ECONOMICS REVISION - ewwwww, i've lost all hope so let's go BACK TO THE SIMPLE STUFF

FRAMEWORK

Damnnn I still feel really IRRITATINGLY COMPLACENT about this eco test. Which sucks because it all got crammed in today and I doubt how much I can remember thanks to normally relatively shoddy memory.

SO. BACK TO BASICS AND OTHER CRAP.

Equilibrium In Circular Flow
S + T + M = I + G + X
..when asked about budget surplus/deficit, LOOK AT THE GOVERNMENT BITS ONLY i.e. G/T, oh person who's made this mistake like ten times already.

Y = C + S

Market Equilibrium;
Demand = supply

PPC => represents combination of what could be produced - two goods.
OC => represents alternative FOREGONE
Cannot move outside of curve unless new tech/resources found. Or something.

Labour Force = employed+unemployed seeking work (+self-employed)

Participation Rate = Labour force over working age population

Taxation
ART = T over Y
MRT = change in T over change in Y
MRT refers to LAST DOLLAR EARNED

APC/APS/MPC/MPS are pretty similar to Taxation formulas...
MPC + MPS = 1

Budget outcomes = deficit, surplus or balanced.
Budget stances = expansionary, contractionary, neutral.
Currently => peak of $57 bn deficit, contractionary stance aiming for surplus by 2013.

Price elasticity;
TOTAL OUTLAY METHOD
price x quantity = revenue. ...OR SOMETHING LIKE THAT.
When price and revenue move same way, inelastic.
When price and revenue move awayyy, elastic.
When price moves and revenue stays the same, unitary.
The graphs, generally elastic is flatter, inelastic is steeper and unitary's 45 degrees or so. But they'll hopefully have numbers..

...anything else?

Real Interest = nominal - inflation
Disposable = gross minus a glut of other stuff.

Okayy if we're getting really really basic...might as well do blurb of Topic One as well as anything else.

Consumer sovereignty = when consumers determine what is produced. May be affected by stuff like persuasive advertising.

Economy must answer;
-What to produce
-How to produce
-How much to produce
-How to distribute
..oh as if we'll ever get tested on those. Stop taking up precious brain space D: opportunity cost dude.

GST = regressive? Indirect?
Impact of tax = who suffers from the tax
Incidence of a tax = whoever the tax is aimed for attaches it for another person
Company tax = proportional? Direct?

Oligopoly => few large firms are selling the similar things thus less-no market entry barrier and price takers => takes price market allocates

Monopoly => when one business has control over an entire industry, generally seen as bad so Government does all sorts of stuff to prevent it unless it's the one owning monopoly. Monopoly may be good as it then has to strive for technical/allocative effeciency to deter other people trying to take its market share. price maker => powerr in price, able to restrict output.

monopolistic competition => relatively large amount of firms selling extremely similar things which are only differentiated by things like brand, relatively easy to enter still and although still price taker => bit more control than sheer oligopoly because you can mess with consumer minds here

Perfect/pure competition => When they sell the same thing and no longer have power to determine anything, all determined by supply and demand

...ergh what IS that horror.
NEXT!

Uh. remember supply/demand graphs. demand = negative gradient. ME = when they intersect. Movements => price change only. Shifts can be changes in everything else; new equilibrium price!

TRENDS!
Increased casualisation of workforce means moving away from traditional thing of full-time employment => benefits such as flexibility/lower oncosts.
ADVANTAGES of it
employers => able to hire quickly, diversely, less on-costs
employees => able to diversify experience, quit easily, switch easily
DISADVANTAGES
employers => dude, paperwork. and if specialised skills are needed, hard to find.
employees => less job security, perks

Greater part-time thing during 2005-08 = because of half the reasons for casualisation. + possible social change due to women re-entering workforce => 71% of part time were women in 2007 according to Gittens or someone.
Any other trends?
Gender roles => women paid 15.6% less on average ~ 2008
despite equal opportunity cases and everything. SHAME.
ASX top 200 - 28% less ~2008
POSSIBLY because women have had less time as part of permanent workplace + less education but...eh.

