2006 MC question7 HELP (1 Viewer)

[pinkkate1406]

hey guys

in the 2006 HSC eco paper q7 says:

wait it has a diagram so here is the link to it:
http://www.boardofstudies.nsw.edu.au/hsc_exams/hsc2006exams/pdf_doc/economics_06.pdf

can someone please explain to me why the quota has decreased, when i thought it had increased?

 

[pinkkate1406]

wait i just looked on the test yourself hsc q's and this one has been taken out...im guessing because it was confusingly worded?

 

[bmn]

The quota has decreased before there is less supply, ie more limited.

For example, it was 1000, but now its 800.

 

[pinkkate1406]

but because of limited supply, wouldnt that mean the quota (ie restirction on imports) has increased?

 

[pinkkate1406]

like it has become morrre limited.

 

[bmn]

I understand where your coming from, but the quota refers to the number allowed in.

 

[pinkkate1406]

right. so it has decreased, meaning less allowed in.

 

[imoO]

I got another question from the same paper...

question 20 - isn't absolute equality 0 and absolute ineqaulity 1?

so why the heck is the answer B?

 

[mrhorseham]

yes ur right, but it shows the gini coefficient from 2003-2006 decreasing (getting closer to 0, thus moving towards equality), then in the answers the one that would create a more equal distribution of income would be B an increase in welfare payments. (giving low income earners more money)

 

[pinkkate1406]

I got another question from the same paper...

question 20 - isn't absolute equality 0 and absolute ineqaulity 1?

so why the heck is the answer B?

ooh i got caught on this one too. but its not at 2003, its from 2003. so gini is reduing... meaning more equal
meaning they must have increassed welfare?
does that explanation make sense

 

[imoO]

EDIT - crap you're right...

brain lapse...
my bad