Section II : Short Answer (2 Viewers)

[Rafy]

Share your opinons of Questions 21-24.

 

[fr3ddy8]

i reckon some were easy, some were hard, the big mark questions were confusing,
btw whats factor market and product market?

 

[sideshowtim]

yeah i certainly can't remember learning about the factor market and the product market. had no idea.

 

[jared_88]

i reckon some were easy, some were hard, the big mark questions were confusing,
btw whats factor market and product market?

Remember the circular flow diagram from Yr 11:

Factor Market is the market for inputs of production e.g. land, labour, capital, enterprise

Product Market is the market for goods and services in the economy esp. household sector (consumers)

I think thats right anyway.

 

[big_al]

Remember the circular flow diagram from Yr 11:

Factor Market is the market for inputs of production e.g. land, labour, capital, enterprise

Product Market is the market for goods and services in the economy esp. household sector (consumers)

I think thats right anyway.

yep thats rite, i didnt study, i onli knew that from general knowledge because of factors of production and products is just products lol

 

[simonhorowitz]

factor market is where the factors of production are bought and sold i.e. land labour, capital

product market is where consumeres purchase the final good or service i.e. a shop

 

[zedzed]

what was the last short answer question? i think i rushed that one.

oh and how many marks was it worth?

 

[Billy Shears]

Can someone remind me what the short answer questions were on, I think I did alright but all I can remember about them is some vague stuff about maybe an income inequality question and balance of payments question and maybe a micro or labour market question?

 

[Benmc]

what was the last short answer question? i think i rushed that one.

oh and how many marks was it worth?

yeah i fudged that one. It was to do with the relationship between a rise in interest rates and two accounts in the balance of payments.

I went the long way and talked about it appreciating exchange rates rather than talk straightforward about it minimising aggregate demand and so on.

Dammmit Hopefully still 2-3 marks.

 

[yupgisonyun]

what was the last short answer question? i think i rushed that one.

oh and how many marks was it worth?

Come to think of it..
what was the last question...
hmm.. i completely forgot all the short answer questions...
-_-;;;

 

[Sparcod]

I've forgotten them too. I think the last short-answer was one about exchange rates and balance of payments.

 

[zedzed]

yeah i fudged that one. It was to do with the relationship between a rise in interest rates and two accounts in the balance of payments.

I went the long way and talked about it appreciating exchange rates rather than talk straightforward about it minimising aggregate demand and so on.

Dammmit Hopefully still 2-3 marks.

oh yea! i misread the question and thought it said impact on two components of the CURRENT ACCOUNT! so i was like... screw it, and i turned over. wasn't it only worth 3 marks? or am i dreaming?

 

[jared_88]

oh yea! i misread the question and thought it said impact on two components of the CURRENT ACCOUNT! so i was like... screw it, and i turned over. wasn't it only worth 3 marks? or am i dreaming?

I so almost did that (like I literally put my ball point down on the paper then saw "Balance of Payments" n thought ooo sh!t whoops... phew lucky I realised)... Its all good zedzed I'm sure a fair few ppl made that mistake, and ul probably at least get one mark anyays becos u would hav menioned income debits on the current account.

 

[Loz_metalhead]

What was the exact question?

I really only talked about the income component and BOGS of the current account. Did it want us to talk about the KAFA aswell?

 

[yupgisonyun]

did it actually specify the two different accounts??
coz i assumed it was just any two components so i did BOGS and net income..
coz there's not much you can say about K&FA...
is there??

 

[jfan30]

explain how increase in interest rates in could affect two compents of the balance of payments (4)

 

[jfan30]

I think by two components it meant, KAFA, BOGS, Net Y.

THe other bitch was
explain how fiscal pol. coudl be used by govt to reduce a deficit on the current account. (5 marks)

 

[wce06]

I think by two components it meant, KAFA, BOGS, Net Y.

THe other bitch was
explain how fiscal pol. coudl be used by govt to reduce a deficit on the current account. (5 marks)

I talked about how fiscal could reduce CAD through helping its structural and cyclical components - structurally through decreasing the S-I gap (Eg through the changes to super and elimination of PSUD) adding to the pool of domestic savings thus decreasing the need to rely on foreign funds, and cyclical through allocating expenditure to infrastructure needed for X industries.

What did other people write?

 

[ScottyG]

"Explain how increase in interest rates in could affect two compents of the balance of payments."

Warning: heavily summarised:

Interest rates rise. Aggregate demand falls. Import consumption falls. Balance of goods and services component of Current Account improves.

Interest rates rise. Investors more inclined to invest in Australia due to greater returns on funds. Invested funds contribute directly to foreign debt component of Capital and Financial Account.

"Explain how fiscal pol. coudl be used by govt to reduce a deficit on the current account."

Warning: heavily summarised:

Contractionary fiscal policy. Aggregate demand falls. Import consumption falls. Current Account Deficit improves.

Gov't runs consistent budget surpluses. Less strain is placed on the domestic savings pool. The need for local firms to borrow from overseas is reduced. Foreign debt is reduced. CAD is reduced. "Twin Deficits Argument"

And in the bin all the shit goes! Good exam!

 

[Riviet]

Sweet! 2 marks in the bag for guessing correctly that factor/product markets question.