This exercise is designed to familiarise you with some of the key economic concepts in the course. The task is to take one of the key concepts from the beginning of the course and relate it to the interests of social policy and research. First, choose one of the three readings below and the concept that goes with it. You will need to explain what the concept is and how the reading develops it. You then need to link this concept to a current policy or social research concern. For example, you might discuss how the division of labour relates to the paid care workforce, or to hospital reforms, or you might discuss how commodification applies to the delivery of social services, where the distinction between producer and consumer is less stark than for physical commodities. You are not expected to go into depth. Rather the exercise is designed to demonstrate your understanding and ability to apply concepts. Briefly explaining the key aspects of the concept and one potential implication is all that is required.

Remember too, this is a short exercise. It is not designed as a research assignment, although you may wish to refer to a few additional references. Instead the focus is on demonstrating that you understand the argument and can relate the concept to social analysis.

Division of labour. Smith, A 1952, An Inquiry into the Nature and Causes of the Wealth of Nations, London, Encyclopaedia Britannica, Chapters 1-3: 3-10.

Fictitious commodities. Polanyi, K. 1944, "The Self-Regulating Market and the Fictitious Commodities: Labor, Land, and Money," The Great Transformation: The Political and Economic Origins of Our Time, Boston: Beacon Press, 68-76.

Commodity fetishism. Marx, K. 1976 [1867], ‘The fetishism of the commodity and its secret’, Capital, vol. 1, London: Penguin, 163-177.

This assignment is linked to the Policy Analysis. The topic you choose in this assignment should be related to the policy you analyse in the next assignment. The task here is to engage with a significant economic and policy debate. In the next assignment you discuss how the current policy discussion has utilised economic arguments and frameworks. But here, you are focused on the issues in a more general sense. This is a research task, so you are expected to read widely, and to go beyond the material presented in this course outline.

The aim of this exercise is to demonstrate an understanding of how an economic issue impacts on social relationships, and to ground your analysis in a firm research base. The broader research done here should also assist in the next assignment. This task should be structured as an essay. Select one of the following topics, or see the convener to develop your own topic by week 4.

1. How can we explain women receiving lower incomes, in general, than men in rich, developed economies? What implications does this have for social policies aimed at promoting support for care work?

2. In most OECD countries income inequalities have been increasing over the past 30 years. Hoe might we explain this increase in inequality and what policies might be needed to reduce inequality?

3. What evidence is there that global inequality is declining? How might we explain the decline of global inequality? Does this demonstrate the benefits of market competition?

4. Can continued economic growth be made consistent with ecological sustainability? What types of economic reforms likely to promote ecological sustainability?

5. How has the increasing reliance on financial instruments and personal debt to manage economic affairs affected the economic security of workers? In what ways have government policies influenced the trend towards ‘financialisation’?

6. Is fiscal austerity limiting the ability of governments to respond to democratic demands? To what extent have budgetary pressures from existing welfare state programs constrained the ability of new social programs to adjust for changing circumstances?

In this assignment you will explore the application of market economics to social and environmental policy making. You will need to select a case study where policy has changed (or is proposed to change) to provide a greater role for market forces in the production or allocation of resources. This should ideally be related to the topic of your last assignment.

Your analysis will need to outline the policy changes and the rationale for the change. You should then explore the effects (or predicted effects) of the policy change and address arguments both in favour and against the policy change. You should conclude by suggesting ways forward, has the policy been effective and what might make it more effective?

Below are a few examples you might wish to choose. You can also choose a different topic.

• The decision to grant equal pay for care workers in 2012
• The Clean Energy Future package or the European Emissions Trading Scheme
• The introduction of HECS
• The private health insurance rebate and proposals to means test this
• Water privatisation in Bolivia
• Increasing the compulsory contributions to superannuation
• The first home savers scheme