- Internal Code :
- Subject Code : ECON1020
- University : Macquarie University
- Subject Name : Economics
Principles of Economics - Answer 1
In this as the more expansion of the robots are used in comparison to the labourers, it would lead to the higher robots use and low labours use. As one could see that the robot's production has increased in comparison to the labour, one can see an inverse relationship (Kimbrough, 2017).
Principles of Economics - Answer 2
The industrial robots have expanded in the last couple of decades, as due to the economies of scale and due to the low factor price capital inputs (Klein, 2017). There has been an increased innovation due to which the prices of the robots raw materials have reduced and it has caused the declining robots prices to be produced. Also, with the economies of scale and the companies producing a lot with the lower costs, the prices of the robots have declined in comparison to the labours. Key innovation and the automatization are the prime reasons, that has replaced the human capital with the technological.
Principles of Economics - Answer 3
The diagram shows the more robots to be sued in the production facility, it would mean more windscreen to be produced and the PPC curve would be concave. The above concave PPC curve shows, the higher production of the windscreen (shown in the orange line), having the maximized combination of the two goods of the workers and the windscreen at the A point. Similarly, point B shows, higher workers hired and low windscreen production. therefore, at the A point, the Bruno would operate. It is due to the low costs production through the low priced robots that have been used (Howe, 2017).
Principles of Economics - Answer 4
- Angela’s bargaining power,
- Angela’s real wage, and
- Bruno’s profit.
From graph 3, given one can see that Angela's production has been replaced with the hiring of the more robots.
Angela Bargaining power-: As her job is easily replaced by the robots who can produce more and also can work per hour higher with the lower costs (Mastrorocco, 2020). Therefore, the bargaining power of Angela has reduced. Secondly, here Bruno ahs the more command, decision making to decide the allocation of resources and the production, so Angela has low power to negotiate (Arora 2020).
- Angela’s real wage, and
As the Angela wages have been cut due to the replacement of the more robots, therefore, to sustain she would also cut down her wages per hour. It would lead to a reduction in the real wages, as the production is still there with the robots which have to lead to an expansion in the market, but the workers like Angela have no money or low money to buy it.
- Bruno’s profit
Bruno profit would increase to the level of the maximizing returns, but in the long run due to the high unemployment in the market, as the robots have replaced the jobs, it would lead to low purchases of Bruno's products and low demand of the robots as well.
Principles of Economics - Answer 5
Bruno’s decision to use more of the robots and replacing the workers has to lead to Pareto non -optimization. The goods are allocated to the one person better off by making the other person worse off. Here the Bruno has allocated the resources to hire more robots has to lead to low costs, Bruno more welfare and making the Angelo and other workers facing jobs cuts and facing more worsening of the situation.
Principles of Economics - Answer 6
Bruno use of the Robots has not to lead to the fairer outcome, as the high use of the robots has caused declining jobs and low welfare of the labourers.
- the procedural justice of fairness
It is the legal principle of the fair decision making that could lead to effective decision making and be based on the overall welfare and be justified (Arora, 2020). It is defined as the cause of the general procedural fairness that aims to provide the decisions that can be consistent to the bias rule and it should be free from bias or apprehension from the other bias decision-maker (Mastrorocco, 2020).
- Consequentialist approach
Consequentialism means as the class of the normative that discusses the teleological ethical theories of how one can have the ethical conducts and can lead to the consequences on the others. It is the conduct of the one bass that can lead to the rightness or wrongness for the conduct of the other. It is the form of the consequentialist approach that could decide on how there can be a morally right action that would lead to how one can produce a good outcome (Mastrorocco, 2020).
Principles of Economics - Answer 7
As above we can see Angela has the wage rate of $ 25, if the Angela gets $50 instead of the $25, her leisure curve would turn backward (meaning she would leisure more and work less), but as her wages have reduced to $ 25, which is a reduction in the real wage shown in Part A of the graph, that means she has to work more and can leisure less.
- real wage-: the real wage would reduce to the low levels of $25 (Mastrorocco, 2020).
- utility-: Angela Utility would reduce to the low consumptions and spending power.
- free time, and-: Angela leisure time would reduce, as now with the $ 25 she has to work more.
- consumption-: She would have to reduce her additional expenditure on the consumption of the normal goods like of the chips, chocolates etc. and focus only on the necessary goods like bread, fruits, vegetables to survive.
Principles of Economics - Answer 8
Through the government intervention of the high taxes imposed on the robots, it would lead to high costing of the robots and automatically less demand of the robots would be there. For example, if the robots are sold at $ 25 and the Angelo per hour wage rate is $ 50, then the government has to increase the taxing over the robots, which would lead to high robots price, low sale and demand by producers and it would increase the overall welfare (Mastrorocco, 2020). The second way is through per unit limit purchase to 1-2 robots per producer. It would lead to equalizing the resources and not being overdependent on the automatization only.
References for War and Conflict in Economics
Arora, D. and Rada, C., 2020. Gender norms and intrahousehold allocation of labor in Mozambique: A CGE application to household and agricultural economics. Agricultural Economics, 51(2), pp.259-272.
Howe, K.S., 2017. The allocation of resources for animal health. Revue scientifique et technique (International Office of Epizootics), 36(1), p.35.
Klein, P.A., 2017. Economics: Allocation or valuation?. The Economy as a System of Power: Corporate Systems, p.9.
Kimbrough, E.O., Laughren, K. and Sheremeta, R., 2017. War and conflict in economics: Theories, applications, and recent trends. Journal of Economic Behavior & Organization.
McGregor, J.A. and Pouw, N., 2017. Towards an economics of well-being. Cambridge Journal of Economics, 41(4), pp.1123-1142.
Mastrorocco, N. and Di Cataldo, M., 2020. Organised Crime, Captured Politicians and the Allocation of Public Resources (No. tep0420). Trinity College Dublin, Department of Economics.
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