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HI5003 - Economics For Business- Report

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Holmes Institute Sydney

   

HI5003 Economics for Business (HI5003)

   

Added on  2020-03-01

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The below document discusses the the various concepts of microeconomics.The various concepts of the microeconomics which have been discussed in this report are  "Monopolies, Duopoly and Oligopolies in Australia", "Demand and supply of certain resources in Australia" and more.

HI5003 - Economics For Business- Report

   

Holmes Institute Sydney

   

HI5003 Economics for Business (HI5003)

   Added on 2020-03-01

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ECONOMICS FOR BUSINESS1Reforms in Education Industry in AustraliaStudent’s nameCourse IDUniversityDate
HI5003 - Economics For Business- Report_1
ECONOMICS FOR BUSINESS2In terms of economic development, developed countries are constantly upgrading and updating their education system framework. Based on the experts' review, the Australian government has taken the initiative to introduce higher education reforms to strike the right balance. In the selected article, Watson et al. (2017) reviewed the reforms done on the higher education system in Australia. According to the article, the recent higher education system reform will save AU$ 2.8 billion for the Australian government over the next five years. In the meanwhile, the Federal budget introduces the higher education reforms as the government has confirmed significant cuts in the educational packages. Precisely, under the new reforms, students will have to pay more amounts to complete their higher education courses. The announcement of the government mostly impact the students seeking higher education in Australia as university fees have been increased at a substantial rate between 2018 and 2021 (Watson et al., 2017). The latest education reform announced in the Federal budget will significantly benefit the Australian government although hike in prices in higher education will add excess burden on the students. In this particular study, the economic impact of the higher education system reform in Australia has been analysed providing evidence.In the recent Federal Budget announced by the government of Australia, it is proposed to increase students’ contribution in the higher education system. In terms of percentage, the contribution of the students will be increased by 1.82 percent every year since 2018. In 2021, the contribution of student in the higher education will be enhanced by 7.5 percent (Bexley, 2017). Under the reform status, students have to pay 46percent instead of 42 percent contribution to obtain a degree in the universities. As per the estimations, the cost of a graduate degree in Australia will rise from $2,000 to $3,600 (Bexley, 2017). Apart from the rise in fees, the government will cut short teaching funding by 2018 in the next couple of years as well.
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ECONOMICS FOR BUSINESS3Through the scanning of the overall scenario, the repayment threshold of education loans will also be reduced. So, the students have to take extra burden to repay the loans faster under Higher Education Contribution Scheme. In the reform, the government has estimated to include 2.5 percent efficiency dividend in 2018 and 2019 (Watson et al., 2017). Evidently, the government has proposed school funding to be boosted by $18.6 billion over the next ten years. Under the current circumstances, the impact of the higher education reform on Australian economy has been described as follows.The Australian Education sector is estimated to rank as the third largest export category earner for the economy. According to the Australia Bureau of Statistics, every international (including their family and friends visitors) contributes around $28,921 annually to the Australian economy (Waud, 2015). Hence, it can be seen that the Australian Higher Education Sector is one of the major revenue generating industry for the economy. By considering the fact of increasing price of higher education in Australia, it is expected by the economist that a fall in the quantity demanded by the international students can be evident in the upcoming future. Though the Australian Government is expected to save around AU$ 2.8 billion in the next five years, the fall in the demand for higher education among the international students in Australia will definitely impact the revenue earned by the other industries in terms of education services (Turpin, 2016). By applying the theory of demand it can be clearly seen that the hike in the price for higher education in Australian market will directly impact the quantity demanded by the student. For instance, an international student with limited resource will choose some other market for completing higher degree courses in place of Australia in order to successfully complete the study within the budget (Piracha, 2014). Hence, a hike in the price of higher education in
HI5003 - Economics For Business- Report_3

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