Nobody downloaded yet

Economic - Essay Example

Comments (0) Cite this document
Summary
Microeconomics_200_assignment a) Introduction During the past few years, Western Australia’s resources area particularly the mining sector proceeded to relish particular considerations produced by tough international demand for commodities. This assignment aims to test the impact of this commodity boom particularly the iron ore resources explosion, on the economy of Western Australia.1 The iron ore industry is currently the major individual commodity division in Western Australia by measure and represents a key role in the State’s export-driven economic system…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER95.9% of users find it useful
Economic
Read TextPreview

Extract of sample "Economic"

Download file to see previous pages The solid boost in quantities sold jointly with an upsurge in iron ore prices forced sales values to a new record of $11.3 billion which is up by 83% as against the past year’s level. Pricing in the Iron ore market For the past 40 years, the prices of iron ore have been determined in private discussions among the small fistful of mineworkers and steelworkers which reign both spot and contract markets. By tradition, the first contract attained amongst these two groups places a yardstick to be adopted by the remainder of the industry.2 This yardstick scheme of pricing iron ore has on the other hand in current years started to collapse, with contributors along both demand and supply chains bidding for a change to short time pricing. Since most of the other commodities were already following a matured market based pricing system, it is likely for iron ore to go behind. Even though exchange-authorized iron ore exchange contracts have grew during the past few years, so far no switch over has instituted a good futures market for the mostly seaborne $88 billion a year iron ore trade (Financial Times, 2009). The need for change in the country The need for change in the country will be due to the following factors: i Economic growth in the long-run for Western Australia’s economic growth will carry on to be well-built for the next 20-30 years. ii The demand for labour under such circumstances will persist to develop more quickly than the ability of the state to supply. This demand will have to be met by the government from the states’ natural population or from the present migration plans. iii It is estimated that a whopping additional 224,000 workers will be needed by 2016 in Western Australia. iv This will result in demand for training people, housing requirements will be more, and there will be the need for drastic growth in infrastructure as well. The demand for production with reference to Isoquant and Isocosts curve theory The principle of substitution discloses a basic theory of neoclassical location theory. Without a doubt, it may be debated that in a neoclassic site, the position of factories is a practice in changeover as 'trade-offs' are made amongst the different location elements. Thus procurement and allocation costs are interchanged for one another; for instance if a site is near the market then its procurement costs substitute for distribution costs. At the same time if a factory is situated near the sources of raw material substitutes, distribution costs for procurement costs. If a cheap labour location has to be considered then the factory needs to compare the impact of lesser labour costs for high transportation costs or vice versa that is lower transportation costs for higher labour costs. The theory is that in reality firms are boosted to scatter production to low wage areas to make precisely this form of permutation as productions grow. As the production matures, neither the low wage region or the 'least transport cost will provide a solution (Hayter, 2004). Figure showing all possible combinations of optimal input for a given output Source: Hayter, 2004 The above graph illustrates the production theory. In this specific theoretical position, an isoquant ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Economic Essay Example | Topics and Well Written Essays - 1500 words - 3”, n.d.)
Retrieved from https://studentshare.org/environmental-studies/1421727-economic
(Economic Essay Example | Topics and Well Written Essays - 1500 Words - 3)
https://studentshare.org/environmental-studies/1421727-economic.
“Economic Essay Example | Topics and Well Written Essays - 1500 Words - 3”, n.d. https://studentshare.org/environmental-studies/1421727-economic.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Economic

Economic

...?Economics 513569 What is the main issue presented in the media report? Discuss what has actually happened Highlight the reason for the issue being raised Outline what possible impacts this change could have A classic supply and demand scenario is emerging as housing stocks increase while fewer buyers seem to be interested in actually closing on a home. With fewer buyers willing to actually purchase new or existing homes, the new homes being added to the market will certainly cause prices to go down over the aggregate. Much like the US market, the larger urban areas will see larger concentrations of stalled and long-term homes in the inventory and the trend will continue to increase the numbers in the inventory according...
4 Pages(1000 words)Essay

Economic

...?Economic Analysis of “Australia's jobless rate envy of world, Treasurer Wayne Swan says” (Brinsden Introduction Australia continues to havea low jobless rate and is quite happy to crow about it in the Western world. One can look at this and try to examine how Australia is getting it right while the rest of the Western world is wallowing through a recession and what some may term a depression. At the Australian Chamber of Commerce and Industry (ACCI), “Mr. Evans said higher interest rates, a stronger Australian dollar, subdued levels of household spending and high international oil prices were all affecting business confidence in the non-mining sectors.” This demonstrates quite ably that macroeconomic tinkering must always strike... a...
5 Pages(1250 words)Essay

