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What are the reasons for, and costs and benefits of microeconomic reform for Australia? Evaluate its effectiveness.
In Australia, MER has worked towards improving the productivity and competitiveness of the economy. It appears that the social costs of MER have outweighed the economic benefits. However the positive aspects of reform can be seen more readily in the long-term, if we can control the rate at which reform occurs, and share the benefits more evenly.
Microeconomic reform is defined as 'the changes in government policy directed at improving the efficiency of use and allocation of Australia's resources'. This suggests that MER is about making the Australian economy work better for Australia's ow…
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- What are the reasons for, and costs and benefits of microeconomic reform for Australia? Evaluate its effectiveness.
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