2007 Economics Marathon (2 Viewers)

[ilovecommunism]

回复: Re: 2007 Economics Marathon

Next question:
Outline the costs of sustained economic growth and explain why it needs to be controlled at times.

lol... just according to my memory:

costs:
1. Environmental damage due to exhausting natural resources especially those non-renewable ones.

2. Deterioration of our CAD due to higher purchasing power of income (caused by appreciation or increase in income level etc.), which MIGHT then lead to a higher level of consumption on imports, increasing the amount of money flowing out.

3. In a more practical term, sustained Eco growth might increase inequality in the economy, because it sometimes might only benefit a certain group of people in society, not everyone. (Eg. increase in the volume and price of machanical exports might inject money into the economy, which can increase the rate of growth, while agricultural industry is suffering from a low level of demand for agricultural products)

lol... can't remember much... can anyone add more info into my answer...xD...

next question
What are the two main automatic-stablizers in Australia's economy? And then explain how they work.

 

[Sparcod]

that was a stupid question.

No, it's not. Sustained or ongoing economic growth may have its negative impacts on society (such as the environment and inequality of income, sometimes) as well as other economic indicators such as inflation and CAD.

 

[williamc]

The RBA attempts to keep economic growth at a sustainable range of around 3-3.5%. Through various microeconomic reforms the Australian government tries to increase the sustainable level of economic without the increase in inflation. Okun's law states the economic growth needs to be above 3.5% for Australia to make gains on its unemployment, becuase the level of economic growth needs to cancel out producivity increases and labour force increases. With an unsustainable level of economic growth problems arise. Such as high inflation, and negative nvironmental impacts (negative externalties). Therefore, it is important for the Australian government to keep economic growth in the target range of 3-3.5%. For the 2007-2008 financial year the government has predicted economic grrowth of 3.5% as the commodity boom is expected to peak mid 2007.

(without textbook coudl be wrong)

Q) Explain some government polcies or strageties used to protect the environment? (chapter 12.6 dixon)

 

[Amyjy]

Q) Explain some government polcies or strageties used to protect the environment

The policies are classified in three types.
1) Voluntary action - they ask producers and consumers to willingly undertake action, and the govt may decide to facilitate these actions (e.g. may put bins around or place fines on certain activities)

2) Direct Action - discouraging activities by law. i.e. placing bans on activites, putting certain standards things must adhere to etc.

3) Market Based Measures - Try to make finance instruments and market mechanisms more effective. (they may alter price of an input or output in order to change equilibrium quantity i.e. taxes, subsidies, charges, fees)

Can anyone join this?? i am really struggling with eco at the moment.... i hope that sort of answered your question?

 

[Conspirocy]

okay so no one asked a question so i'll think of one to get this up and cracking

Outline the impacts of globalisation.

I could never answer this one in my hsc.

 

[PaulYe]

globalisation has many impacts on both australia and almost every other country in the world..... there's just too many to name, but i'll list 2

- globalisation exposes local firms to foreign competition, leading to a more efficient allocation of resources and forcing economies to mainly produce at their comparative advantage. This leads to lower cost of production, lower prices and better quality.

- Countries that are involved in the globalisation process, ie floating exchange rate, can sometimes become vulnerable to instability in other economies (contagion) and speculators. eg the thai exchange rate collapse which lead to the asian financial crisis, and most recently, the 10% depreciation of Mac bank which is indirectly due to the plummeting US house market..

 

[Sparcod]

Magpam- once you've answered the question, then ask a question for the next poster.

Next Question:

Distinguish between cyclical, structual and frictional unemployment.

 

[blakegman]

Isses concerning BoP

1.Highest CAD as a % of GPD in all OECD countries ( i think)
2.Net incomes deficit resulting in self perpetuating debt cycle (something like that)
3.CAD restraining $A appreciation as investors have concerns
4.Deficit in foreign liabilities
5.potential to cause structural change and thus structural unemployment
6.imports higher then export revenue - inflationary pressure


all i can think of, some might be wrong

 

[moey16]

Q. distinguish between the product and factor market

PRODUCT MARKET: A market used to exchange a final good or service.

Product markets exchange consumer goods purchased by the household sector, capital investment goods purchased by the business sector, and goods purchased by government and foreign sectors.

A product market, however, does NOT include the exchange of raw materials, scarce resources, factors of production, or any type of intermediate goods. The total value of goods exchanged in product markets each year is measured by gross domestic product.

The demand side of product markets includes consumption expenditures, investment expenditures, government purchases, and net exports. The supply side of product markets is production of the business sector.

FACTOR MARKET: A market used to exchange the services of a factor of production: labor, capital, land , and entrepreneurship.

