Microeconomic reform aims to boost productivity growth by creating an environment in which resources are allocated to their most productive uses and firms use the most efficient methods of production.
Microeconomic reform is the generic term for 'government policies designed to deregulate or re-regulate product, service and factor markets in such a way as to promote competition and efficiency in relation to both domestic and international markets' (Robertson, Quayle and McEachern, 1994: 384).
Economic policies that tend to be encompassed by the microeconomic reform heading include:
"Microeconomic Reform and Productivity Growth" https://www.aph.gov.au/
- deregulation of the labour market,
- reducing tariffs and other forms of protection for domestic industry against foreign competition,
- deregulation of the financial markets,
- privatisation and corporatisation of public enterprises, and
- reducing distortionary taxes.
Then click on the image of the setting of a Corona sun, to head to the jamboard. Answer the questions on the jamboard using the information from the article. Finish up by writing a summary in your workbook.
Has working from home actually improved productivity? If it has could it be the next big thing in microeconomic reforms?
What significant microeconomic policy changes could come out of COVID-19?