Economics Marathon (1 Viewer)

[forthehsc]

This isn't really part of the thread i guess...but what's the quickest way to revise everything for economics and what should i be focusing on the most?

 

[aphorae]

This isn't really part of the thread i guess...but what's the quickest way to revise everything for economics and what should i be focusing on the most?

depends on what you've been doing badly in -> whichever section you did worst in trials

do essay plans if you fail at essays
do lots of mc from the workbook or hsc online if you fail at mc
do short answers if you fail at short answers or don't know your content well enough

i usually do short answers and there will be a running trend e.g. T1/T2 ones I can answer really quickly, T3 takes a little longer, but T4 labour ones take me a while, so when you notice something like that, go and relearn/revise that topic/chapter

 

[aphorae]

a business buying machinery or whatever is considered an investment in a business sense not economics
i wouldve thought a but it doesnt say who by
and c seems most correct because its a foreign something purchasing something in australia and its reversible

p.s. what did you think the I in AD = C + I + G + (X - M) meant in an economic sense if it didn't mean businesses buying machinery etc.?!

Mind sharing them mate?, kind of running low on trials

k i'll upload them later tonight or tmr

 

[aphorae]

Is there an unanswered question? idk, here's some more

1. Why is Australian expenditure on development aid often ineffective?
(A) Developing countries already determine international technological transfers.
(B) Australia is always able to influence the direction of investment within a developing country.
(C) It fosters low income countries' dependency on Australia
(D) Low income countries have open access to Australia's domestic markets

2. If Australia's import prices increase slower than Australia's export prices, which of the following statements is certainly correct?
(A) Australia's balance of trade has improved.
(B) Australia's exchange rate has depreciated.
(C) Australia's current account is in surplus.
(D) Australia's terms of trade have improved.

3. What is the likely effect of a depreciation of the Australian dollar against all of Australia's major trading partners' currencies?
(A) Australia's inflation rate would increase
(B) The Trade Weighted Index would increase.
(C) Australia's international competitiveness would fall.
(D) Australia would suffer a slowdown in economic growth.

 

[hup]

p.s. what did you think the I in AD = C + I + G + (X - M) meant in an economic sense if it didn't mean businesses buying machinery etc.?!

lol i never thought about it my bad

 

[hup]

Is there an unanswered question? idk, here's some more

1. Why is Australian expenditure on development aid often ineffective?
(A) Developing countries already determine international technological transfers.
(B) Australia is always able to influence the direction of investment within a developing country.
(C) It fosters low income countries' dependency on Australia
(D) Low income countries have open access to Australia's domestic markets

2. If Australia's import prices increase slower than Australia's export prices, which of the following statements is certainly correct?
(A) Australia's balance of trade has improved.
(B) Australia's exchange rate has depreciated.
(C) Australia's current account is in surplus.
(D) Australia's terms of trade have improved.

3. What is the likely effect of a depreciation of the Australian dollar against all of Australia's major trading partners' currencies?
(A) Australia's inflation rate would increase
(B) The Trade Weighted Index would increase.
(C) Australia's international competitiveness would fall.
(D) Australia would suffer a slowdown in economic growth.

1c
2d
3a

 

[aphorae]

1c
2d
3a

yup ~

btw what is 'balance of trade' ? is that just volume of X and M?

 

[hup]

yup ~

btw what is 'balance of trade' ? is that just volume of X and M?

yes but it is in price not volumes

 

[Aindan]

yup ~

btw what is 'balance of trade' ? is that just volume of X and M?

are those the answers that agreed with a textbook?
also yeah balance of trade is just the net result of X -M

 

[aphorae]

are those the answers that agreed with a textbook?
also yeah balance of trade is just the net result of X -M

no they just fit with my own lol... idk i did a process of elimination, the answers don't fit with any of the other available options -> I can explain each one (well... I thought I could... why, is there one that seems dodgy?)

wait so just to confirm, the balance of trade the total net value of X - M right?

 

[forthehsc]

What is the equilibrium level of income if C= 50+ 0.8Y and I=70
(a) 200
(b) 600
(c) 120
(d) 800

How would you figure this one out?

