Economics Trial exam Questions and results

[marbs]

To quote TSSM answers;

Millions of dollars have been poured into superannuation companies. With the deregulation of the financial system and the low Australian dollar the US stock market offered better returns than the Australian stock market. Australian based companies could borrow at a lower interest rate from overseas than from Australian superannuation funds

Deregulation of the financial system removed the reserve bank control over cash inflows and cash outflows making borrowing from an investment overseas easier. Australians didn't need saving to buy imports when they could use credit cards over which the Reserve Bank had controls

[costargh]

LOL
That answer doesn't even answer the question!!!

[AppleXY]

LOL
That answer doesn't even answer the question!!!

Yeah. What kind of flawed answer is that, it's like about something completely different :S

Right TSSM, I suggest you keep you expertise in mathematics LOL

[ReVeL]

Right TSSM, I suggest you keep you expertise in mathematics LOL

Hahah totally agree, they even do english now which is ridiculous.

[ReVeL]

Ehh.. this question gave me the shits even though it's supposedly pretty straight forward. Would someone mind going through it?

Two commodities are complements in consumption. If due to a fall in the production costs, resulting from improvements in technology, the price of one commodity falls, which of the following is the most likely outcome for the other commodity?
A. A reduced demand due to its lower price.
B. A greater demand due to its higher price.
C. A greater supply due to its lower price.
D. A reduced supply doe to its higher price.

Cheers.

[deledio]

Ehh.. this question gave me the shits even though it's supposedly pretty straight forward. Would someone mind going through it?

Two commodities are complements in consumption. If due to a fall in the production costs, resulting from improvements in technology, the price of one commodity falls, which of the following is the most likely outcome for the other commodity?
A. A reduced demand due to its lower price.
B. A greater demand due to its higher price.
C. A greater supply due to its lower price.
D. A reduced supply doe to its higher price.

Cheers.

I remember getting this question too. It's hard to get your head around because each answer contradicts the respective laws of supply or demand. Because it is to do with complements, I would narrow it down to a/b as it is a demand factor, but from there I'm not sure

[marbs]

Ehh.. this question gave me the shits even though it's supposedly pretty straight forward. Would someone mind going through it?

Two commodities are complements in consumption. If due to a fall in the production costs, resulting from improvements in technology, the price of one commodity falls, which of the following is the most likely outcome for the other commodity?
A. A reduced demand due to its lower price.
B. A greater demand due to its higher price.
C. A greater supply due to its lower price.
D. A reduced supply doe to its higher price.

Cheers.

For some reason I'm thinking C. Because of a change in production costs, affecting supply. But yeh wierd question, and could be wrong

[marbs]

whats the answer?

[costargh]

C is really the only one that slightly makes sense but if there was an option that said:

A greater demand due to its lower price. you would choose that one obviously.

[ReVeL]

Answer is actually B.

Must be a shitty question - nothing really sounded right anyway.

Thanks all.

[costargh]

yeh that seems wrong. I'm thinking they got higher and lower price mixed around on A and B

[AppleXY]

LOOOL. I swear is this another bs TSSM exam? Unbelievable. They don't even understand the law of demand, how can demand increase if the price increases. The law of demand is always an inversely proportional relationship to the price.  That is a true error.

In the question, it states, if two commodities are complements in consumption, it immediately refers to supply-side. As commodities are raw materials (primary products)  such as Crude Oil, sugar, coffee, gold an d sliver, it's main use is for businesses.

If the price decreases, and they are complements then the most suitable answer is C

[costargh]

Apple, all products are demanded. Regardless of who the customer is. Whether the customers originate from the household (for finished goods) or for commodities (businesses) the laws of demand and supply will stay the same. I still don't think it really should be any of the answer. I think it should be my made up answer lol.

[ReVeL]

Actually not from a TSSM exam. For that matter - not an exam at all.

The 2008 Study Guide for Economics Units 3 and 4 - Marie McKee and Ken Nailon. One of the revision MC's.

Usually provides pretty decent questions. Clearly not on this occasion.

[AppleXY]

Apple, all products are demanded. Regardless of who the customer is. Whether the customers originate from the household (for finished goods) or for commodities (businesses) the laws of demand and supply will stay the same. I still don't think it really should be any of the answer. I think it should be my made up answer lol.

True. The consumer could be institutional or personal. I just thought commodities is a factor of production so it mainly affects supply side. (lower costs of production, could mean a supply boost)