In this topic you will learn to:
Examine economic issues
Apply economic skills
- analyse the opportunity cost of government decisions in addressing specific economic problems or issues
Apply economic skills
- explain how governments are restricted in their ability to simultaneously achieve economic objectives
You will learn about:
Economic objectives in relation to:
• economic growth and quality of life
• full employment
• price stability
• external stability
• environmental sustainability
• distribution of income
Potential conflicts among objectives
• economic growth and quality of life
• full employment
• price stability
• external stability
• environmental sustainability
• distribution of income
Potential conflicts among objectives
Overview
Governments can choose which priorities economic policies target in their design and implementation. These policies can also change over time and through the different lenses of various political perspectives.
Generally there are three major objectives of economic management:
Using the Frayer diagram in the slides below, write a definition, facts/ characteristics, examples and non-examples for each of the objectives of economic policy.
Generally there are three major objectives of economic management:
- Economic growth: an increase in GDP which improves the quality of life indicators, such as purchasing power, literacy rates, and lifespan.
- Internal balance: price stability and full employment.
- External balance: CAD, BoP: foreign liabilities and stable exchange rates.
Using the Frayer diagram in the slides below, write a definition, facts/ characteristics, examples and non-examples for each of the objectives of economic policy.
Test your knowledge and recall of the 6 economic objectives in this quizlet:
2021 Objectives for the Australian Economy
The Organisation for Economic Co-operation and Development (OECD) is an international organisation that works with member countries on global issues. In a recent report, the OECD outlined what priorities the Australian government needs to address in delivering its economic policies.
The pandemic took a particularly heavy toll on young businesses and highlighted existing education inequalities. The recovery brings an opportunity to boost innovation and reallocation, necessary to face the challenges of digitalisation and meet climate change targets in a cost-efficient way. It also provides a chance to boost educational opportunities for disadvantaged students and refocus on improving the living standards of Indigenous communities.
ECONOMIC POLICY REFORMS 2021: GOING FOR GROWTH © OECD 2021
The "Going for Growth" report outlined 5 policy objectives for Australia for 2021:
- Competition and regulation: Boosting productivity growth requires attention to the framework conditions in which businesses operate
- Education and skills: Inequality in education and the level of skills limit the growth capacity of the economy
- Environmental policy: Limited co-ordination of greenhouse-gas reduction measures across states and territories make it difficult to achieve the Paris Climate Agreement goals
- Tax system: Comparatively heavy taxation on incomes relative to consumption makes the tax mix less growth-friendly
- Inclusiveness: Well-being gaps between Indigenous communities and the rest of the population remain large, notably in educational attainment, life expectancy and employment rates.
| australia-country-note-going-for-growth-2021.pdf |
Exercise Your Write to Learn:
1. There are 6 objectives of economic management and 5 recommendations from the OECD. Outline how each objective is connected with one or more recommendations. Write at least 2 sentences for each objective.
1. There are 6 objectives of economic management and 5 recommendations from the OECD. Outline how each objective is connected with one or more recommendations. Write at least 2 sentences for each objective.
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2. Go to the "Budget 2021" at the link below, read the overview and write down the budget priorities. Explain how each policy can achieve an economic objective.
3. Using the "ABC's Winners and Losers" (click on the image below), assess the effectiveness of the budget policies in achieving full employment in the Australian economy (see suggested plan below).
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Applying New Learning
Assess the effectiveness of the budget policies in achieving full employment in the Australian economy
Aim to:
• Provide a sustained, logical and cohesive response
• Integrate relevant economic terms, concepts, relationships and theories
• Demonstrate a clear and comprehensive understanding of government policies that are designed to achieve full employment in Australia
• Develop arguments to judge the success of government policies designed to achieve full employment in Australia
• Provide a sustained, logical and cohesive response
• Integrate relevant economic terms, concepts, relationships and theories
• Demonstrate a clear and comprehensive understanding of government policies that are designed to achieve full employment in Australia
• Develop arguments to judge the success of government policies designed to achieve full employment in Australia
| fe_response_scaffold.docx |