 

[hup]

What is the equilibrium level of income if C= 50+ 0.8Y and I=70
(a) 200
(b) 600
(c) 120
(d) 800

How would you figure this one out?

answer is b

 

[aphorae]

Can they actually ask us that? I thought that was extension. Or preliminary. Idk.

But anyway:
S = -50 + 0.2Y
S = I
-50 + 0.2Y = 70
0.2Y = 120
Y = 600

B)

 

[Bobbo1]

What is the equilibrium level of income if C= 50+ 0.8Y and I=70
(a) 200
(b) 600
(c) 120
(d) 800

How would you figure this one out?

just remember that Y = C + I = C + S, i also struggled with this (even after 4 unit maths - the gimmicky eco formulas can catch u out

 

[aphorae]

Ummmmmmm.

Informal questions.

Briefly outline the main methods of dispute resolution (3 marks).

Discuss arguments in favour of decentralisation (of the labour market) (3 marks).

Discuss arguments against decentralisation (of the labour market) (3 marks).

^ dot points is fine.

 

[forthehsc]

Arguments for decentralisation:
- more efficient allocation of resources and structural change
- promotes productivity
- wage flexibility allows the labour market to adjust when the economy is affected by negative shocks.

Arguments against decentralisation:
- there's greater inequality
- wage-push inflation may not be able to be prevented when eco growth is strong and the labour market is close to full employment

There are 2 main methods of dispute resolution:
Conciliation - this is a process in which firms and employees meet to discuss their differences in the presence of a third party
Arbitration - a process of dispute resolution in which an industrial tribunal hands down a legally binding ruling to firms and employees. This occurs only if conciliation doesn't resolve the issue

 

[forthehsc]

Explain how the reform of Govt. enterprises could lead to an improvement in Australia's current account (4 marks)

 

[aphorae]

Arguments for decentralisation:
- more efficient allocation of resources and structural change
- promotes productivity
- wage flexibility allows the labour market to adjust when the economy is affected by negative shocks.

Arguments against decentralisation:
- there's greater inequality
- wage-push inflation may not be able to be prevented when eco growth is strong and the labour market is close to full employment

There are 2 main methods of dispute resolution:
Conciliation - this is a process in which firms and employees meet to discuss their differences in the presence of a third party
Arbitration - a process of dispute resolution in which an industrial tribunal hands down a legally binding ruling to firms and employees. This occurs only if conciliation doesn't resolve the issue

gj

Explain how the reform of Govt. enterprises could lead to an improvement in Australia's current account (4 marks)

Microeconomic reform of government enterprises can lead to increased efficiency and international competitiveness, thus leading to increased export potential and a possible improvement in Australia's current account. Through corporatisation, government enterprises behave more like private sector businesses through the removal of political supervision and possible subjection to increased competition. Managers are made responsible for the performance of these enterprises, thus providing them with a profit motive, and encouraging increased efficiency. Through privatisation, government enterprises are sold off to the private sector, which similarly encourages efficiency through increased competition. These methods of microeconomic reform improve domestic efficiency, increasing our productive capacity and export potential as firms become more competitive, thus leading to an improvement in Australia's current account through improving the BOGs.

^ can you check if this is right or suggest ways to improve/how to structure, it's a bit wordy cus i'm bs'ing -> i'm not as confident with labour/businesses ... dunno if this is right

 

[aphorae]

Here are some more questions for anyone hanging around:

Analyse the possible consequences of a volatile exchange rate on an economy (3 marks).

Suggest a reason why the central bank of an economy may decide to implement a fixed exchange rate system (2 marks).

Outline the risks of operating a fixed exchange rate system (3 marks).

^ again, dot points is fine

 

[hup]

Here are some more questions for anyone hanging around:

Analyse the possible consequences of a volatile exchange rate on an economy (3 marks).

Suggest a reason why the central bank of an economy may decide to implement a fixed exchange rate system (2 marks).

Outline the risks of operating a fixed exchange rate system (3 marks).

^ again, dot points is fine

1 financial instability
- discourages investment
- weakened consumer confidence
- limits prospects for sustained growth

2.

to artificially maintain competitiveness of exports
eg regularly growth is high leads to an appreciation which would shrink export sales and reduce growth
but by keeping exch rate low the bank can allow economy to have sustained growth

3.
-will deplete reserves of foreign currency/gold
-then can cause collapse of currency's value