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ECO100 Economics for Business-The Global Financial Crisis

Provide an analysis of the differences between the Federal Government, a State Government and a Local Government Area (LGA) budget. (In my Case the city of Sydney) For the first question, you need to consult the ABS (Australian Bureau of Statistics) publication as described in the lecture:

The tables of interest are in the download section are Table 130 (for the Commonwealth or national Government) and Table 231 for NSW. Got to Table 1 (general operations) and Table 4 Expenditure by purpose. You are also asked to use
the annual report from a local government area (perhaps where you live or the City of Sydney) to provide some equivalent data (even though it will be hard to provide an exact comparison). The main aim here is to provide percentages rather than absolute numbers.

The second question uses a case I gave out in class in Lecture 1. I have repeated the text below:
• You are constructing a sewerage plant for a release area that will eventually have 100,000 households.
• A large plant, which can cater for 100,000 households, will generate substantial economies of scale. It can be built at a cost of $1,050 per household.
• A smaller plant that will cater for 50,000 households will cost $1,250 per household.
• The sewerage plant will be funded from rates. It is expected that 10,000 households per year will locate in the area. The sewerage rate is based on a metropolitan average and is $500.
I. Should you go for the cheaper(larger) plant
II. What are the pros and cons of each option
III. How would you decide.

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