Economics Questions Thread

[TrueTears]

A balance of payment is an accounting record of all monetary transactions between a country and the rest of the world. These transactions include payments for the country's exports and imports of goods, services, and financial capital, as well as financial transfers.

An allocation of resources is a transfer of resources between individuals which often involves a trade-off, ie, one side becoming better off while other side becoming worse off. However an efficient allocation of resources is which makes at least one individual better off without making any other individual worse, this is often called the Pareto efficiency.

You might ask how can we achieve an efficient allocation of resources? Well it is explained by the two fundamental theorems of welfare economics.

The first fundamental theorem is that any Walrasian (competitive) equilibrium is in fact a Pareto efficiency.

The second fundamental theorem states that, if we assume that every production set is convex and every preference relation is convex then any desired Pareto-efficient allocation can be achieved by a price quasi-equilibrium with transfers.

The proof for the second fundamental theorem is much beyond the scope of things, however it is a quite interesting branch of theoretical economics.

[DNAngel]

Hey guys, I'm finding describing the trend of a graph difficult? Can anyone give me any pointers to successfully describing the trend of a graph? (Including points at which they peak of plummet?)

[Hutchoo]

What kind of graph?

[TrueTears]

what hutchoo said lol

[DNAngel]

For example, "Describe the trend in the value of the Australian dollar against the $US".

[TrueTears]

was there a graph attached or something? I'm not a specialist in the historical data regarding these 2 currencies, however if you could provide a graph of the historical values then I guess you can describe it.

[Hutchoo]

The answer to this question is C.
I don't really understand it though.
Could someone go through this question and explain to me why it has to be C and not A,B or D?

Thanks.

[TrueTears]

The answer to this question is C.
I don't really understand it though.
Could someone go through this question and explain to me why it has to be C and not A,B or D?

Thanks.

It's just a simple question to calculate the percent of personal tax income.

Go through the options like this:

A. For an income of 10000, the tax charged is

For an income of 20000, the tax charged is

B. For an income of 10000, the tax charged is 10%

For an income of 20000, the tax charged is

C. For an income of 10000, the tax charged is 10%

For an income of 20000, the tax charged is

D. For an income of 10000, the tax charged is

For an income of 20000, the tax charged is

Now since these are direct taxes on income, we expect a higher income to have a higher tax rate (or at least the same tax rate as the previous lower income). As we can see for C, for the 10000 we charged a tax of 10% yet for a higher income of 20000 we charged a tax rate of only 7.5% which is lower than 10%. This is an uneven distribution of wealth (the poor has to pay more money as tax than the rich)

[Hutchoo]

That type of solution wasn't even in the book, but it's good

FASYIDUAWIOJ <3 love ya man. Ty for the help (once again)

[Hutchoo]

Is this a good definition of monetary policy?

Monetary policy is an aggregate demand management policy. It involves the RBA's measures that focus mainly on altering the cost, availability and demand for credit, and the rate at which it flows between the financial and other sectors of the economy.

These questions are usually marked out of 2-3, so could you help me a bit on "perfecting" the definition?
Thanks.

[Saur11]

Monetary policy is a macro-economic instrument used by the RBA designed to manage the level of AD. Monetary policy involves the manipulation of interest rates, regulation of the nation's money and the rate at which credit flows into the economy via the financial sector.
This is the text book definition, might be worth just sticking to that. Regardless, i don't think the examiners would be pedantically checking definitions, so yours would be fine.

[Hutchoo]

I thought I deleted my post xD. Yeah, thanks a lot Saur11 There are so many different definitions!

[sam.utute]

Just a tip for definitions:
Make sure you have a long and short definition for everything. You should really be defining the key concepts (the policies and the goals) every time a relevant question comes up. For 6-8 mark questions, have a really, really detailed definition (including measure, target, elements etc.). For the 4 mark questions, you can use a simple one sentence definition.

[Hutchoo]

Hi guys, I have a question to ask about microeconomic reform/supply-side stuff for eco

Anyway, in relation to the policy mix, can someone give me a few GOOD examples of  a conflicting and non-conflicting policy mix?
All of my examples are too similar :/

Thanks

[hala_madrid]

Hey, just wondering if anyone would be able to tell me generally if there are ever questions on the vce exams about alternative measures of progress, especially in short answer? (MAP, GPI, etc.) I'm saving these exams for later so I don't really want to look through them myself. Thanks

Also, to those that got 50 or high 40s if you're reading this... did you use any specific stats on the exam? i know examples are important, but is it necessary to know specific numbers, because there's so many of them