MER

Q2. Australian Microeconomic Reform
· The meaning of microeconomic reform
· The objectives of competition policy
· Microeconomic reforms that have occurred in Australia during the last two decades
· Industries and sectors that face future microeconomic reform and structural change

Microeconomic Reforms are the actions taken by the government to improve resource allocation between firms and industries within the economy, in order to maximise output from scarce resources. Microeconomic reforms have played a central role in economic policy in Australia since the early 1990s, as Australian governments recognised that extensive structural change was needed to deal with the structural problems in the economy. If these microeconomic reforms are used well, Australia’s economy will experience a shift in the supply curve, which is known as supply side economics. “Supply side economics… should have the effect of providing more goods and services at the same prices...