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Economics for Decision-Making - Doc

   

Added on  2021-05-31

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Running head: ECONOMICS FOR DECISION MAKINGEconomics for decision-makingName of the studentName of the universityAuthor Note

1ECONOMICS FOR DECISION MAKINGTable of ContentsAnswer A:..................................................................................................................................2a).............................................................................................................................................2b)............................................................................................................................................2c).............................................................................................................................................3d)............................................................................................................................................3Answer 2:...................................................................................................................................3a).............................................................................................................................................3b)............................................................................................................................................4c).............................................................................................................................................5Answer 3:...................................................................................................................................7a).............................................................................................................................................7b)............................................................................................................................................8c).............................................................................................................................................8References:...............................................................................................................................10

2ECONOMICS FOR DECISION MAKINGAnswer A:a)Underemployment: underemployment measures employment and utilisation oflabour within an economy for analysing that how this economy has utilised its labour forcebased on their skills, availability of work and experience (Angrave & Charlwood, 2015).Underemployment have different forms, for instance, high skilled workers doing low skilljobs, high skilled workers but doing jobs with lower salary and part-time works who deservefull-time jobs. Marginal Attachment to the Labour Market: This concept considers those people,who are not included in the labour force at present but want to work and want to be employed(Hunter & Gray, 2017). For instance, seasonal workers can be referred as marginally attachedworkforce during the off-season as they do not want to work during this season. Hence, underemployed persons are a part of workforce while marginally attachedpeople are not. b)i) Unemployment rate = (number of unemployed person/ total work force) * 100 (Katz &Krueger, 2017)Where, unemployment rate is 7.5% and total work force is 165,475.Hence, number of unemployed person = 7.5% * 165,475number of unemployed person = 12410.62Hence, the number of unemployed person is almost 12411.ii) Labour force participation rate = (Number of people actively participate in the labourforce/ total number of people eligible to participate in the labour force) * 100Here, number of people actively participate in the labour force are (total workforce –number of unemployed person) = (165,475 – 12411) = 153064

3ECONOMICS FOR DECISION MAKINGHence, labour force participation rate = (153064/ 196,547) * 100labour force participation rate = 77.88%c) Labour force consists with the number of employed and the number of unemployedperson (Holland & de Valk, 2017). The size of the labour force has increased by 20000people while the number of unemployed people does not change.Hence, total labour force becomes 165,475 + 20,000 = 185475 The new unemployment rate is 12411. Hence, the number of unemployed person is :Unemployment rate = (12411/ 185475) * 100Unemployment rate = 6.69 %d)In the given scenario, Ben is structurally unemployed. Structural unemploymentoccurs when the skills offered by the person and the skills demanded by the employers fortheir workers do not match (Gozgor, 2017). Here, Ben offers his PhD skills but the employersmay want to hire workers with lower skills. Answer 2:a)The Reserve Bank of Australia plays some vital roles, which are mentioned below("Our Role | RBA", 2018):Conducts monetary policyMaintain a strong financial systemIssues currency of Australia, that is, Australian dollarMaintains gold and foreign exchange reserves of this country

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