EconomicsQ&A by dot point

Explain the operation of the market mechanism including the laws of demand and supply, equilibrium price and quantity, movements along and shifts of curves, and price elasticity of demand and supply

Explain the basic economic problem of scarcity and the resulting need to make choices, including the concepts of opportunity cost and the production possibility frontier

Explain the different market structures (perfect competition, monopolistic competition, oligopoly, monopoly) and the role of government in regulating market conduct, including the ACCC and the Competition and Consumer Act 2010

Explain the factors that influence aggregate demand and aggregate supply in the Australian economy, and how each affects real GDP, employment and inflation

Explain the measurement of macroeconomic activity including real GDP, the Consumer Price Index and the unemployment rate, and the limitations of each measure

Explain the forms of market failure (public goods, externalities, asymmetric information, market power) and analyse the rationale for and forms of government intervention to correct market failure

Explain the determination of the Australian exchange rate under a floating regime, draw the foreign exchange market diagram, and analyse the structure of the balance of payments including the current account and capital and financial account

Explain the impact of globalisation on Australia, the role of major international organisations (WTO, IMF, World Bank), and evaluate the impact of Australia's free trade agreements

Explain the theory of comparative advantage and the gains from trade, analyse the rationale for and forms of protection (tariffs, subsidies, quotas, local content rules), and evaluate the impact of free trade agreements on the Australian economy

Explain the role of aggregate supply policies in achieving the macroeconomic objectives, including training and education, infrastructure, innovation and R&D, immigration, competition and deregulation, and tax reform

Explain the role of fiscal policy and monetary policy in achieving the macroeconomic objectives, including the structure of the Commonwealth Budget, the cash rate as the RBA instrument, and the transmission mechanism

Explain the distribution of income and wealth in Australia, the role of the tax and transfer system in redistribution, and analyse the impact of income distribution on aggregate demand, social cohesion and intergenerational equity

Explain the major macroeconomic objectives (strong and sustainable economic growth, full employment, low and stable inflation, equity, environmental sustainability), how each is measured, and the trade-offs between them