ATAR Notes: Forum
VCE Stuff => VCE Business Studies => VCE Subjects + Help => VCE Economics => Topic started by: chikopapi on April 17, 2008, 04:41:30 pm
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Outline ONE demand factor and ONE supply factor that has contributed to economic growth in the economy between 2000-01 to 2006-7.
Outline ONE demand factor and ONE supply factor that has contributed to restrainingeconomic growth in the economy between 2000-01 to 2006-7.
Anyone one help on answering these ones? ;) Much appreciated.
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high marginal tax rates, and tariffs have restrained economic growth.
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What are marginal tax rates as compared to just tax rates?
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Marginal tax rates are where you only pay a higher rate of tax on every dollar over that threshold. For example, imagine that a country has a marginal tax rate of 20% at $100,000, and a rate of 30% that kicks in at $120,000. If someone is earning $150,000, they will pay 20% tax on $120,000 of their earnings, and 30% on $30,000. This is because they only pay the higher rate on every dollar over that threshold. I hope that makes sense...
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because what matters is the incentives you face at the margin.
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protectionist trade barriers has cost Australian society $9.1 billion: http://www.pc.gov.au/research/annualreportseries/tar0607
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Outline ONE demand factor and ONE supply factor that has contributed to economic growth in the economy between 2000-01 to 2006-7.
Outline ONE demand factor and ONE supply factor that has contributed to restrainingeconomic growth in the economy between 2000-01 to 2006-7.
Anyone one help on answering these ones? ;) Much appreciated.
For the demand factor contributing to growth, you can use things like growth in China (therefore growth in demand for minerals, etc.) as a demand factor, and the lowering of business tax from 32% to 30% in 2000 (or maybe 2001? I forget) which means that businesses have been able to spend more on production.
For restraint in growth, maybe things like the high value of the Australian dollar reducing demand for exports and a supply factor could be the drought, which has limited some producer's ability to supply.