Micro and Macro Reasons Flashcards
What are micro reasons for protectionism?
Protecting Workers
Protect Against Dumping
Protect Standards
What are macro reasons for protectionism?
Infant Industries and Diversification
Protect Against Unemployment
Tariff Revenue for Government
Solve Trade Deficit
What are micro causes for a current account deficit?
Low Productivity
High Relative Minimum Wages
Strong Trade Unions
Resource Depletion
What are macro causes for a current account deficit?
High Growth at Home
Low Growth Abroad
Strong Exchange Rate
High Relative Inflation
Poor Investment
Loss of Competitive Advantage - De-Industrialisation
What are micro barriers to development?
Low Productivity
Poor Ed, Health and Infrastructure
Volatile Commodity Prices
Resource Depletion
Power of MNCs
What are macro barriers to development?
Protectionism Abroad
Volatile Exchange Rate
Corrupt Government
Low Savings and Investment
Unbalanced Growth
What are micro influences on international competitiveness?
Productivity -> ULCs
Regulations
Labour Market Flexibility
Competition
Subsidies
Investment, R&D, Banking Sector
What are macro influences on international competitiveness?
Tax Rates
Relative Inflation
Exchange Rate
Infrastructure
Gov. finances
Protectionism
What are micro effects of market structures?
Allocative Efficiency
Productive Efficiency
X-Efficiency
Anti-Competitive Strategies
Price Discrimination
What are macro effects of market structures?
Dynamic Efficiency + LRAS
Jobs
Productive Efficiency + LRAS
Competitive Markets and Poverty Alleviation
What are micro effects of a trade union?
Wages and Employment
Worker Rights and Protection
Monopsony Labour Market Outcomes
Costs to firms
Wage discrimination
What are macro effects of a trade union?
Unemployment
Inflation
International Competitiveness, Trade and Current Account
FDI
What are micro effects of a subsidy?
Price and Consumer Surplus
Quantity and Market Failure
Affordability and Equity
Producer Revenue and Inefficiency
Cost to Government
What are macro effects of a subsidy?
Protect Domestic Producers and Workers
Inflation
International Competitiveness, Trade and Current Account
Govt Finances
FDI
What are micro effects on privatisation/deregulation?
Allocative Efficiency
Productive Efficiency
X-Efficiency
Dynamic Efficiency
Stakeholder Impacts
Market Failures
What are macro effects on privatisation/deregulation?
Productive & Dynamic Efficiency -> LRAS
Employment/Unemployment
Infrastructure Building -> Competitiveness & FDI
Government Revenue
What are micro causes of income inequality?
Education
Age
Capital Intensive Production
Technology
Flexible Labour Contracts
Inheritance
What are macro causes of income inequality?
One Sector Dominance
Recession
Globalisation
Gov. Policies/Corrupt Gov.
What are the micro consequences of income inequality?
Social Costs
Incentive to be Educated
Incentive for Entrepreneurship
Incentive to Work
What are macro consequences of income inequality?
Gov. Finances
Living Standards
Asset Bubbles & Indebtedness -> Financial Sector Instability
Growth
What are micro policies to reduce income inequality?
Minimum Wage
Maximum Wage
What are macro policies to reduce inequality?
Progressive Income Tax
G on Welfare (Transfer Payments)
G on Education/Health
Universal Basic Income (UBI)
