HSC Economics Question Thread

[birdwing341]

Just wondering, would knowing policy responses to economic issues be enough for knowing budgets or should i have knowledge of budgets that had relate to globalisation ( not sure if this question makes sense )

Thanks

Hi Deng,

Not sure if this is going to be the answer you want haha, but please clarify if I haven't got to the crux of it. The questions are not going to ask you to critically evaluate the budget outcomes of anything beyond the term 'recent' (which to my understanding is usually 4 years, but in the case of the budget, closer to 2), so I think it's wise to have a decent knowledge of recent budgets (probably only one tbh). You shouldn't need to have knowledge of budgets beyond this, although it is good to have knowledge of specific policies from within these budgets (e.g. introduction of superannuation etc.) and perhaps knowledge of the trend in the budget outcome (e.g. increasing budget deficits, although recent promise to engage in fiscal consolidation).

Hope this is kind of what you were going for

[Deng]

Thanks Birdwing, yeah that makes sense to me. Also, was wondering how much of the topic 4 microeconomic reform stuff do we need to know - NCP, Deregulation, Regulation, Product/Factor Markets, Labour market reforms etc because im just looking at it right now and im dreading going over this

[hermansia12]

Just wondering, would knowing policy responses to economic issues be enough for knowing budgets or should i have knowledge of budgets that had relate to globalisation ( not sure if this question makes sense )

Thanks

For globalisation definitely know the organizations such as World Bank, UN etc. And their policies and aims.You also need to know free trade agreements and blocs.
Generally economic issues will have an effect on world economy due to the increasing integration of global economies. I would definitely know the budget and why certain policies are proposed.

I think that's what you're asking, hope this helps

[hermansia12]

Thanks Birdwing, yeah that makes sense to me. Also, was wondering how much of the topic 4 microeconomic reform stuff do we need to know - NCP, Deregulation, Regulation, Product/Factor Markets, Labour market reforms etc because im just looking at it right now and im dreading going over this

Hi Deng,
The 2015 paper had a macroeconomic question as the essay so you should be prepared for all aspects of that topic just in case.

[birdwing341]

Thanks Birdwing, yeah that makes sense to me. Also, was wondering how much of the topic 4 microeconomic reform stuff do we need to know - NCP, Deregulation, Regulation, Product/Factor Markets, Labour market reforms etc because im just looking at it right now and im dreading going over this

2015 was a microeconomic reform essay, so it remains unlikely that there'll be an essay on this stuff. However, it's quite likely you'll come across it in the short answer section of the paper, so I would focus your knowledge of NCP, Deregulation, Regulation, product/factor markets to addressing those questions. Labour market is slightly different, and is more likely to be asked as an essay question although it is still quite unlikely that it will.

But if you can study it, it's in your best interests to do it Maybe look at the textbook and do the short answers at the end of this section as practice

[hermansia12]

2015 was a microeconomic reform essay, so it remains unlikely that there'll be an essay on this stuff. However, it's quite likely you'll come across it in the short answer section of the paper, so I would focus your knowledge of NCP, Deregulation, Regulation, product/factor markets to addressing those questions. Labour market is slightly different, and is more likely to be asked as an essay question although it is still quite unlikely that it will.

But if you can study it, it's in your best interests to do it Maybe look at the textbook and do the short answers at the end of this section as practice

With the Labor market, some important concepts include the decentralization of labour, awards, enterprise agreements, dispute resolution and casualisation of the workforce. I feel like they may throw in a casualisation and decentralization question due to the recent activity in unemployment in Australia. 

[Deng]

If we are given a subsidy diagram how would we find the total cost of the subsidy, e.g subsidy amount * X ( how do we know how much is being subsidised )

[Deng]

http://www.acehsc.net/wp-content/uploads/Trial%20Papers%202015/2015/Economies/2015%20Economics%20-%20QATS%20Trial%20with%20Solutions.pdf

Can someone tell me if these multiple choice question solutions are wrong ?

[isaacdelatorre]

http://www.acehsc.net/wp-content/uploads/Trial%20Papers%202015/2015/Economies/2015%20Economics%20-%20QATS%20Trial%20with%20Solutions.pdf

Can someone tell me if these multiple choice question solutions are wrong ?

