Economic Issues

 ECONOMIC

   ISSUES

                             (Word count : 2706 including references)

Introduction

Economics is defined as a subject matter that focuses on rational management of scarce resources in such a manner that an individual maximize its profit at a micro level and the society maximizes its social welfare at the macro level. Economics is categorized into two levels i.e. Micro level and the macro level. Microeconomics deals with economic problems at the level of an individual; for example, what is an individual demand? On the other hand, macroeconomic deals with the economic problem at the level of a society as a whole. For example, general price level, national income etc. The central problem which is faced by every economy is Scarcity. In simple words scarcity means the shortage of something or when the demand exceeds the supply. In addition to this, resources are not only scarce but they are limited in relation to our wants and have alternative uses. And the central Problems which are faced by every economy include 1 what goods to produce? 2 how to produce those goods? 3 for whom to produce those goods? For example, more than 13 million people in Victoria travel each day and they have to make choices between when to travel, whether to travel by bus, train or they should walk ( Planmelbourne.vic.gov.au, 2012). At macro level, an economy faces the problem of whether it should invest in defense goods or civil goods and which method it should use to produce the goods for example, whether to rely on manpower or  use modern technology. And lastly then have to decide to whom they will distribute the produced goods. The assignment will discuss the price variations in Australia and important determinants for them to work. In addition to this, it will also include policies which regulate reduction of the carbon emissions and the costs incurred by the country to increase its growth rate. Last but not the least we will talk about free market economies.

Economic issues

Price discrimination simply means charging different price from the different groups of people. This biases exists in Australia also. If we look into our day to day activities we all face discrimination in one or other way. For instance, when we travel in trains or any other public transport we use myki and government has set different prices for students, seniors and for general public. Both public and private organisations practice price discrimination for the services they provide. For example, Kentucky fried chicken give their team members discount cards which they can use at any store of Kentucky fried chicken to buy chicken at a discounted price as compared to others who pay more for same products (Timms 2013).