HSC Economics Question Thread

[Chelsea f.c.]

Medicare, social security and other programs mean people save less I.e. I could save for retirement or just get on the pension.... so as people save less there is less money for investment meaning that we require savings from other countries to makeup for the lack of

[Chelsea f.c.]

Sorry I took endowment to mean pension... does factor endowment mean like rich in resources??? So a simple explanation is Australia is such a good place to invest that we can't with low population satisfy all of the good investments with our limited savings so need savings from overseas...

One could say that america has a capital account deficit because they spend to much on consumption so can't afford to invest... or one could say America is such a good place to invest that even with americas savings there are so many good ideas that it requires overseas funds to satisfy...

Sorry for spamming but not familiar with course but study Eco finance at uni

[hannahyasin]

Hi, I've been trying to solve past mc questions when I stumbled upon a question that tricked me a little. I tried solving it but couldn't quite get the right answer. Its 2017 HSC MULTIPLE CHOICE QUESTION 19. anyone help me out?
I also have half way gotten there but need some help understanding the entire concept.
I know there is no specific formula but first step is using multiplier to find MPC. find MPC. and then? I don't quite get how MPC could be used to find consumption and national income.

[JTrudeau]

Hi, I've been trying to solve past mc questions when I stumbled upon a question that tricked me a little. I tried solving it but couldn't quite get the right answer. Its 2017 HSC MULTIPLE CHOICE QUESTION 19. anyone help me out?
I also have half way gotten there but need some help understanding the entire concept.
I know there is no specific formula but first step is using multiplier to find MPC. find MPC. and then? I don't quite get how MPC could be used to find consumption and national income.

Hey Hannah! Welcome to ATARNotes!

As a hint: know that the definition of MPC is change in consumption over change in income. $$MPC = \frac{\Delta C}{\Delta Y}$$

Give it a go, and then click on the spoiler tag for the solution.

Spoiler

[henrychapman]

Anyone else's teachers been nagging on and on about the potential for a global influences question on perhaps economic objectives or any other aspect of the topic 3 or 4 syllabus ? Apparently seems to be the trend that the paper writers are going towards - integrating aspects of the course to test the holistic understanding of the course. I'd be keen on your guys thoughts

[ilikeapples]

Could someone help me out with the attached multiple choice question please (((:

[emilyygeorgexx]

Could someone help me out with the attached multiple choice question please (((:

So you first find out the MPC which is 200-110/300-150 = 0.6

Then now you know the MPC is 0.6 that means the MPS is 0.4

Then you do the multiplier so k = 1/0.4 which is 2.5

Then because it increased by $40bn you do $40bn x 2.5 which is $100 bn - This is the increase in national income

Lastly, to find the new equilibrium level of income you do $100bn + $300bn = $400bn

Therefore, the answer is C 

[ilikeapples]

So you first find out the MPC which is 200-110/300-150 = 0.6

Then now you know the MPC is 0.6 that means the MPS is 0.4

Then you do the multiplier so k = 1/0.4 which is 2.5

Then because it increased by $40bn you do $40bn x 2.5 which is $100 bn - This is the increase in national income

Ahh thank you didn't realise it was a multiplier question 

Lastly, to find the new equilibrium level of income you do $100bn + $300bn = $400bn

Therefore, the answer is C 

[AdmiralVictor]

How much evidence do we need to be incorporating for the short answers or is pure theory to answer the question enough? Usually at most I would make reference to a real world example if it's relevant - e.g. closing down of motor car industry for a question asking about removal of subsidies or structural unemployment - asking this because I lost 4 marks in my trials because I lacked 'evidence' in the form of statistics to back up my explanations

Also any ideas on approaching a macroeconomic policy essay? The only thing I have in mind right now is basically dividing the essay into fiscal and monetary, then writing how each works to address certain economic objects (usually internal stability but may include others based on the question). And even then I'm not entirely sure how to structure these paragraphs

[isaacdelatorre]

