Eco question (1 Viewer)

[aero135]

Hey guys,

this is not sinking for me. Can someone please explain this question.

Which of the following is an example of a reform in a factor market ?

Answer the removal of miinimum wage levels for specific industries.

 

[gnrlies]

Well it might be useful to define the question.

Firstly a factor market is a market for a factor of produciton (e.g. land labour capital enterprise).

Secondly a reform is a change in the policies governing that particular market.

So that explains why the example you gave is a factor market reform.

 

[aero135]

got another question..

5 This table shows average exchange rate data for a nation.

Year Trade weighted index $US
2005 70.7 0.76
2006 68.9 0.81
2007 69.5 0.79
2008 67.6 0.92

Which of the following statements describes the impacts of the changes in the value of the
exchange rate for this nation?

(A) In 2006 imported goods from the United States became more expensive and exports to all
trading partners became less competitive
(B) In 2007 the price of exports to all of the economy’s trading partners fell
(C) In 2008 imports from all parts of the world became cheaper
(D) In 2007 exports to the United States became more competitive and import prices from the
rest of the world rose.

 

[gnrlies]

I cannot see that the above question has an answer. I might be looking at it incorrectly but is that the same problem you are having?

Each option is incorrect as far as I can see.

Where is this question from?

 

[mrhorseham]

D?

 

[Zak Ambrose]

there is no answer. have you copied the question out correctly?

 

[bmn]

As others have said, there is no answer.

A, B, and C rule each other out by following patterns. And D is just plain wrong.

 

[M@ster P]

Hi guys can you help me with this question it from the 2004 HSC paper..

Describe TWO problems associated with structural change in the Australian
economy.

So far i got unemployment, as trade barriers are reduced..


I cant think of anything else

 

[Zak Ambrose]

key words: problems - structural change.
all i can think of is the structural unemployment and all the social and economic problems associated with unemployment.
perhaps also structural change acts as a constraint on economic growth in the short term as the resources of those structurally unemployed are not being put to use.

hope that helps.

 

[M@ster P]

Hi guys also one more question.

Discuss the impacts on the Australian economy of the improvements in the Trade weighted index between Year 1 (48) to Year 2 (58). --------5marks (CSSA 2008 trial)

I have no clue so much help needed.


Thanks

 

[M@ster P]

key words: problems - structural change.
all i can think of is the structural unemployment and all the social and economic problems associated with unemployment.
perhaps also structural change acts as a constraint on economic growth in the short term as the resources of those structurally unemployed are not being put to use.

hope that helps.

Hi thanks,

So what you are saying one problem of structural change is unemployment, and then you say another problem of structural change is the problems related to unemployment such as increase welfare payments.

Are you allowed to do this? Because it looks like your continuing on one point and making it appear to be 2 problems.

 

[Zak Ambrose]

Hi thanks,

So what you are saying one problem of structural change is unemployment, and then you say another problem of structural change is the problems related to unemployment such as increase welfare payments.

Are you allowed to do this? Because it looks like your continuing on one point and making it appear to be 2 problems.

this is how i would answer it...

1 - structural change usually results in structural unemployment. short term cost of retraining the structural unemployed.
2 - short term constraint on output as a result of structural change.

 

[Zak Ambrose]

Hi guys also one more question.

Discuss the impacts on the Australian economy of the improvements in the Trade weighted index between Year 1 (48) to Year 2 (58). --------5marks (CSSA 2008 trial)

I have no clue so much help needed.


Thanks

ok. the $A appreciates against the TWI.
so we discuss the economic impacts of an $A appreciation.
- Capital (K) outflow may occur as foreign assets appear cheaper.
- Imported (M) inflation will be reduced, which improves real incomes (Y).
- our international competitiveness will be reduced, but this will be slightly offset by the fall in inflation from the fall in the price of M.
- improve the trade balance in the short run, but deteriorate it in the long run.

both positive and negative impacts.

 

[roli]

got another question..

5 This table shows average exchange rate data for a nation.

Year Trade weighted index $US
2005 70.7 0.76
2006 68.9 0.81
2007 69.5 0.79
2008 67.6 0.92

Which of the following statements describes the impacts of the changes in the value of the
exchange rate for this nation?

(A) In 2006 imported goods from the United States became more expensive and exports to all
trading partners became less competitive
(B) In 2007 the price of exports to all of the economy’s trading partners fell
(C) In 2008 imports from all parts of the world became cheaper
(D) In 2007 exports to the United States became more competitive and import prices from the
rest of the world rose.

Oh crap. Why can't the answer be (D)? The AUD depreciated against the USD from 2006, which would make exports more competitive, and the TWI appreciated from 2006, making imports more expensive? Unless we're comparing the changes of the AUD in 2007 to the 2005 year instead of 2006, wouldn't D be a correct answer? I feel stupid for missing something.

