Impact of COVID-19 on Australian Economy

Impact of COVID-19 on
Australian Economy

Contents
Overview...............................................................................................................................................3
1. Evaluating concepts of scarcity, trade - offs and opportunity cost.....................................................3
2. Australian government policies of quarantine and social distancing affecting economy..................4
3. Australian economy depicting variables GDP growth rates, Inflation and Unemployment...............4
4. Economic policies implemented by Australian government..............................................................8
REFERENCES....................................................................................................................................10

Overview
COVID – 19 is an abbreviation of a disease which is caused by a new type of
coronavirus. Basically COVID – 19 is abbreviated from 'CO' which means corona, 'VI' stands
for virus, and 'D' for the disease. This disease was formerly referred to as '2019 novel
coronavirus' or '2019 – nCoV’. The COVID - 19 pandemic has created huge loss resulting in
global economic shock having unprecedented proportions.
1. Evaluating concepts of scarcity, trade - offs and opportunity cost.
Because of such evolving uncertainty as arises due to the coronavirus (COVID-19)
pandemic, it has created a negative impact on the Australian economy too. Also, many small
scale companies and businesses had been affected in an unprecedented manner. For better
understanding of economic crises under which Australia is going through, concepts of
scarcity, trade - offs and opportunity cost are better sources.
Scarcity – Due to COVID – 19 pandemic, shortage of resources has been started in
Australian economy creating problem of proper and efficient allocation of scarce resources.
Because of lockdown and social distancing concept, shortage of supply as compared demand
has started thus resulting in gap between limited means and unlimited wants in the economy
(Chang and et.al., 2020). For mitigating resource scarcity in form of food, raw materials etc.
the Australian government needs to focus on economic growth and focus on managing
resource usage wisely.
Trade offs – It comes up with sacrifices which every economy has to make so as to
obtain desired goals. . By making clear understanding of trade off concept by the Australian
government related to every decision, it has helped in ensuring resources are being used
wisely to cope up with such epidemic situation. Also, it will help economy in making
consistent strategy for making better decision by emphasizing on particular strategic priority
of long term nature i.e. COVID – 19.
Opportunity cost – By analysing current situation, the Australian government has
emphasizes on its opportunity cost so as to maintain smooth relationship in between scarcity
and choice. Australian Government has budgeted an amount of $200 billion for dealing with
coronavirus crisis for free childcare and additional health system.