2016 HSC Economics Exam Discussion

[itsAnuu]

I believe 13 is B and 14 is A, any one else?

13 is correct, and 14 is D

[Canny98]

I got those two answers as well, but I'm not 100% confident I got them right (especially 13 because I always mix up BOP haha)

Funding provided from Australia to another country is recored in the net secondary account as a debit, a non interest loan that is repaid back to Australia should go as a credit considering credits in the financial account are from foreign investments, as to which this is clearly not an investment, more so a repayment without interest. This is why I chose B

[itsAnuu]

Funding provided from Australia to another country is recored in the net secondary account as a debit, a non interest loan that is repaid back to Australia should go as a credit considering credits in the financial account are from foreign investments, as to which this is clearly not an investment, more so a repayment without interest. This is why I chose B

They are getting repayment from a loan. this means it is conditional. therfore cpatial and financial acc

[hermansia12]

14) is a decline in terms of trade, not an increase

Decline in terms of trade means that export prices are lower (Export Prices/Imports)

[hermansia12]

Decline in terms of trade means that export prices are lower (Export Prices/Imports)

Ahh no i see your point sorry I was thinking decrease but I typed in increase. Thank you for the tip off

[zdeathbringer]

I believe 13 is B and 14 is A, any one else?

I put 13. B and 14. D

[itsAnuu]

14 is A and 17 is C

[JosephElHagg]

Q14) Says what is most likely to result in a decline in the TOT. So therefore demand decreases and supply increases. This will result in a decrease in export prices, which will deteriorate the TOT. If demand increases and supply decreases it will cause an increase in export prices and will improve the TOT. So it is A.

[zdeathbringer]

14 is A and 17 is C

I out 17 B. cause my government spending on training and skilling up will improve structural unemployment.

[itsAnuu]

15 is D

[nexa579]

15. Increasing import quota = increasing the number of imports allowed = decreasing protection.

Whether its C or D I'm not sure... I picked C cuz no idea what D means.

[jmk21]

I think 15 has to be D because all the others would screw over an infant industry.

And I think 18 should be C. The inflation rate has decreased compared to the previous year, but inflation is still occurring so the real value (purchasing power) of any given amount of money has decreased. This is true regardless of the inflation rate as long as it is positive, even if it is 0.01%.

[zdeathbringer]

Hi Everyone!

The economics exam is over!! How did everyone find the exam? Share your thoughts and economic ideas in this thread

Suggested answers will be up soon

A copy of the exam is here if you need it!
____________________________

Multiple choice

Solutions

1. A -> EU shares the same currency
2. B -> Monetary policy targets keeping inflation in target band of 2-3%
3. C -> In budget surplus Revenue > Total Expenditure i.e Taxation increased and Reduced Spending
4. B -> If Aus. Trading partners experience slowdown then Aus. will have slowdown too so higher cyclical unemployment
5. D -> Protection level decreased so local producers less competitive so more people will buy from importers
6. B -> Gini Coefficient increasing = more inequality so greater gap in income
7. C -> Frictional unemployment = those between jobs
8. A -> Inequality in income has increased;
9. B -> Age of retirement increased means more people staying in work force longer therefore higher participation rate and higher taxation (Income tax and less pension payouts)
10. D -> Demand for labor higher therefore more decentralised (more incentive to hire employees)
11. C -> CAD increases as foreign debt increases
12. C -> Those who can save more will benefit from interest rates rising
13. D-> Repayment is a credit (More money to spend in economy) and in the KAFA as secondary income generally involves gifts and one way transfers
14. A-> Terms of trade is decreasing means our export price is more competitive therefore demand has fallen and supply increases (Export Price/Import Price -> Imports more expensive than exports so demand increases (Law of supply and demand);
15. A-> Infant industries can be outcompeted quickly by cheaper world price. So increase in protection will increase their competitiveness
16. D-> Real GDP has increased (Money GDP/CPI) and since CPI increased but avg income has not then those with lower income will have less propensity to spend so inequality increases (i.e HDI decreases)
17. C-> Nairu includes frictional, seasonal and structural unemployment; Increased infrastructure will reduce structural unemployment
18. A-> Dollar has appreciated, able to buy more foreign currency i.e higher purchasing power overseas; Lower inflation domestically means that purchasing power has increased (can buy more for less)
19.
20.

Shouldn't 14 be D as supply will decrease as demand also decreases. Australia will stop supply if demand falls.

[nexa579]

20. could it be argued that it's B since private companies can place toll booths, therefore it may not be a public good?

And I think 18 should be C. The inflation rate has decreased compared to the previous year, but inflation is still occurring so the real value (purchasing power) of any given amount of money has decreased. This is true regardless of the inflation rate as long as it is positive, even if it is 0.01%.

That was what I thought too.

[itsAnuu]

20 is B