How much evidence do we need to be incorporating for the short answers or is pure theory to answer the question enough? Usually at most I would make reference to a real world example if it's relevant - e.g. closing down of motor car industry for a question asking about removal of subsidies or structural unemployment - asking this because I lost 4 marks in my trials because I lacked 'evidence' in the form of statistics to back up my explanations

Also any ideas on approaching a macroeconomic policy essay? The only thing I have in mind right now is basically dividing the essay into fiscal and monetary, then writing how each works to address certain economic objects (usually internal stability but may include others based on the question). And even then I'm not entirely sure how to structure these paragraphs

Hey Admiral Victor,

In terms of short answer questions - I never used a statistic or trend unless the question specifically said to do it. Simply because it doesn't ask you to do that. Looking at marking criteria for the HSC in previous years you can see what you are required to do to get a certain mark (usually things like if you outline two things you can get a 2, explain one and describe the other = 3, explain two = 4) that kind of thing. Nowhere has it ever said to include an example to get the mark. This may be helpful in your explanation of the concept - for instance if you don't explain it well then the teacher might not give you marks but if you use an example to help your explanation then they may be more inclined to give you the marks.

For the essay: that's a tough one because it would depend on what the question is. As a general kind of framework you want to be able to say what the policies are; how they affect/achieve the objectives and how effective they are at doing so. In terms of preparing for it - I would recommend having a really thorough understanding of how each policy works and it's effects on the economy specifically the economic issues. Moreover I would also have a good understanding of micro policies and how they interact with macro policies which could be important in an 'evaluate the effectiveness' question. Hope these help

[hannahyasin]

is there a specific structure for eco essays? also my teacher always says don't describe in an eco policy essay like anything- but almost every sample I read has a bit of description. in general for all essays, should historical trends be incorporated in one para or thought the essay & in an eco policy essay is it necessary to mention very old policies or should I go straight into contemporary policies?

another question, is the Carbon Pollution Reduction scheme still running?
if anyone has a sample band 6 environmental essay please send!

[isaacdelatorre]

is there a specific structure for eco essays? also my teacher always says don't describe in an eco policy essay like anything- but almost every sample I read has a bit of description. in general for all essays, should historical trends be incorporated in one para or thought the essay & in an eco policy essay is it necessary to mention very old policies or should I go straight into contemporary policies?

another question, is the Carbon Pollution Reduction scheme still running?
if anyone has a sample band 6 environmental essay please send!

Hey Hannah,

So there's obviously no set structure to an essay - they wanna see your argument and voice develop. In saying that, your essay does have to be well structured, logical and cohesive. Check out this post I made a while back, it explains how I wrote my essays. You can see it here.

this is the structure I go through in my lectures as well - if you missed them - definitely check out the lecture slides in the noes section!

Good luck

[parallaxd]

For this question, it doesn't specify if global or domestic trade policies so does that mean you can talk about the effects of domestic and global protectionist policies on the Australian economy??

"Analyse the effects of protectionist trade policies on the Australian economy."

[emilyygeorgexx]

For this question, it doesn't specify if global or domestic trade policies so does that mean you can talk about the effects of domestic and global protectionist policies on the Australian economy??

"Analyse the effects of protectionist trade policies on the Australian economy."

Hey!

Yes you definitely can and I probably would for this questions as well. Especially with the current trade war between China and the United States. Despite, Australia not being directly involved, as China is our major trading partner, anything that happens in the Chinese economy can have flow on effects into the Australian economy, especially with Australia being in the regional area as well.

[key to success]

Hey guys!
I was wondering whether anyone can help me with the concept of terms of trade?
when there's an improvement in the tot, does that mean that the revenue gained from exports exceeds the amount the country pays for imports?
so if for example, we sell 100 exports for a $1 each (for simplicity), we get 100 in total, but if the following yr we  sell 200 exports for a $1 each, we get 200 in total- is that an improvement in the tot?
Please, i'll really really appreciate any clarification.