Factor markets, also termed resource markets, exchange the services of factors, NOT the factors themselves. For example, the labor services of workers are exchanged through factor markets NOT the actual workers.

Buying and selling the actual workers is not only slavery (which is illegal) it's also the type of exchange that would take place through product markets, not factor markets. More realistically, capital and land are two resources than can be and are legally exchanged through product markets.

The services of these resources, however, are exchanged through factor markets. The value of the services exchanged through factor markets each year is measured as national income.


(Source AmosWEB Glosarama)


What is the difference between absolute advantage and comparative advantage as a basis for trade ? ( 6 marks ) ( question selected from "Economics Short Answer Section" paper of the forum)

 

[lilkiwicutie89]

*bump*

Some of you may find this thread more useful now that HSC Exams are coming up - good practice. In previous years members have started this thread around HSC time as a way to study together and refine their understanding of the HSC Eco course


moey16's previous question:
What is the difference between absolute advantage and comparative advantage as a basis for trade ? ( 6 marks ) ( question selected from "Economics Short Answer Section" paper of the forum)

agreed without wings.. it was awesome playing =]=]

 

[fishy89sg]

yay its time to get economical

 

[williamc]

*bump*


What is the difference between absolute advantage and comparative advantage as a basis for trade ? ( 6 marks ) ( question selected from "Economics Short Answer Section" paper of the forum)

Comparative advantage is where an economy has the lowest opporunity cost of producing that certain good. Also known as "efficient allocation of resources", or "specialisation". Ie. it costs australia 5 cars of production to make 10 apples, but it costs China 1 car of production to make 100 apples. WIth no artifical protection, obviously Australia wouldn't produce the apples as they have the greater opportunity cost. China would produce the apples and export them to australia. China is seen to have the greater comparative advantage.
I havn't learnt what an absolute advantage is.. lol i hope thats not in the syallbus. But as a stab, here an economy has an an absolute advantage over another in producing a good, if it can produce that good using less resources than another country.(lower opp. cost)

Which is the same thing.

Question: Explain the "crowding out" phenomon.

 

[blakegman]

Question: explain the "crowding out" phenomon

the crowding out effect is a concept/term used to describe the situation in Australia where the government and private sector compete for funds causing a shortfall of domestic savings and causing borrowers to obtain debt finance from overseas. This usually occurs when the government is/has run a deficit budget and sold government securities to obtain the finance to do so, thus leaving less funds available for the private sector to borrow from.

something like that off the top of my head

Question: explain the "crowding in" phenomenon

 

[nod089]

Question: explain the "crowding in" phenomenon

As the government spends money, private industry must be prepared to provide the output demanded by the government. In order to do this businesses must invest in capital to increase their productivity. This is an effect of government spending wherein the government actually stimulates investment, thus "crowding in."


1. What is the shift in the $A from US$.55 to US$.60 known as? (1 mark)
2. What causes an increase in exchange rates? (3 marks)
3. Name TWO positive and TWO negative effects of an increasing exchange rate. (4 marks)

 

[ingenious]

1. What is the shift in the $A from US$.55 to US$.60 known as? (1 mark)
appreciation of the Australian Dollar

2. What causes an increase in exchange rates? (3 marks)
Greater demand for a certain curreny relative to its supply
This demand may be caused because there is
-need for currency to pay for exports
-greater investment opportunities in country (eg interest rates go up)
-speculation
Or supply could be contracted because people are less willing to sell

3. Name TWO positive and TWO negative effects of an increasing exchange rate. (4 marks)
+ reduced pressure on inflation (imports are cheaper)
+reduced international debt in terms of Australian dollars
-More expensive to pay for (Australian) exports by other countries, so demand for exports fall
-Reduced foreign investment into country as it is more expensive



Next Question: What impact do trading blocs have on thet global economy?

 

[anirudh18]

where could u find the info for the 'impact of globalisation' on Australia?

 

[munchiecrunchie]

try an eco textbook (if you search excel hsc economics on google books you'll get a limited preview which is pretty much the whole book)

this thread is pretty awsum, its a shame it died out

i'll try and revive it:

Answering ingeniou's question: trading blocs have an effect of liberising trade amongst member countries, encouraging the removal of protectionist policies. The benefits of specialisation of labour flow onto member countries, who pursue their comparative advantage, increasing total output and hence increasing GWP and creating an improvement in living standards. They also create a variety of goods for consumers to choose from, and allow greater access to regional export markets.

However, trading blocs are preferential and only promote regionalism; they have in fact increased barriers to trade for non - member countries, hindering the globalisation process.

Question: Explain two economic arguments for protection.