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Within an economy, four types of markets, viz., perfect competition, monopoly, monopolistic competition and oligopoly can be seen. These markets have different characteristics depending on the number of sellers and buyers, types of products, restriction regarding entry or exit and other related factors (Weller, Kleer and Piller 2015). It is essential to mention that each market structure exists in real field and conseque...
The economy of a countries is contributed by production and consumptions of products and money supply. Generally, greater economies record higher production and consumption rates. The Australian economy is a huge mixed- income economy that recorded a gross domestic product of AUD $ 1.69 trillion in 2017. The service industry is a huge contributor to the growth of the Australian economy accounting to 61.1% of the gross dom...
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The income elasticity of demand captures proportionate change in demand for a corresponding proportionate change in income (Baumol & Blinder, 2015) Due to recession demand of consumers reduces by 10 percent. Given the income elasticity of pre-recorded music compact is +7, the 10 percent decline in consumers’ income reduces demand for pre-recorded compact disc by (10*7) = 70 percent. for cabinet maker’s work, the...
Write an opinion piece to assess the Australian government’s management of market failure in the economy
Topic- Government and the economy
Write an opinion piece to assess the government’s management of market failure in the Australian economy in relation to either:
Externalities, with specific focus on positive/negative externalities in relation to the environment
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