 

[Scrub Ya Flaps]

Oh crap. Why can't the answer be (D)? The AUD depreciated against the USD from 2006, which would make exports more competitive, and the TWI appreciated from 2006, making imports more expensive? Unless we're comparing the changes of the AUD in 2007 to the 2005 year instead of 2006, wouldn't D be a correct answer? I feel stupid for missing something.

i know how you feel about economics haha but!... YOU said the AUD depreciated against the US, but it was actually the opposite, it went from 0.79 in 2007 to 0.92 in 2008, thus an appreciation. Similarly, YOU said that the TW1 appreciated from 2006. in 2006 it was 68.9 and in 2008 it was 67.8, thats a decrease and so a depreciation not an appreciation..

i'm not the bet at ECONOMICS but im pretty sure im right... you jsut got the two columns mixed up i think

 

[roli]

The answer specified the value of the AUD in 2007, and not in 2008 like what you're saying.

 

[Zak Ambrose]

i know how you feel about economics haha but!... YOU said the AUD depreciated against the US, but it was actually the opposite, it went from 0.79 in 2007 to 0.92 in 2008, thus an appreciation. Similarly, YOU said that the TW1 appreciated from 2006. in 2006 it was 68.9 and in 2008 it was 67.8, thats a decrease and so a depreciation not an appreciation..

i'm not the bet at ECONOMICS but im pretty sure im right... you jsut got the two columns mixed up i think

the possible answer D involved the movement from 2006 to 2007.
D says In 2007 exports to the United States became more competitive and import prices from the rest of the world rose.
from 2006 to 2007 the $A:
- appreciated against the TWI
- depreciated against the US

this means the first part of D is correct - exports to the United States became more competitive
But the second part import prices from the rest of the world rose. is incorrect as a appreciation of the $A reduces import prices.

therefore D is not the answer.

 

[roli]

Urgh, got my effects mixed up. I'm gonna bomb multiple choice at this rate. Thanks for clarifying.

 

[Scrub Ya Flaps]

the possible answer D involved the movement from 2006 to 2007.
D says In 2007 exports to the United States became more competitive and import prices from the rest of the world rose.
from 2006 to 2007 the $A:
- appreciated against the TWI
- depreciated against the US

this means the first part of D is correct - exports to the United States became more competitive
But the second part import prices from the rest of the world rose. is incorrect as a appreciation of the $A reduces import prices.

therefore D is not the answer.

i had this typed up in the reply bar for ages and forgot to post, i was gonna say the exact same thing, it can't be the 'rest of the world' if the US is not included. TY haha

 

[M@ster P]

Hi guys got a couple more questions which I need help with, it would benefit other people as well.

1. Explain how a rise in domestic interest rates for an economy could affect TWO
components of its Balance of Payments.

- So far i got an increase in interest rates, will increase foreign direct investment/savings appreciating the $A, reducing international competitveness which may lead a BOGS deficit and from there a CAD

- need second

2. Outline two features of Australian Workplace agreements - have no clue

3. What is a product market? - I wrote a market which produces goods and services - is this correct?

4. Explain the likely impact on Australia’s Balance of Payments of the decline in
the Trade Weighted Index from Year 3 to Year 4.

- Is a decline in the TWI related to the decline in the exchange rate? so do we discuss the impact of this on balance of payments, i.e. may reduce CAD due to increase international compettiveness as exports are cheaper


7. Sorry guys the table couldnt dome out but it was question 12 of 2006 HSC MC, answer was A

According to the information in the table, what is the real GDP ($bn) in Year 3 compared to the base year?
(A)
$656.0
(B)
$721.6
(C)
$931.8
(D)
$1025.0

8. Other things being equal, what would be the impact of an increase in net capital inflow on the Australian currency? (Answer A what is net capital inflow?)

(A)
There would be an increase in the demand for the Australian dollar and an appreciation of the currency.
(B)
There would be a decrease in the demand for the Australian dollar and a depreciation of the currency.
(C)
There would be an increase in the supply of the Australian dollar and an appreciation of the currency.
(D)
There would be a decrease in the supply of the Australian dollar and a
depreciation of the currency.


9. What is the equilibrium level of income if C = 100 + 0.8Y and I = 40?
(A) 100
(B) 140
(C) 500
(D) 700

10. - sorry couldnt include diagram but question was from 2003 HSC question 9
What is the level of aggregate demand at the equilibrium level of income?
(A) 0L
(B) LK
(C) 0K
(D) 0J

11. If Y = 200, C = 50, I = 20, G = 40 and M = 30, what is the value of exports?
(A) 60
(B) 110
(C) 120
(D) 140

12. Which of the following could assist economic growth in developing countries?
(A) An increase in the rate of taxation
(B) A decrease in foreign investment
(C) A decrease in the terms of trade
(D) An increase in the level of education

(thought was C but answer was D - isnt this economic development?)

17 Which measure could be implemented by a government attempting to improve environmental management?
(A) A reduction in the cost of petrol production
(B) An increase in tax concessions for using solar energy
(C) An increase in incentives for coal production
(D) The replacement of renewable resources by non-renewable resources.

(why is answer B - what are tax concessions?)