Microeconomics
You are required to identify, discuss and analyse the core microeconomic contents and write a report covering all the relevant concepts discussed in class. You will only focus on microeconomic environment to address the issue. The length of your report is 2000 words. Your report should have sound academic references (minimum 6 references); your references cannot be from blogs. The purpose of this assignment is to test • your understanding of the basic and core Microeconomic concepts besides,
• your ability to analyse and apply the core concepts to the current issues affecting the Australian economy from a Microeconomic perspective
• your ability to use relevant theories and diagrams to support your answer
Questions:
The Federal government has introduced JobKeeper payments to tackle the rising unemployment due to COVID-19. Loss of employment has meant a loss of income; this means we are experiencing a decrease in individual demand by households. With affordability now low, income elasticity of demand has been impacted. This paper requires you to use microeconomic analysis to assess how individual demand can be improved.
Question 1:
1. Is JobKeeper effective in retaining casual employment?
1.1How is it impacting individual demand?
1.2 Do individuals have enough purchasing power to continue buying goods as normal?
1.3 Explain whether elasticity has changed. If so, how has price and income elasticity changed?
You must provide real evidences and use supply and demand diagrams to support all your answers above.
Question 2:
2. Is this change in demand having an impact on the supply side?
2.1 Will moving some manufacturing back to Australia help? If yes, what strategies can the government adopt to help grow individual industries? (Use microeconomics strategies)
2.3 Is this likely to influence consumer and producer welfare?
2.4 Will there be a dead weight loss? You must do a research then draw and show where the dead weight loss happens in the diagram.
You must provide real evidences and use supply and demand diagrams to support all your answers above.
Write 1000 words each for above question 1 and2.
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