Micro and Macro Effects 25 Markers

Question 1

Micro policies- micro effect

Answer 1

-Demmand and supply
-Elasticities
-Consumer and producer surplus
-Producer revenue
-Government failure

Question 2

Micro policies- macro effect

Answer 2

-Government revenue
-Income inequality
-Cost
-Unintended consequnces on productive capacity and profitablity/investment

Question 3

Exchange rate changes- Macro effects

Answer 3

-As/Ad
-Growth
-Unemployment
-Inflation
-current account

Question 4

Exchange rate changes- Micro effects

Answer 4

-Elasticity
-Stakeholders

Question 5

Market structures- Micro effects

Answer 5

-Allocative effciency
-Productive efficiency
-X-efficiency
-Anti competitive stratergies
-Price discrimination

Question 6

Market structures- Macro effects

Answer 6

-Dynamic efficiency and LRAS
-Jobs
-Productive effciency and LRAS
-Competitive markets and poverty alleviation

Question 7

Trade union- Micro effects

Answer 7

-Wages and employment
-Workers rights and protection
-Monopsony labour market outcomes
-Costs to firms
-Wage discrimination

Question 8

Trade union- Macro effects

Answer 8

-Unemployment
-Inflation
-International competiveness, trade and current account
-FDI

Question 9

Subsidy- Micro effects

Answer 9

-Price and consumer surplus
-Quantity and market failure
-Affordability and equity
-Producer Revenue and inefficiency
-Cost to goverment

Question 10

Subsidy- Macro effects

Answer 10

-Protect domestic producers and workers
-Inflation
-International competiveness, trade and current account
-Government finances
-FDI

Question 11

Privatisation and deregulation- Micro effects

Answer 11

-Allocative efficiency
-Productive efficiency
-X- efficiency
-Dynamic Efficiency
-Stakeholder impacts
-Market failures

Question 12

Privatisation and deregulation- Micro effects

Answer 12

-Productive and dynamic efficiency and result on LRAS
-Employment and unemployment
-Infrastructure building and result on Competiveness and FDI
-Goverment revenue