Economics Exam Discussion + Suggested Answers!

[bernardm]

sorry do you mind telling me what's option c as well? thanks. overall i didn't go that great for the essays, but mc and short answer were alright

It was a decrease in the company taxation rate

[isaacdelatorre]

Does moderation of school marks work the same if you do the course online/via distance education, because that's actually how I did hsc economics

Hi there,
Just spoke to Jamon who is the encyclopaedia of moderation and scaling and he has said that "It does work the same, but with a class size of just 1, so there is effectively no moderation - It is based purely on their performance in the HSC exam "

Hope that clears things up and congrats on finishing the exam!!!

[browniesandpuppies]

hey there, when it says "above the nairu", do they mean the unemployment rate exceeding the NAIRU (so probably around 1%), or do they mean the opposite, where there is a high level of unemployment. Thanks!

[bernardm]

hey there, when it says "above the nairu", do they mean the unemployment rate exceeding the NAIRU (so probably around 1%), or do they mean the opposite, where there is a high level of unemployment. Thanks!

Above the NAIRU refers to the economy having SOME LEVEL of cyclical unemployment

[amberberrie]

For 22a) I said that if the agricultural property was sold then the BOGS could deteriorate because the export revenue that was previously obtained through the sale of goods such as meat and dairy is now in foreign ownership. Do you think this is fine?

oh that is so good!!! i just talked about the primary incomes account... do you think that is fine?!

[toasted]

Hey!

Could someone tell me what question 7 was about?

Also, i know its a far stretch but for the question about unemployment and its impact on eco growth could you explain how it leads to greater economic growth in the long term because of increased government expenditure and hence injections in the economy leading to greater consumption and aggregate demand.

Thank you!

[queenie09]

What do you think would be the raw mark for a band 6 this year?

[angelahchan]

Also, i know its a far stretch but for the question about unemployment and its impact on eco growth could you explain how it leads to greater economic growth in the long term because of increased government expenditure and hence injections in the economy leading to greater consumption and aggregate demand.

Thank you!

I remember my teacher telling me that transfer payments don't directly increase economic growth, here's what I got in my notes: "Transfer payments don't directly contribute to economic growth- helps lower income people to have a normal standard of living; indirectly could stimulate demand in economy, but this  amount is insignificant."
Maybe if you made clear that this was an indirect impact and gave an example (e.g. the 2008 gfc cash transfers) it could work, but I'm not sure...

[ChasingMedForLife]

23(b) Explain two ways in which taxation can be used to change the GINI coefficient from 0.5 to 0.2.
A decreased gini means that the economy is moving to a more equitable distribution. This can be achieved through increasing the marginal tax rates of higher income earners (more money will be taken from those who earn a lot) and then increasing the tax free threshold (those with lower incomes will keep their original income) and this will bridge the gap between the two.
Other answers could be things like decrease the GST since it is a regressive tax. If you explain how this tax would bridge the gap between high and low income earners effectively then this should get you 4 marks.

Okay, i screwed up hard. I wrote exactly the opposite, explaining in depth how two ways can make society more unequal in the distribution of income. Can i expect any marks or just a straight up 0/4

[carolinewang206]

For question 10, it was asking what the requirement was for them to “receive the minimum wage”, not the minimum wage or above. So wouldn’t that be referring to people receiving exactly the minimum wage and not above? So for that reason I put covered by industrial awards, what do you guys think?

Atm I think I’m looking at about 18 for multi if that one is wrong, short answers are looking good, I know that all my content was right for the essay but I’m really not sure about how my structure was. For question 25 i did intro (put the trends and everything into there so I didn’t do another para), then did monetary, fiscal and microeconomic policy. For each policy I did a bit of the theory, then talked about how declining activity (gfc/Chinas shrinking commodities demand/improving IC due to lower exchange rate and TOT) impacted on each policy. Not sure if I was allowed to because it was an analyse question, but I talked about the ineffective macroeconomic policy mix because monetary policy has been said to be less effective in expansionary form and therefore needs to be supported by expansionary fiscal policy but due to political constraints it’s been a mildly contractionary stance. I’m not sure

Then I did 27, talked about similar experiences of globalisation, such as increased trade, increased borrowing of funds/investment, lower protection due to joining WTO, emergence of business cycles/financial contagion, dependence on commodity exports due to global specialisation and smaller export base and micro reform to deal with structural changes(these were my body paragraphs). My case study was Brazil so talked about different approches to sustainability based on Kunetz curve, and differences in growth due to differences in financial infrastructure/different approaches to growth.

Does this sound ok? I wasn’t really sure about structure really, none of the questions were typical economics questions where you could use a generic scaffold, which is probably what they trying to avoid. Thanks for doing the answers!!!

[bromine99]

Wow Isaac!!
i just wanted to say thank you SO MUCH for taking the time to properly explain your answers, especially the multiple choice answers (and even showing us your process of working out) because that actually allowed us to jog our memory of the actual questions ahah!!
it is much appreciated

[bromine99]

I was just wondering for question 17 of the multiple choice what the other options (A,B,D) were?
i didnt want to waste too much time on multiple choice so i did this one by just eliminating alphabetically ahah (i probably shouldve checked all of them rip)
but from memory wasnt option A - the balance of the bogs is the same in both years

and i thought it was a -$10b deficit in both years so i chose A without checking the rest ahah

did i just completely misinterpret that question?

aside from that, the rest of my MC answers line up with yours, (i chose A for q6 and c for q7 tho) and i cant remember what i put for q12

but overall i thought this years paper was pretty good, the essay questions were a bit weird tho (as in not your typical essay questions, i did 26 and 28)

[carolinewang206]

I was just wondering for question 17 of the multiple choice what the other options (A,B,D) were?
i didnt want to waste too much time on multiple choice so i did this one by just eliminating alphabetically ahah (i probably shouldve checked all of them rip)
but from memory wasnt option A - the balance of the bogs is the same in both years

and i thought it was a -$10b deficit in both years so i chose A without checking the rest ahah

did i just completely misinterpret that question?

aside from that, the rest of my MC answers line up with yours, (i chose A for q6 and c for q7 tho) and i cant remember what i put for q12

but overall i thought this years paper was pretty good, the essay questions were a bit weird tho (as in not your typical essay questions, i did 26 and 28)

I did A for 17 as well! I checked all the others and from memory net errors and omissions was 10 in both years. I did B for 6 and C for 7

[YungFettyLi]

I did A for 17 as well! I checked all the others and from memory net errors and omissions was 10 in both years. I did B for 6 and C for 7

17 is actually C, i had A at first, but the answer was 'Balance of G/S remained constant' which is incorrect. the Goods balance was the same, but net services was different in the second year. Net Omissions was also different, from -10 to -20 i believe in the 2nd year. Therefore it was C.

[YungFettyLi]

6 is B,
Fines are regulations, not market-based.

7 is C,
When the economy is in downturn, company taxation would decrease automatically.