Eco Exam

[chasej]

How was the underutilsation rate 12% ?

Unemployed 5 million+ underemployed 7 million=12

Labour force participation=100 million

Therefore underutilisation= 12/100=12%

[MrCommerce]

The second question was the effect of the shift wasn't it?

I just said the shift to right means consumers value the product more and thus are willing to pay more for it thus suppliers driven by their profit motive would increase supply due to the fact consumers are willing to pay higher prices thus supply would expand.

If i remember correctly (for Q3 part ii.) it asked to explain how E1 adjusted to E2 - something like that.

[chasej]

If i remember correctly (for Q3 part ii.) it asked to explain how E1 adjusted to E2 - something like that.

Isn't that what I said? It adjusted because supply expands due to the higher price consumers are willing to pay.

[janson34]

i thought it was due to the expansion of supply as a result of larger demand by consumers, and as a result consumers are paying higher (1$ more if i remember)

[abcdqdxD]

increase in demand results in an undersupply of coffee.. suppliers increase price to return to market equilibrium (so equilibrium price has increased). more resources are allocated towards this market as an increase in its relative price compared to other beverages acts as price signals for greater production of this good and firms are inclined to respond due to their desire to maximise profit.. increasing equilibrium q

[Simonlee]

Hope you guys all went well!! Does anyone have a photo/copy of the exam they could post? Also, was immigration policy (recent intake of skilled immigrants) a suitable policy for the two-speed question?

Thanks!

[sam.utute]

Someone please email me the exam! ([email protected])

[abcdqdxD]

Someone please email me the exam! ([email protected])

oh no not the dreaded solutions

[chasej]

I should probably not read this thread anymore. Every post makes me more and more nervous hahahaha.

[abcdqdxD]

I should probably not read this thread anymore. Every post makes me more and more nervous hahahaha.

Every additional 10 minutes I think about my eco exam I think I've lost an extra mark

[hicksy]

Did anyone have a favourite question? I loved the ones about coffee prices and demand shifts in the market (think it was question 3 extended response). Micro is so much more fun than macro simply because you can see it every day in real life. Was really nice for VCAA to include a real life application type question.

What microeconomic demand factor did people use also? I did an increase in price of a substitute (used energy drinks as an example substitute).

VCAA's demand/supply graph was also so neat <3

I said it could have been a cold day and people would be craving a nice hot coffee!

[abcdefgh]

increase in demand results in an undersupply of coffee.. suppliers increase price to return to market equilibrium (so equilibrium price has increased). more resources are allocated towards this market as an increase in its relative price compared to other beverages acts as price signals for greater production of this good and firms are inclined to respond due to their desire to maximise profit.. increasing equilibrium q

Yeah, I was really confused with what to include in my answer because the next question was about relative prices and resource allocation.

[tj6890]

Did everyone else find the 2 speed economy question extremely difficult? I wasn't even sure what the question was asking for it was all so confusing

[chasej]

Did everyone else find the 2 speed economy question extremely difficult? I wasn't even sure what the question was asking for it was all so confusing

Yes. The general consensus is that it was the hardest question on the paper as you can see earlier in this thread. 

[chasej]

Could someone please tell me why Multiple Choice Questions are worth 2 marks each for Economics? How can you earn 1 Mark?

A right answer=2 marks. A wrong answer=0 marks.

There are no 1 marks. Multichoice question are just double marked in economics.