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  1. Introductory concepts
  2. Market mechanism
  3. Elasticities  
  4. Market structures
  5. Market failures
  6. Macro activity/eco growth
  7. Inflation
  8. Employment & unemployment
  9. External Stability
  10. Income distribution
  11. Factors affecting economy
  12. Fiscal/Budgetary policy
  13. Monetary Policy
  14. Aggregate Supply Policies
  15. The Policy Mix
  16. Course revision


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 Course notes quick navigation

1 Introductory concepts 2  Market mechanism  3 Elasticities  4 Market structures 5  Market failures  6  Macro economic activity/eco growth  7 Inflation 8  Employment & unemployment  9  External Stability  10  Income distribution 11.Factors affecting economy  12  Fiscal/Budgetary policy  13  Monetary Policy   14 Aggregate Supply Policies  15 The Policy Mix

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How you are marked

The maximum score for each question is 100%. For every hint used, your percentage score is reduced by the ratio of that letter to the total letters required in the answer. For example, if the total number of letters within the gaps is 50 across the whole response, then each letter is worth 2 percentage points. Each hint will therefore reduce your score by 2 percentage points.

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1. Outline two defining characteristics of a perfectly competitive market. 2 marks

2. Hire car companies in capital cities will typically operate in a competitive market. Identify three factors that might support an argument that suggests the 'hire car' market is perfectly competitive and outline why each factor results in benefits for consumers. 6 marks

3. Explain how a merger of two large iron ore producers could impact on the structure of the iron ore market in Australia. 3 marks

4. Explain how a government's decision to ban 'exit fees' charged by the banks (e.g. a fee charged when a customer transfers a mortgage to another bank) can increase the level of competition in banking. 3 marks

5. Explain why the airline and petroleum industries are unlikely to be considered perfectly competitive. 3 marks

6. Discuss one government measure that could further increase competition in the banking, petroleum or banking industries. 2 marks

7. The banking industry is highly concentrated in Australia, with the major players being the big four banks, NAB, CBA, ANZ and Westpac, as well as a number of smaller regional banks, such as Bendigo Bank. The industry became more concentrated over 2009 with merger/acquisitions, such as the CBA takeover of BankWest and the Westpac merger with St George. This activity has implications for consumers, producers and governments. Explain why the banking industry in a country like Australia would not be described as 'perfectly competitive.' 4 marks

8. Outline one possible negative consequence for consumers following the merger of two big banks. 2 marks