Official Economics Exam Discussion

[darcyallen]

that's what i got. i remember 0.8 and it being C.

I was talking to my class... and they arn't really that stupid... and basically no one knew how to work that out... haha. easy 2 marks over most people.

i really should go and study for legal...

[mskwmskw]

my exams r over, so  no more studying for me. have fun with legal

[darcyallen]

ohhhhh.

i've got methods, legal and chem to go.

can't wait... haha.


i'm off.

thanks mate.

[113489]

From mr. wood:

"The very last question was particularly tricky – when the dollar appreciates, the impact on the net income component of the CAD will depend on how much of our debt is written in foreign currencies."

considering our debt is largely in foreign currencies, (i think..? the US dollar is the biggest trading currency anyway) then i assume that it will help the net incomes account, not negatively impact it.

anyone else find any more info about this question?

[mskwmskw]

one budgetary policy and one MER that has influenced or improved (cant remember exactly the question) ou supply side potential and thereby eco growth

budgetary - reduction in company tax

MER - tariff reduction in the car industry

are these two suitable answers?

[bolz]

In regards to Q 15 of the multis, C is the correct answer

Anybody who has the economics checkpoints book for 2008, I recommend you flick to pg 56. Question 48 is the exact same question as was asked yesterday, and guess what the correct answer is? C!

I think a lot of people didn't read the question properly; you are asked to give the answer that is FALSE. C is false because a shift to the left WOULD NOT result in higher income households receiving a large share of total household income. A shift to the left would result in greater equality.

Can anybody else back this up?

[darcyallen]

Q15 answer was D definately

it asked which was false.


the answer to D said something like:

a shift in income where higher income earners recieve higher incomes (not sure what it was - but it was something that exaggerated inequality) would cause the lorenz curve to shift to the left.

This is false - if there is higher inequality the lorenz curve shifts to the right (Not the left) and there is a higher Gini coefficient (not a lower one)

In relation to checkpoints - the answer "C" is very similar to answer "D" in the exam - therfore D is correct.

[darcyallen]

one budgetary policy and one MER that has influenced or improved (cant remember exactly the question) ou supply side potential and thereby eco growth

budgetary - reduction in company tax

MER - tariff reduction in the car industry

are these two suitable answers?

Yeah they are, but the question also asked you to relate it to efficiency in the allocation of resources - and i'm guessing there might be one of the marks for each part allocated to describing a particular type of efficiency impacted (eg. dynamic, intertemporal) and the way this impacts on the rate of economic growth.

But yes, those two examples would be sufficient, as long as you stepped out the process - and made sure you included examples that were 2005-2008 (I think that was in that question too)

[champorado]

Q15 on the exam:
Which of the following statements about the distribution for country A is FALSE?
A) the gini coefficient for country A is between zero and one.
B) The shaded area on the above chart indicates the extent of the inequlity in the distrivution of income for country A.
C) any change in the distribution of income for country A that caused the Lorenz curve to move to the left would represent a reduction in the inequality of the distribution of income.
D) A change in the distribution of income which involved higher income households receiving a larger share of income would move the lorenz curve to the left.

from jod333.

From checkpoints:
C) The lorenz curve would shift to the left if a change in the distribution of household income involved in higher income households receving a large share of total household income.

So you chose C in the exam because a similar question in checkpoints had the answer as C? Even though the option outlined in checkpoints is most similar to option D in the exam? Well done.

fake edit: darcy's already said it, but here's the question anyway.

[bolz]

one budgetary policy and one MER that has influenced or improved (cant remember exactly the question) ou supply side potential and thereby eco growth

budgetary - reduction in company tax

MER - tariff reduction in the car industry

are these two suitable answers?

Yeah they are, but the question also asked you to relate it to efficiency in the allocation of resources - and i'm guessing there might be one of the marks for each part allocated to describing a particular type of efficiency impacted (eg. dynamic, intertemporal) and the way this impacts on the rate of economic growth.

But yes, those two examples would be sufficient, as long as you stepped out the process - and made sure you included examples that were 2005-2008 (I think that was in that question too)

doubt that you would have to explain each type of efficiency. A simply explanation of how efficiency is improved by the policy would have sufficed imo

[Mark]

one budgetary policy and one MER that has influenced or improved (cant remember exactly the question) ou supply side potential and thereby eco growth

budgetary - reduction in company tax

MER - tariff reduction in the car industry

are these two suitable answers?

I used company tax reductions for budgetary too, but only because I couldn't think of anything else. Pretty sure the last time company taxes were reduced (from 33% to 30%) was in 2002, outside the time period.

[darcyallen]

one budgetary policy and one MER that has influenced or improved (cant remember exactly the question) ou supply side potential and thereby eco growth

budgetary - reduction in company tax

MER - tariff reduction in the car industry

are these two suitable answers?

Yeah they are, but the question also asked you to relate it to efficiency in the allocation of resources - and i'm guessing there might be one of the marks for each part allocated to describing a particular type of efficiency impacted (eg. dynamic, intertemporal) and the way this impacts on the rate of economic growth.

But yes, those two examples would be sufficient, as long as you stepped out the process - and made sure you included examples that were 2005-2008 (I think that was in that question too)

doubt that you would have to explain each type of efficiency. A simply explanation of how efficiency is improved by the policy would have sufficed imo

but wasn't it an 8 mark question... or was that six...?
it if it was 8...
4 for each one...
2 for explaination of policy/example, 1 for relation to efficiency and 1 to relation of economic growth... ?

[mskwmskw]

I used company tax reductions for budgetary too, but only because I couldn't think of anything else. Pretty sure the last time company taxes were reduced (from 33% to 30%) was in 2002, outside the time period.
[/quote]

do u reckon the examiners would know that?

[marbs]

off course they would... but i'm not too sure if you'd lose marks.

I thought there was changes in 2006. That sucks if u lose marks cos thats a good answer.

They were pretty tight saying between 2005-2008.


I said one from this years budget (building fund), hopes it alright

[paully08]

off course they would... but i'm not too sure if you'd lose marks.

I thought there was changes in 2006. That sucks if u lose marks cos thats a good answer.

They were pretty tight saying between 2005-2008.


I said one from this years budget (building fund), hopes it alright

i was thinking of the building fund, but has that actually been implemented yet?
cos the question asked for one that was implemented.