HSC Economics Question Thread

[Deng]

I know the cutoffs are different every year but what would be the band 5 cut off for economics ?

[birdwing341]

Question is: Calculate the increase in domestic quantity produced after the subsidy.

I cannot fathom it

[AFix]

Question is: Calculate the increase in domestic quantity produced after the subsidy.

I cannot fathom it

500 -> 600 so an increase in quantity of 100?

[Giraffes are tall]

Effects of inflation on exchange rate?

Thanks

[isaacdelatorre]

Effects of inflation on exchange rate?

Thanks

High inflation relative to overseas means that our exports lose international competitiveness which decreases the demand for our exports and hence decreases the demand for the AUD = depreciation. Also, o/s goods and services may be cheaper than our own, increased import spending increases the supply of AUD = depreciation. Converse is true if inflation is lower

[Giraffes are tall]

"3. Memorising statistics: Don’t memorise these the night before! These will become your downfall if you do cram. The trick to memorising statistics is reading/watching the news daily (weekly at the very least). When you’re watching the news, use the psychological trick by noting down key points and statistics as interesting. TRENDS ARE MORE IMPORTANT THAN SPECIFIC STATISTICS!!! Your data should always reflect the effects/impacts of policies and economic issues relevant to the question."

RIP

[hermansia12]

Effects of inflation on exchange rate?

Thanks

Speculation- If in high inflation, speculators will predict that the RBA will raise the cash rate in order to slow economic growth and lower inflation. This will lead to an short term appreciation in exchange rate (higher demand of $AU due to increased financial flows into Australia).

If sustain long term low inflation, there will be greater confidence in the economy therefore will lead to an appreciation of the $AU due to increased investment

[hermansia12]

"3. Memorising statistics: Don’t memorise these the night before! These will become your downfall if you do cram. The trick to memorising statistics is reading/watching the news daily (weekly at the very least). When you’re watching the news, use the psychological trick by noting down key points and statistics as interesting. TRENDS ARE MORE IMPORTANT THAN SPECIFIC STATISTICS!!! Your data should always reflect the effects/impacts of policies and economic issues relevant to the question."

RIP

Love how you're reading the tips Although worse thing you can do to yourself right now is to drown in negativity. Stay positive! You can do it!

[hermansia12]

500 -> 600 so an increase in quantity of 100?

Yep this is exactly what I was thinking.

[onepunchboy]

Hey guys in the exam there was a q asking about the disadvantages of international agreements for environmental sustainability, i wasnt sure what to write. Can anyone suggest answers? Thanks!!!

[itsAnuu]

Hey guys in the exam there was a q asking about the disadvantages of international agreements, i wasnt sure what to write. Can anyone suggest answers? Thanks!!!

Kyoto and Montreal

[Essej]

Hey guys in the exam there was a q asking about the disadvantages of international agreements, i wasnt sure what to write. Can anyone suggest answers? Thanks!!!

I assume you mean the one about environmental agreements? Jamon is uploading the exam soon, don't fret

I talked about the Kyoto Protocol and the disadvantage of state sovereignty - nations aren't obliged to follow the set targets for reductions in greenhouse emissions.

Hope this helps!

[hermansia12]

Hey guys in the exam there was a q asking about the disadvantages of international agreements, i wasnt sure what to write. Can anyone suggest answers? Thanks!!!

Hey there!

I'll be going over the exam and doing suggested answers as soon as its up but for that question,

International trade agreements can be very exclusive in its nature (favours developed nations more). This means that poorer countries may find it harder to enter into the market and cause a poverty gap spiral where the "richer get richer and the poor get poorer".

It can also cause retaliation effect which can damage the Economy's level of exports and reduce external stability (As the CAD increases in the BOGS)

[isaacdelatorre]

doing a case study on malaysia, would it be considered a developing, developed or emerging economy.

Hey Chloe,

You should be aware that there is no set criteria of what constitutes an emerging, developed and developing economy; there are basic indicators that are very subjective, however I do think that it is an emerging economy. Especially since the IMF (most reputable source I could find) classifies it in many of it's publishings as an "emerging market that trades with advanced economies"

Although, Malaysia's GDP growth is not as high as some of the other emerging economies, the rest of the indicators point towards an emerging economy rather than an advanced or developing economy

Hope this helps

[Iminschool]

Simple question here:
'Compare and contrast international and regional business cycles'  (3 lines given)