Unemployment
Cyclical => contractionary economic activity => lower aggregate demand => not as much demand for labour = unemployment.
Structural => when structural change in economy happens e.g. technology making jobs obsolete thus jobs are eradicated.People who lost jobs may not have skills which fulfil criteria of new sectors hence unemployment. e.g. ATMS => teller-people. What are they actually called?

Current inflation rate = 3.1%
Which is over the RBA target of inflation which is 2-3% on average per business cycle. May have effect on the cash rate in future - currently 4.5%.

Speaking of RBA...
it conducts monetary policy through its manipulations of the cash rate.
This is done through DMOs => cash rate on overnight loans to banks through STMM money => banks/non-banks have Exchange Settlement Accounts with RBA => within STMM, forces of supply and demand rule. If supply>demand, lower rate. => can lower through RBA selling Commonwealth Gov. Securities and RPAs, making 'em attractive until banks buy them thus lessening amount of available cash = higher rates! => vice versa, RBA buys 'em back to give money.
..and when cash rate changes, generally banks follow to reflect its interest on loans.
RBA wants to reach economic utopia i.e. optimum i.e. low unemployment/inflation.
Why would it ever lower cash rate?
Steady low inflation + possible unemployment threat = Lowerr.
Too much inflation = raiiiseee.
BLAHHHHHHH.

RANDOM GOVERNMENT STUFF which I haven't actually looked at for a term but will trust myself for now and verify tomorrow;
$42 infrastructure thing to stimulate economy 08/09
forecast unemployment for GFC = 8.5% => only really peaked at 5.8% or so. Which is kind of cool.
Deficit => $57bn peak 09/10
AUS DID GOOD during GFC = only one quarter of negative return thereby avoiding technical recession, first developed economy to spring back. Although deficit is a little problem, surplus was supposed to come back by 2013 as according to budget if the world hasn't ended by then.

...like they ever need these.

FINANCIAL REGULATORS = APRA, ASIC, RBA = COFR
They do all sorts of nice stuff to ensure financial stability which I really cbb to type, this gang of three was established due to Wallis Inquiry 1996.
..why do I even know that, thanks wiki.

Stuff which may affect;
demand of goods => price of the good, price of other goods,fashion of the time
supply of goods => how expensive it is to produce, expectations regarding that good,
supply of labour => random stuff about population e.g. age, workplace environment, pay...human capital (skills needed)
demand of labour => economic conditions (derived demand), cost of it relative to capital, labour productivity
We apparently don't need anything for price elasticity ( I THINK ) but just in case...
price elasticity of demand => is it a luxury, substitutes, how long it's been since last price hike, proportion of income spent on thing..
supply => ..basically same thing dude.

OKAY I'M DONE WITH THE INCOHERENT POCKMARKS OF ECONOMICS, will cram last-minute-ly more literally today. Hello witching hour, I'm hoping to never see you again because of education-related stuff.

BYEBYE SOON LAST PRELIMINARY EXAM WHICH I SORT OF CARE ABOUT (:

ECONOMICS UPDATE FOR MY OWN REFERENCE BECAUSE RESULTS WERE RELEASED ABNORMALLY QUICKLY,
and because I doubt anyone cares enough to read this.

*...you remembered how to do ART but not MRT? And BOTH OF THESE you typed out on this thing around eight hours before the test? Oh shameee.

*You put the fruit market as a factor market. When there was a capital market option hovering innocuously around two centimetres above it. Yepp. And then Mr. Mac wonders why the grade sort of failed at MC.

*YOU FORGOT HOW TO SPELL YOUR ECONOMICS TEACHER'S NAME AND SO PUT MR.MAC(: on all your test papers? ...nooooooo.

*Post-mortems are kind of fun, but relatively useless. Just go reread the test papers if you ever want to refresh mistakes.

*Oh yeah. major warning for the future; DON'T GET THHAAATT complacent about legal studies. It's a really horrifying subject in disguise. Oh, and modern as well. Plus eco. And probably Italian. And...Englishes...I suppose...even though they're not out yet...ew...