Economic

...?Economic Table of Contents 0 Introduction 3 The next section talks about the economic rationale which drives firms comprising the banking sector to build an oligopolistic market framework; there are special references to empirical evidences from different nations in this regard as well. The third section is an illustration of the implication that an oligopolistic banking sector is likely to have over the residents of a nation. The fourth section depicts the situation in Australia where nationals have been immensely protesting against the oligopolistic banking sector and finally the last section summarises the contents of the entire paper. 3 2.0 Economic Rationale behind Oligopolistic Behaviour in Banking Sector 4 3.0 Implications... ...
10 Pages(2500 words)Essay

Economic

...?Economics Article: RBA raises inflation forecast as traders raise rate expectations Summary Monetary policy of any country plays a key role with regard to bringing about economic reforms. The key objectives the policy makers, is to ensure that the economy runs successfully and inflation is controlled at all costs. The basic underlying factor behind the formation and implementation of the policy is to ensure that money itself doesn't act as a tool of economic disturbance. This article highlights various key issues faced by Australia in recent times, and helps in understanding the manner in which the central bank's commitment to price stability helps in maintaining a desired a level of...
6 Pages(1500 words)Essay

Economic

...?Running Head: UNEMPLOYMENT IN THE UK Introduction Unemployment is a term used by economists to describe a situation in an economy where there is labour force that has not yet been absorbed in the work market. Unemployment rate therefore measures the percentage of individuals in the labour force who are not able to secure jobs. It is measured using the formula given below; Unemployment = number of people unemployed/ number of people in the labour force*100 This is an economics study set out to understand the issue of unemployment in detail. More particularly it will consider the case of the UK and to that it will answer the study questions, “What are the downsides of unemployment in the UK? How does unemployment affect...
2 Pages(500 words)Essay

Economic

...economy are to be found in the iron ore industry, while in excess of 80% of the whole number of supplementary jobs are anticipated to be created in other industries, in particular the service industries. This depicts that the economic consequences of the elaboration of iron ore exports and new iron ore projects are very wide (Gregory, 1976). Labour mobility In the long run will ensue in models of net interstate migration changing over to privilege the comparatively resource-dependent States, cutting down inequalities in unemployment rates and wage rates between the States. The supply States would also draw investment from the remainder of the country. Put differently, enduringly advanced commodity prices are probable to...
5 Pages(1250 words)Essay

Economic

...?Economics Table of Contents Economics Table of Contents 2 A: Trends in pattern of demand and supply of oil commodity during the period 2000-2005 3Introduction 3 Objectives and Research Questions 3 Factors determining demand and supply of oil 3 Trends in Demand and Supply of Oil between 2000 and 2005 5 Policy Implications 5 Conclusion 6 B: Why is there an inverse relationship between price and quantity demanded of a commodity? Is this always the case? 7 The Law of Demand 7 Exceptions to the law of demand 8 Conclusion 9 References 9 A: Trends in pattern of demand and supply of oil commodity during the period 2000-2005 Introduction Oil is regarded as one of the most important and highly demanded fossil...
7 Pages(1750 words)Essay

Economic

... work If a price for an inferior good changes the substitution effect and the income effect work in the opposite directions. The resulted outcome cannot be defined in general case – the consumption may stay the same (in case of vertical demand curve), decrease or increase depending on the latitude of shift in consumption determined by each of the two effects. For instance an increase in price of certain inferior good X will lead to: Replacing good X by consumption of other goods (substitution effect); Decrease of income expressed in terms of quantity of good X which leads to consumption of more of X (income effect for inferior goods). The ultimate result may be as follows: If the change caused by the income effect is greater than...
2 Pages(500 words)Essay

Economic

...Underdeveloped Countries Introduction To be underdeveloped is to not reach the maximum maturity level. Usually, it is the ‘economic underdevelopment’that becomes a critical problem. It includes lack of health care, food, shelter, education, employment opportunities and even drinkable water. This means that underdeveloped countries do not have the basic crucial necessities of human life let alone resources for progress. The main sign of an underdeveloped country is that the resources available are not being exploited to their maximum socio-economic potential. There is a major disparity between the income levels in such countries – people are either too rich or just too poor. Some basic examples of...
4 Pages(1000 words)Essay

ECONOMIC

...First Supervisor Inter-linkages between Human Development with Human Capital as well as Income Inequality and Poverty using Case Study of Sierra Leone The subject of current paper is the understanding of human development (HD) and economic growth (EG) to analyze the correlation between the needs of the national economic framework with respect to selected economic concern. The primary interest of economist is to understand the pattern of economic performance and HD in Sierra Leone and its related factor to propose the policies for sustainable growth. Economic indices based on infrastructure development such as healthcare facilities, transportation, Power...
2 Pages(500 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Economic for FREE!

Contact Us