University of the South PacificFaculty of Business and EconomicsSchool of EconomicsSemester 2 2019EC102: Research Assignment
Question 1Microeconomics is the study of choices that individuals and businesses make, the way thosechoices interact in markets, and the influence of governments. One example of this could be“why are people buying more e-books and fewer hard copy books?” Thus this essay will bediscussing on the question as stated above stating on the two microeconomics issues faced bythe people ofFijiand what the government has done to overcome this problem.To begin with, the first issue that would be discussed is based onClimate Changeas it is oneof the major issues faced by the people of Fiji; it falls under microeconomics because climatechange is an issue which is faced by all individuals and businesses. As stated in theFijibudget 2019: Resetting the economy“Issues and problems related to Climate Change needsto be an important part of the budget”. The last three national budgets focused on nationalbuilding, rebuilding from the devastation left behind by storm TC Winston which tore apartparts of Fiji on February 20, 2016. This is one of the major issues in Fiji as they are still in aprocess of recovering. Moreover this led to increase in government expenditures, debt andbudget deficits.Furthermore, the second issue faced by the people of Fiji under microeconomics isUnemployment, where it dropped to lowest in 15 years. In Fiji, the unemployment ratemeasures the number of people actively looking for a job as a percentage of the labour force.Unemployment refers to when someone who is willing, able to work and is actively seekingemployment does not have a job. Unemployment would be regarded as one of the majorissues in Fiji because people will need job as the standard of living is high and they need it tofulfil their needs and unlimited wants.Therefore the Government of Fiji has been working on COP23 because global warming andclimate change were fundamental factors. Thus this development provides a forward lookingvision for transforming Fiji into a more progressive and inclusive society. As they are alsosupporting those needy people who lost all their belongings and household stuffs during theTC Winston storm. For the second issue, unemployment rate in Fiji has increased in 2018from 2017. Unemployment rate in Fiji averaged 4.95% from 1982 to 2018. Thus it simplyindicates that there will be more jobs for people in foreseeable future.
Question 2Economic Growth measures the increase in productive capacity of s nation. EconomicGrowth leads to an expansion in the production possibility. The performance of an economyis measured by the growth rate of real gross domestic product (GDP), which measures thevalue of all final goods and services produced in a country at a particular period of time,adjusted for price changes or inflation. Thus this essay will be discussing on what generates