Hey Deng,

I'm pretty sure they are wrong.. Unless I really need to revise every section
Some of the answers didn't seem right at all, what did you get for 12 - I didn't think any of them were correct.

The short answer guidelines are ok though

[hermansia12]

If we are given a subsidy diagram how would we find the total cost of the subsidy, e.g subsidy amount * X ( how do we know how much is being subsidised )

In a subsidy graph (Like the one attached), the supply is shifted to the right from S to S1 as domestic supply increases. This is due to the nature of subsidies whereby it's payments by the government to make an industry more competitive and productive. Thus, increasing supply and lowering the market price. The area of the box in the attachment would be the size of the subsidy.

Hope this helps

[Deng]

In a subsidy graph (Like the one attached), the supply is shifted to the right from S to S1 as domestic supply increases. This is due to the nature of subsidies whereby it's payments by the government to make an industry more competitive and productive. Thus, increasing supply and lowering the market price. The area of the box in the attachment would be the size of the subsidy.

Hope this helps

My bad, i dont think i explained myself properly, say for example i knew the price of the subsidy was $5, but it asked me to find the total cost of this to the government i.e what is the quantiative amount of goods being subsidised. So on the graph, it would be 5* Q but im not sure how to find Q. I would post the question but i managed to lose it :/

Hey Deng,

I'm pretty sure they are wrong.. Unless I really need to revise every section
Some of the answers didn't seem right at all, what did you get for 12 - I didn't think any of them were correct.

The short answer guidelines are ok though

Hey Deng,

I'm pretty sure they are wrong.. Unless I really need to revise every section
Some of the answers didn't seem right at all, what did you get for 12 - I didn't think any of them were correct.

The short answer guidelines are ok though

Okay thats good, i was seriously worried that i got complete shit in the MC

[hermansia12]

Hey Deng,

I'm pretty sure they are wrong.. Unless I really need to revise every section
Some of the answers didn't seem right at all, what did you get for 12 - I didn't think any of them were correct.

The short answer guidelines are ok though

I agree- I had completely different answers:
1. C
2. A
3. C
4. D
5. A
6. D
7. A
8. B
9. A
10. D
11. A
12. I feel like 12 is asking for marginal propensity to save because I got 0.8 for MPC
13. C
14.D
15.B
16.C
17.A
18.B
19.C
20.A
These are the answers I got for MC. I could be wrong though so please message if you find a wrong answer.

[hermansia12]

My bad, i dont think i explained myself properly, say for example i knew the price of the subsidy was $5, but it asked me to find the total cost of this to the government i.e what is the quantiative amount of goods being subsidised. So on the graph, it would be 5* Q but im not sure how to find Q. I would post the question but i managed to lose it :/

Hi Deng,
Sorry, I'm still not very sure what the Q you're after is because the subsidy isn't really a payment to goods directly, it is a payment to the industry. Are you after the amount of increased production the subsidy has caused?

[Deng]

Um okay, from memory the question was asking how much the total subsidy would be costing the government overall. For example if quanity was 400 and subsidy was 2$ then it would cost the government 800$ however for the question i had to work out the quantity except im not how to work it out looking at a grap

[isaacdelatorre]

I agree- I had completely different answers:
1. C
2. A
3. C
4. D
5. A
6. D
7. A
8. B
9. A
10. D
11. A
12. I feel like 12 is asking for marginal propensity to save because I got 0.8 for MPC
13. C
14.D
15.B
16.C
17.A
18.B
19.C
20.A
These are the answers I got for MC. I could be wrong though so please message if you find a wrong answer.

For question 9 - could you please explain it to me?

I got B, increase in consumer confidence, because to if consumer confidence increased then people would buy more hence increasing consumption and the marginal propensity to consume. When the MPC increases, the value of the multiplier increases, right?

I didn't think it was A because an increase in investment would only have a multiplied effect, not increase the multiplier itself; unless investment was used to become more efficient and decrease prices, and thus encourage consumption.