HSC Economics Question Thread

[itsAnuu]

Is the total size of the subsidy paid by the government the vertical distance between the supply curves times by the 2nd equilibrium point, or the 1st equilibrium point?

[isaacdelatorre]

Is the total size of the subsidy paid by the government the vertical distance between the supply curves times by the 2nd equilibrium point, or the 1st equilibrium point?

Hey Anuu,
The value of the subsidy is the vertical distance between the 2 supply curves times by the total domestic production. This is because the government subsidises every unit of production domestically produced. It is not always the equilibrium price, because if there is a world price lower than equilibrium, then domestic supply is where the world price intersects the domestic supply graph.

Hope this helps

[onepunchboy]

Can anyone give me a list of graphs that i should include in my essays and just know in general??

THANKS

[isaacdelatorre]

Can anyone give me a list of graphs that i should include in my essays and just know in general??

THANKS

hi there,
Someone asked this question a few days ago, it's on page 9, post 122

[itsAnuu]

So its the price per unit times by the NEW QUANTITY which they produce on the x-axis yeah? Cause this question lol... no answers btw

[isaacdelatorre]

So its the price per unit times by the NEW QUANTITY which they produce on the x-axis yeah? Cause this question lol... no answers btw

Hey there,
So since the price of the subsidy is the vertical distance between the 2 curves, i.e. $5
The new price is $7, the quantity supplied by the domestic market is 100 as this is the quantity where the new price intersects the domestic supply curve. Thus, the cost to the government is the price of the subsidy x the quantity domestically supplied.

Hence the answer should be A - $500m

[isaacdelatorre]

Hey guys,

Will there be a guide for 24 hours til the HSC Economics exam??
I am kind of struggling to get through the content and need a bit of direction as I am unsure what is the best way to go about studying for it - statistics, articles, notes, RBA charts, past papers, essay plans???

Any help is appreciated

[birdwing341]

So its the price per unit times by the NEW QUANTITY which they produce on the x-axis yeah? Cause this question lol... no answers btw

Aaaaah this question - had a sustained discussion with mates in my year about it Isaac is right when the answer is A - $500, but I personally believe that the question makes little sense, because technically you have to assume that the government has imposed a $2 tariff, because otherwise the economy would be operating at the world price of $5. In this case (the $7 becomes a $5), the quantity increase is the same, just a different size of subsidy.

[isaacdelatorre]

Aaaaah this question - had a sustained discussion with mates in my year about it Isaac is right when the answer is A - $500, but I personally believe that the question makes little sense, because technically you have to assume that the government has imposed a $2 tariff, because otherwise the economy would be operating at the world price of $5. In this case (the $7 becomes a $5), the quantity increase is the same, just a different size of subsidy.

OMG wow, good pick up birdwing, I didn't even read the first bit, lol that is soo weird, how can the price be $7 if the world price is $5... It doesn't tell us what the quantity is at $5

[hermansia12]

Hey guys,

Will there be a guide for 24 hours til the HSC Economics exam??
I am kind of struggling to get through the content and need a bit of direction as I am unsure what is the best way to go about studying for it - statistics, articles, notes, RBA charts, past papers, essay plans???

Any help is appreciated

No worries check it out on this page: Last minute prep for HSC exams

[hermansia12]

OMG wow, good pick up birdwing, I didn't even read the first bit, lol that is soo weird, how can the price be $7 if the world price is $5... It doesn't tell us what the quantity is at $5

The graph is very misleading in this regard. I personally don't think you will get a question like this where you would have to assume things in the HSC

[onepunchboy]

hey can anyone help explain how borrowing from private sector leads to the " crowding out " effect? im abit confused... THANKS

[hermansia12]

hey can anyone help explain how borrowing from private sector leads to the " crowding out " effect? im abit confused... THANKS

First off, the government borrows money from the private sector in order to finance their fiscal policies. Thus, it limits the supply of money in the private sector which will put pressure on interest rates to increase. This is known as the crowding out effect as households will find it harder to borrow with the higher interest rates. (more income needed to repay debt).

Hope this helps

[isaacdelatorre]

Hi there,
What is your preferred structure for an essay?
How do you also structure your paragraphs and use reading/planning time?
Also, if a question is two parts, or double barrel - do you integrate the two parts or deal with them separately (e.g. explain recent changes in the level of unemployment and the effect on unemployment)

Thank you

[hermansia12]

Hi there,
What is your preferred structure for an essay?
How do you also structure your paragraphs and use reading/planning time?
Also, if a question is two parts, or double barrel - do you integrate the two parts or deal with them separately (e.g. explain recent changes in the level of unemployment and the effect on unemployment)

Thank you

In reading time, I always turned to the essays first and figure out which essay I am going to do and process the stimulus questions. Those were the ones that I needed more time on to think about. I don't immediately plan, I just define the topics (e.g in the question you gave I would go unemployment is number of people supplying labor but are underutilized by labour market). Then I move onto the short answer and see if any stump me before finally moving on to MC. This way it gives me more time to ponder potential economic concepts I can include in the question and see if there are any other extra info given in the MC which I had not thought about.

Unfortunately my weakest part of my game was MC so I would spend double the amount of time on it before flying through SA and the essay. How you attack the time is dependent on your weaknesses. Generally try to keep to the recommended times BOSTES gives you

In essays, I would structure it with economic concept -> policy to combat -> why that policy work/didnt work-> further suggestions if need improving. In 2 barrel questions, one always relates to the other so do it together( another reason why econ. is integrated and you can't tell prelim from hsc). In your question the level and changes of unemployment rates ->will be impacted by types of unemployment -> impact economic growth -> effects of unemployment etc. So I usually do it together. In your question i would structure it economic concept (rates of changes in unemployment rate e.g hidden unemployment increasing) -> Impact to unemployment rate -> policy to combat.  (pardon all the flow charts its just how I explain how my brain works when I write)

Before I write I'd scribble down all the concepts that relate to the question beforehand and then each paragraph tackles that one point.
e.g in your question:
-cyclical unemployment (Business cycle)
-hidden unemployment (Falling participation rates)
-underemployment and casulisation of the workforce (increasing part-time jobs)
-Structural unemployment (Manufacturing)
-Infrastructure; boost of foreign investment due to globalization funding -> comparative advantage-> job creation lower growth

This would see me through the essay pretty much and makes the writing flow better I found

Hope this helps