Economics Trial exam Questions and results

[costargh]

I just thought commodities is a factor of production so it mainly affects supply side. (lower costs of production, could mean a supply boost)

I disagree.
I don't see how lower costs of production for product A will result in an increase in supply for product B. However, lower costs of production will allow the producers of product A to produce more, increasing supply.

I just thought of something. This question is VERY ambiguous (even more ambiguous than I first thought!)

It doesn't specify whether the fall in production costs is relevant to BOTH businesses or just the business that experiences the decrease in the price of its commodities.

This question wouldn't get through VCAA's rigorous MC selection process ( i just made that up... i have no idea if it is rigorous or not lol)

[brendan]

That is a really shitty question, it doesn't make a distinction between:
(a) a shift in the demand/supply curves
(b) a change in the quantity supplied/demanded.

[ReVeL]

Yep I think it has been universally established - it was a shit question.

[ReVeL]

Just wondering if this is an adequate definition of External Stability:

External Stability is achieved when Australia is able to 'pay its way' in international financial transactions without these payments abroad causing downward pressure on the exchange rate.

Its from the textbook, but it seems sort of vague, I dunno. Is it ok?

[cobby]

Just wondering if this is an adequate definition of External Stability:

External Stability is achieved when Australia is able to 'pay its way' in international financial transactions without these payments abroad causing downward pressure on the exchange rate.

Its from the textbook, but it seems sort of vague, I dunno. Is it ok?

I think its a good definition
This is what mr wood had
"the phrase “external stability” refers to a situation in which the Australian economy is able to meet its international financial commitments"
Kinda basic but yehh i like his one too

[marbs]

According to Mr Woods, and TSSM

As the gini coefficient goes closer to 1 it becomes more inequitable
Closer to 0 = equitable

Is this right?


But this contradicts; the 2002 q.12 example.

http://www.vcaa.vic.edu.au/vce/studies/economics/pastexams/economic2002.pdf

I put A, but the answer is C

[ReVeL]

If the gini coefficient equals 0, then we have total equality, with everyone earning exactly the same amount.

Question is:
After examining the above table, which one of the following statements about the distribution of income is not
correct?
A. The distribution of income has become less even since 1989–90.
B. The top 20% of income units have been increasing their share of total gross income.
C. The Gini coefficients confirm that the distribution of income has become more equitable.
D. The top 20% of income units received nearly half of the total gross income in 1999–2000 whereas the
bottom 20% of income units shared less than 4%.

A is correct because the gini coefficient has INCREASED(therefore more unequal).
B is correct because the top 20% have been increasing there share of the toal income(46.1 to 47.9 to 48.5).
C is incorrect because the gini coefficient has been increasing therefore income distribution is becoming LESS EQUAL.
D is correct, just looking at the table.

Bear in mind the question asks for what is NOT correct. Therefore answer is C.

[marbs]

If the gini coefficient equals 0, then we have total equality, with everyone earning exactly the same amount.

Question is:
After examining the above table, which one of the following statements about the distribution of income is not
correct?
A. The distribution of income has become less even since 1989–90.
B. The top 20% of income units have been increasing their share of total gross income.
C. The Gini coefficients confirm that the distribution of income has become more equitable.
D. The top 20% of income units received nearly half of the total gross income in 1999–2000 whereas the
bottom 20% of income units shared less than 4%.

A is correct because the gini coefficient has INCREASED(therefore more unequal).
B is correct because the top 20% have been increasing there share of the toal income(46.1 to 47.9 to 48.5).
C is incorrect because the gini coefficient has been increasing therefore income distribution is becoming LESS EQUAL.
D is correct, just looking at the table.

Bear in mind the question asks for what is NOT correct. Therefore answer is C.

lol yeh I misread the question. thanks mate. Good luck

[ReVeL]

Is the move away from the centralised wage system to Workplace Agreements negociated on a firm by firm basis an example of labour market deregulation or Industrial Relations reform? Or both?

:/

[marbs]

Is the move away from the centralised wage system to Workplace Agreements negociated on a firm by firm basis an example of labour market deregulation or Industrial Relations reform? Or both?

:/

im pretty sure that industrial relations are a part of labour market reform.

Basic Summary of Labour market reform from my notes
----------------------------------------------------------------------------------

In the early 1990’s Australia’s labour market moved towards enterprise bargaining.
By 1996 this was enshrined in the Workplace Relations Act.
The main attempt was to make wage negotiations decentralised, to lower the influence of the unions.
Further reforms were introduced in 2006 with the Workchoices legislation.
Aim is to improve productivity and flexibility of the work force.
The concept of enterprise bargaining is the main element of the reforms.
This means that each workplace should be able to have meetings between employers and employees to negotiate direct pay rises, based on productivity improvement.

[ReVeL]

Ahh ok, cheers.