HSC Economics Question Thread

[angelahchan]

Hi, could someone please help explain why the answer is B?  I thought with less of those who would be categorized as unemployed in labour force, unemployment rate would decrease

[Mathew587]

Hi, could someone please help explain why the answer is B?  I thought with less of those who would be categorized as unemployed in labour force, unemployment rate would decrease
(Image removed from quote.)

if less people are actively looking for work -> labour force would be smaller
therefore looking at the unemplyment rate formula:
(no of unemploed people/labour force)
the labour force would decrease and no of unemployed would increase resulting in a higher unemployment rate

therefore it's B

[Natasha.97]

if less people are actively looking for work -> labour force would be smaller
therefore looking at the unemplyment rate formula:
(no of unemploed people/labour force)
the labour force would decrease and no of unemployed would increase resulting in a higher unemployment rate

therefore it's B

Hi!

Just a slight note that the number of unemployed won't change (this is a case of hidden unemployment, which is not included in the statistics as they don't fall under the definition: "actively seeking work"), but you're spot on about the labour force decreasing

[hinakamishiro]

Hey guys! Can I please have some help with this question? I don't really understand the working out/ reasoning. Thanks!

[lcamilleri.53]

Hey guys! Can I please have some help with this question? I don't really understand the working out/ reasoning. Thanks!

Hey, so this question is using the simple multiplier. So to calculate the MPC, the change in consumption is 40 for every 50 in income (i.e. 40/50). Hence the MPC = 0.8. Therefore the multiplier (k) = 1/1-MPC = 1/1-0.8 = 5. Therefore to find the initial change in exports the formula is change in national income divided by the multiplier (100/5 =20). Therefore the answer should be A

[Shlomo314]

Hi,

What type of aid would fall under secondary income and what type of aid would fall under the Capital and Financial income?

Cheers?

[mixel]

Hi,

What type of aid would fall under secondary income and what type of aid would fall under the Capital and Financial income?

Cheers?

IIRC untied aid falls under the secondary income account of the Current Account and tied aid falls under the Capital account.

[carolinewang206]

Hey, was just wondering what the general process was with these questions? we never did it in class

[Natasha.97]

Hey, was just wondering what the general process was with these questions? we never did it in class

Hi!


Hope this helps

[carolinewang206]

Hi!


Hope this helps

perfect thanks so much!!

[Lumenoria]

Referring to the photo, would the size of the quota be 2000 or do you have to do 2000-1000 so that it's 1000?

[Natasha.97]

(Image removed from quote.)

Referring to the photo, would the size of the quota be 2000 or do you have to do 2000-1000 so that it's 1000?

Hi!

The quota would be 4000-2000, which is 2000

[lcamilleri.53]

Hi, for the essays I was wondering if there was a correlation between current affairs in the news and possible prominence of similar essay questions. E.g. there was a sources of economic growth in 2015 after the mining boom ended. I was then thinking if this has any relevance to this year's news and thought of topics that could appear. Do you think because of the debate of the TPPA there could be a likely trade agreements question or maybe budget analysis given push for budget surplus.

[Lumenoria]

Hi!

The quota would be 4000-2000, which is 2000

Omg that's completely different to what I thought, can you explain how?

[Natasha.97]

Omg that's completely different to what I thought, can you explain how?

Hi!

Background Info

A quota is defined as a restriction on the amount/value of a good that may be imported.
The amount of imports is the difference between the quantity that domestic businesses can supply, and the quantity that is demanded.

So before the quota was implemented, the quantity that domestic producers supplied was 1000, whereas the quantity demanded was 5000. The amount of imports is 5000-1000 = 4000.

At the new price of $12, the quantity that domestic producers supplied is 2000, whereas the quantity demanded is 4000. The amount of imports is 4000-2000 = 2000.

At the old price, overseas producers could supply 4000, but at the new price, overseas producers can only supply 2000. Therefore, the quota is 2000 (maximum value they could supply).

Hope this makes sense!