Section I - Multiple Choice (1 Viewer)

[Darth_Duplicity]

I think Q7 is D. An increase in superannuation doesn't mean employers actually pay more and hence no cost inflation. It just means they take a larger proportion out of the employees wages. This means employees have less money, reducing demand inflation. But that's just my opinion.

 

[AnimeX]

I put:

1. A
2. B
3. C
4. C
5. A
6. B
7. B or D forgot
8. A
9. D (I had C but changed idk why)
10. D
11. A
12. B
13. B
14. B
15. B
16. D
17. A
18. C
19. C
20. C

 

[Renegader]

I think Q7 is D. An increase in superannuation doesn't mean employers actually pay more and hence no cost inflation. It just means they take a larger proportion out of the employees wages. This means employees have less money, reducing demand inflation. But that's just my opinion.

As far as I know sure super is on top of wages, so they get 3% extra of their income contributing to superannuation.

 

[shanegale1]

can someone explain to me how 18 is D) since a decrease in world oil supply would decrease it's prices - effectively reducing cost-push inflationary pressures since it's a factor of production which encompasses literally everything????? why would the inflationary impact of a change in oil prices be discarded with the underlying annual inflation rate if it's inflationary effects would be felt in every good weighted in the CPI? please respond nerds.

 

[rainlewis]

I think Q7 is D. An increase in superannuation doesn't mean employers actually pay more and hence no cost inflation. It just means they take a larger proportion out of the employees wages. This means employees have less money, reducing demand inflation. But that's just my opinion.

It is the employer's responsibility to contribute superannuation into their employees' funds. Therefore, an increase in the compulsory contribution from 9% to 12% would be the cost of hiring workers has increased. Labour being a factor of production, the rise in the cost of labour would cause an increase in cost-push inflation and thus the answer cannot be D.

 

[Renegader]

can someone explain to me how 18 is D) since a decrease in world oil supply would decrease it's prices - effectively reducing cost-push inflationary pressures since it's a factor of production which encompasses literally everything????? why would the inflationary impact of a change in oil prices be discarded with the underlying annual inflation rate if it's inflationary effects would be felt in every good weighted in the CPI? please respond nerds.

A decrease in supply increases price. An increase in supply decreases price, therefore it's D.

 

[shanegale1]

A decrease in supply increases price. An increase in supply decreases price, therefore it's D.

oops sorry i meant to say can someone explain to me how 18 is D) since a increase in world oil supply would decrease it's prices - effectively reducing cost-push inflationary pressures since it's a factor of production which encompasses literally everything????? why would the inflationary impact of a change in oil prices be discarded with the underlying annual inflation rate if it's inflationary effects would be felt in every good weighted in the CPI? please respond nerds.

can someone please explain to me this im still lost towards how d is correct

 

[lochnessmonsta]

oops sorry i meant to say can someone explain to me how 18 is D) since a increase in world oil supply would decrease it's prices - effectively reducing cost-push inflationary pressures since it's a factor of production which encompasses literally everything????? why would the inflationary impact of a change in oil prices be discarded with the underlying annual inflation rate if it's inflationary effects would be felt in every good weighted in the CPI? please respond nerds.

can someone please explain to me this im still lost towards how d is correct

So the underlying rate of inflation is essentially the headline rate without any volatile, one-off price movements e.g bananas after Cyclone Yasi, etc.

So if the headline rate of inflation drops whilst the underlying rate of inflation stays the same, it means there was a drastic, volatile drop in one or more goods or services. Then think about house prices and oil prices - oil prices are much more volatile than house prices, hence it was more likely that oil prices caused the fall in inflation. Since increase in supply forces a drop in prices, the answer is d.

 

[Ace95]

Here are what I think the answers are for the MC 2013 paper are:

1. A
2. B
3. C
4. C
5. A
6. C
7. A
8. A
9. C
10. D
11. A
12. B
13. C
14. B
15. B
16. D
17. B
18. A
19. D
20. D

My version:

1. A
2. B
3. B
4. C
5. A
6. B
7. A
8. A
9. C
10. D
11. A
12. B
13.C
14. B
15. B
16. D
17. B FUCK
18. D obviously
19. d
20. B

 

[Bigmaka]

Hmmmmmm I think 3 is B because HDI is measured by GDP per Capita...
I also think 15 is C because regardless if the MPC has fallen, the simple multiplier is still greater than 1 so equilibrium income will increase, just not as much....