ATAR Notes: Forum
VCE Stuff => VCE Business Studies => VCE Subjects + Help => VCE Economics => Topic started by: costargh on October 13, 2008, 04:45:25 pm
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This thread is for all questions that you find on your trial exams that are challenging etc and you want explained by other students. You can also put your results for exams in here.
Neap 2008- Hard exam in my opinion
82/90
I think my teacher marks easier than some other schools like marbs' school.
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Some results;
81% on the Neap Exam
88% on Leading Edge.
A difficult question I came across for you all'
Explain why the current account deficit has not reduced even though savings have increased. (6 marks)
(I'll put the answer up later, and add some other questions that you may or not find challenging).
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Lol umm ok ill have a go but its just some guessing...
-savings did not increase substantially enough to divert borrowings from overseas back to Australia
-the current loans abroad still have to be repaid, thus the interest on those loans abroad are still adding to the current account deficit
-While the level of credit in australia may have increased, the interest rates offered by financial institutions may represent a poor offer compared to overseas lenders.
-there are other components of the current account that may have increased. Eg. Imports relative to exports may have increased, canceling out any possible reduction in the cad.
im not sure if all of these are real reasons... they are just off the top of my head, hopefully at least one is right lol
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Explain why the current account deficit has not reduced even though savings have increased. (6 marks)
Would the main reason be that even though savings has increased and borrowing from O/S has likely decreased, the net incomes section of the Current Account ivolves Australia paying large amounts of interest on borrowed money, hence the Current Account Deficit is likely to remain the same or continue to grow?
Seeing as it's a six mark question theres probably more that should be included. What did the answer say?
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CAD =! savings.
As revel said, the financial account takes into consideration of borrowings/savings etc of the balance of payments system. Even though there has been an increase in savings, Net Income has most likely remained the same or increased thus resulting in a high CAD albeit high savings.
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Is it possible for somebody to send me any of the 2008 trial exam papers?
We've only been given 2, and their no good anyway
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Heh, a 'first poster' asking for exams. That's a first.
Nope, I don't have any sorry.
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hmm some random points i thought of (since it's a 6 marks ques):
- since aus is experiencing capacity constraints and our demand > productive capacity we need to spend on imports to satisfy our needs and wants -> worsen BOMT despite of increased savings
- the level of savings is still not enough to cover businesses' investment loans and foreign investors still want to inject their capital into aus due to the high interest rates (before sept and oct decreases)
- as people mentioned above, we already have the level of NFD and still have to pay our debts overseas = more debit in net incomes
oh can i argue that a lot of the increase in savings is through the increase in superannuation which isn't really lent out to businesses anyway? or are they actually lent out to them? from what i understand they are invested in secure shares...?
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sorry hijaking thread for a sec
Where can I get that Australian Economic Statistics book? I think its party written by Forsyth
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sorry hijaking thread for a sec
Where can I get that Australian Economic Statistics book? I think its party written by Forsyth
www.warringalpublications.com.au/pdf_downloads/VCE_Study_Packs_web.pdf
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sorry hijaking thread for a sec
Where can I get that Australian Economic Statistics book? I think its party written by Forsyth
www.warringalpublications.com.au/pdf_downloads/VCE_Study_Packs_web.pdf
Idk if u will be able to go and pick up the books from them if the delivery takes to long??
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thanks. I was hoping a shop like Landmark or Endeavour may have it. But I'l probs have to order it
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thanks. I was hoping a shop like Landmark or Endeavour may have it. But I'l probs have to order it
yeh im pretty sure i saw endeavour have both those books ......when i went in there about 2 weeks ago...the one near dande bunnings ..idk if there are any other endeavour book stores?
and if u go through warringal, i doubt ud enjoy taking a trip all the way to coburg to pick the books up haha
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thanks. I was hoping a shop like Landmark or Endeavour may have it. But I'l probs have to order it
lol yeh theres one in bentleigh thats closer i think
yeh im pretty sure i saw endeavour have both those books ......when i went in there about 2 weeks ago...the one near dande bunnings ..idk if there are any other endeavour book stores?
and if u go through warringal, i doubt ud enjoy taking a trip all the way to coburg to pick the books up haha
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Marbs, do you have the answer to this question?
"Explain why the current account deficit has not reduced even though savings have increased. (6 marks)"
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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
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LOL
That answer doesn't even answer the question!!!
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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
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Right TSSM, I suggest you keep you expertise in mathematics LOL
Hahah totally agree, they even do english now which is ridiculous.
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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.
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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
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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
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whats the answer?
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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.
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Answer is actually B.
Must be a shitty question - nothing really sounded right anyway.
Thanks all.
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yeh that seems wrong. I'm thinking they got higher and lower price mixed around on A and B
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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
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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.
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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.
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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)
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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)
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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.
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Yep I think it has been universally established - it was a shit question.
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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?
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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
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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
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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.
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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
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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?
:/
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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
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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.
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Ahh ok, cheers.