Question 1-
You are an Economist and have been asked by the Gold Coast Council of Queensland to provide advice on the policy options to deal with the increasing use of jet skis on the Broadwater. The increasing use of jet skis has had an adverse effect on other water uses and people who live in the near vicinity have complained about the excessive noise.
Question 2-
You are an Economist advising the Federal Government about the Australian Labour Market and issues relating to unemployment. The issues that you have been asked to report are:
a) if the labour market is working properly why does Australia experience simultaneous periods of unemployment and job vacancies?
b) does the minimum wage prevent lower rates of unemployment?
c) what types of unemployment are the most serious? Explain your answer.
Presentation - Answers should be typed and diagrams must be clear and neat and preferably drawn electronically. Hand-drawn diagrams are acceptable. The answer to the question should be divided into three parts:
Part 1 - Introduction
Provide in 'everyday language' and without reference to diagrams a summary of a correct answer to the question asked. This summary should include a succinct description of the point from where the analysis commences, the initial impact of the change in economic circumstances discussed in the question, identification of the problem(s)/issue(s) these changes create, the likely business/policy measure(s) taken in reaction to these changes, the short run and long run results of the measure(s) employed and a brief evaluation of the measures taken.
Part 2 - Analysis
Complete Part 1 and be able to recognise the correct economic theory and the associated diagram(s)/model(s) for the analysis. Be able to explain the basics of the theory and of the construction of the diagram(s)/model(s) and identify the appropriate equilibrium starting point in the context of the diagram(s)/model(s). Be able to identify the initial change in the diagram(s)/model(s) that results from the change in economic circumstances discussed in the question.
Part 3 - Conclusion
Complete Part 2 and using the diagram(s)/model(s) correctly identify the economic problem(s)/benefit(s)/issue(s) created by the change in economic circumstances and analyse if business/government should respond, what the response should be and, if a response is made,analyse the effectiveness of the response by reference to the diagram(s)/model(s) in the short-run and long-run.