VCE Economics Exam Discussion and Questions 2017

[brooke99]

the start of the exam was ok .. pretty straightforward but i struggled with the questions about 'jobs and growth' as well!
especially the 8 marks questions ... it didn't seem like there was enough stuff to talk about and also they wasted a lot of time that i could have spent on making my other answers better!

[lovebiology]

Can someone please explain to me why Q6 is A not C? Thanks!

[Econteacher]

Can someone please explain to me why Q6 is A not C? Thanks!

The answer is A as this will reduce the amount of income the elderly have, forcing them to work later in life. C is suggesting that they will retire earlier in life.

[Natasha.97]

Can someone please explain to me why Q6 is A not C? Thanks!

Hi!

Aggregate supply is the total productive capacity of an economy.

C is incorrect: If the retirement age is reduced (e.g. became 50 instead of 60), more people retire earlier. They will not be able to produce goods/services if they are retired, reducing aggregate supply.
A is correct: By reducing the age pension, workers are incentivised to work more (which increases aggregate supply) as the age pension is the predominant source of income once they retire. By working more, they would be able to save more, offsetting the impact of the lower age pension.

Hope this helps

[lovebiology]

Thanks! This makes things so much clearer!

[Max Vaiano]

For the question regarding Consumer Price Inflation and its effect on the current monetary policy stance, was that answered hypothetically or was it asking how the current MP stance would effect consumer price inflation over time - just felt like the way it was worded made it ambiguous.

[TheCommando]

9) should be D and not A.
This is due to the TOTS increasing from Year 1 to Year 2. This means that consumers are able to purchase more imports for any given volume of exports.
Yes!!
I finished my exam 25min early annd went over it and relize i put a wrong asnwer to that question due to reading it wrong lol
 

[PandaWithNoName]

For the question regarding Consumer Price Inflation and its effect on the current monetary policy stance, was that answered hypothetically or was it asking how the current MP stance would effect consumer price inflation over time - just felt like the way it was worded made it ambiguous.

Im pretty  sure at the end of the question it said between 2016 to 2017, but I also added that if CPI were to increase above in the long term then they would tighten

[PandaWithNoName]

How much did you write for the 8 mark questions?

[lovebiology]

Hey what do you think the A+ cutoff will be?

[TheCommando]

How much did you write for the 8 mark questions?

More than the given response length i think but not to much

[KATA]

Hey, did anyone pick dynamic efficiency instead of allocative efficiency for one of the multiple choice questions (maybe question 11?) I am still not sure what the correct answer is 

[zofromuxo]

My suggestion solutions for MC Qs.

1. C
2. D
3. A
4. C
5. B
6. C
7. A
8. C
9. D
10. A
11. A
12. D
13. B
14. C
15. C

[zofromuxo]

My suggestion solutions for MC Qs.

1. C
2. D
3. A
4. C
5. B
6. C
7. A
8. C
9. D
10. A
11. A
12. D
13. B
14. C
15. C

[larz1203]

Hey, did anyone pick dynamic efficiency instead of allocative efficiency for one of the multiple choice questions (maybe question 11?) I am still not sure what the correct answer is 

I picked dynamic efficiency too. It talked about moving to fit society's needs, so I just assumed it was dynamic efficiency 😖