses, allowing them to take up higher paid occupations ● Mental and Physical attributes: Not everyone has the same mental and physical attributes and therefore the same potential to acquire the same income and wealth. Eg, some individuals have skills in manual work which tends to lead to lower paying jobs than jobs that require analytical skills. ● Wealth through inheritance: People who inherit wealth have a much greater opportunity to build up their wealth through investment as opposed to those who start with no wealth. ● Access to the same networks of people: People may not have access to the same networks of people that may lead to new opportunities. E.g new migrants are likely to find it difficult to access social and business networks 1. Effects: Benefits 1. Incentive to upskill 2. Higher national savings Costs 1. Increased welfare support 2. Decreasing economic growth 3. Social issues Discuss the causes of i nflation  and its impacts on an economy ( Topic 3)

Causes: 1. Demand pull 2. Cost-push

3. Imported + expectations Effects: 1. Negative = Income inequality and contractionary macro 2. Positive = Borrowers loans diminish and avoids deflation. Explain the causes and effects of u  nemployment  ( Topic 3)

Causes: 1. Domestic and international business cycle (cyclical) 2. Structural changes (micro and globalisation) Effects: 1. Deterioration of the budget 2. Fall in wage growth 3. Social effects

TOPIC 4.

ECONOMIC POLICY

Discuss the conflicts between different economic objectives ( Topic 4)

1. Price stability v. full employment 2. Eco growth v. environmental sustainability 3. Eco growth v. external stability

Evaluate the effectiveness of environmental policies used to address market failure in Australia. ( Topic 4)

1. Regulations 2. Market-based policies 3. International agreements and targets

Evaluate effective policies to manage income inequality (Topic 4)

1. Fiscal (discretional tax changes and welfare) 2. Monetary (ability to secure loans etc.) 3. Micro (labour market reforms)

Discuss the role of fiscal policy and assess its effectiveness in achieving the Australian government’s current economic objectives. ( Topic 4)

1. 2. 3. 4.

Economic growth Unemployment Price stability Environment

Analyse the alternative ways of financing a budget deficit ( Topic 4)

1. 2. 3. 4.

Foreign borrowings RBA (unconventional i.e. COVID) Bonds to public sector Fiscal consolidation (optional)

Evaluate the effectiveness of macroeconomic policy on Australia’s goals of internal and external stability. ( Topic 4)

1. 2. 3. 4.

Full Employment Price stability CAD AUD

Explain how monetary policy has been effective in achieving internal stability. ( Topic 4)

1. Full employment 2. Price stability 3. Economic growth

Discuss the transmission channels of monetary policy. (Topic 4)

1. Consumption 2. Investment

3. Assets 4. Exchange rates Discuss the impacts of non-labour microeconomic reforms on the Australian economy ( Topic 4)

1. Privatisation/corporatisation 2. Regulation and deregulation (competition policy) 3. Environment

Analyse Australia’s policy options in managing the productive capacity issues in the economy. ( Topic 4)

1. Labour market reforms 2. Competition policy 3. Education and re-training

Discuss policy options the Australian government can use to achieve external stability ( Topic 4)

1. Fiscal - Impact trade (protection) - Budget deficits 2. Monetary - AUD 3. Micro - Increased international competitiveness

Discuss the impacts of reforms in the Australian labour market ( Topic 4)

1. Minimum employment standards 2. Decentralisation of wages (productivity but also inequality) 3. Education and training programs (structural u/e)

Evaluate the effectiveness of policies aimed to reduce Australia’s unemployment rate ( Topic 4)

1. Fiscal (cyclical) 2. Monetary (cyclical) 3. Micro (structural)

Evaluate the effectiveness of policy responses in dealing with price stability ( Topic 4)

1. Monetary (interest rates and imported) 2. Fiscal (demand-pull) 3. Micro (long-term due to increased comp)...