Economics HSC marathon (2 Viewers)

[Magical Kebab]

Will be interesting to see how this goes. Less problem solving, this is primarily for revision etc.

Same rules apply but also allocate marks.
Good idea would be to get questions from past papers, mainly on the global economy and Australia's place in the global economy.

Also to make things a little more effective, the person who answers a question, mark the one answered previous to urs and include why the person lost marks etc. (but this obviously cant be done now).

Outline the role of the World Trade Organisation. (2 marks)

 

[Examine]

The role of the WTO is to implement and advance global trade agreements and to resolve trade disputes between economies. Upholding the principles of non-discrimination and and national treatment, the WTO essentially contributes to the removal of trade barriers facilitating increased economic integration between countries.

Distinguish the roles of the WTO and the IMF in promoting globalisation. (4 marks)

 

[theind1996]

The role of the WTO is to implement and advance global trade agreements and to resolve trade disputes between economies. Upholding the principles of non-discrimination and and national treatment, the WTO essentially contributes to the removal of trade barriers facilitating increased economic integration between countries.

Distinguish the roles of the WTO and the IMF in promoting globalisation. (4 marks)

International Monetary Fund’s main role is to maintain financial stability, especially in FOREX markets and to play a critical role in lessening effects of financial crises regionally/globally. However, in contrast, the WTO plays a more critical role regarding the maintenance of trade stability, rather than financial stability. This occurs by implementing and advancing global trade agreements and resolving trade disputes between economies.

WTO’s main focus recently has been Doha Round of trade liberalisation talks launched in 2001, which were unsuccessful due to disagreements between developing and developed nations. This contrasts the IMF's successful “rescue packages” to help individual economies in crisis, such as providing $159 bil in 2012 to many economies, including the PIGS, demonstrating that the IMF has been more successful in recent years.

Explain why sustained economic growth may not lead to positive economic development. (2 marks)

 

[Examine]

International Monetary Fund’s main role is to maintain financial stability, especially in FOREX markets and to play a critical role in lessening effects of financial crises regionally/globally. However, in contrast, the WTO plays a more critical role regarding the maintenance of trade stability, rather than financial stability. This occurs by implementing and advancing global trade agreements and resolving trade disputes between economies.

WTO’s main focus recently has been Doha Round of trade liberalisation talks launched in 2001, which were unsuccessful due to disagreements between developing and developed nations. This contrasts the IMF's successful “rescue packages” to help individual economies in crisis, such as providing $159 bil in 2012 to many economies, including the PIGS, demonstrating that the IMF has been more successful in recent years.

Explain why sustained economic growth may not lead to positive economic development. (2 marks)

Economic growth may not lead to positive economic development due to the resultant increase of environmentally unsustainable practices and the widening of GNI between the advanced and emerging and developing countries. This has detrimental effects of the living standards of people in developing and emerging economies, and thus, does not lead to positive development of economic and social infrastructure.

Discuss the advantages and disadvantages of free trade. (4 marks)

 

[Magical Kebab]

Economic growth may not lead to positive economic development due to the resultant increase of environmentally unsustainable practices and the widening of GNI between the advanced and emerging and developing countries. This has detrimental effects of the living standards of people in developing and emerging economies, and thus, does not lead to positive development of economic and social infrastructure.

Discuss the advantages and disadvantages of free trade. (4 marks)

Countries may benefit from free trade by way of specialisation in accordance to the principles of comparative and absolute advantage. Increased specialisation leads to economies of scale, hence lowering average costs of production and reaching technical efficiency. In contrasts to the benefits, free trade presents a number of issues to individual firms as inequality arises within domestic markets. Certain firms may find it difficult to compete against established firms and may also lose resources as they are attracted towards more competitive industries. Australian industries have recently been experiencing this, as the mining and agriculture industries have been attracting resources away from the clothes, textiles and footwear industries due to allocative efficiency.

Edit: new question

Distinguish between import tariff and import quota. (2 marks)

 

[Examine]

Countries may benefit from free trade by way of specialisation in accordance to the principles of comparative and absolute advantage. Increased specialisation leads to economies of scale, hence lowering average costs of production and reaching technical efficiency. In contrasts to the benefits, free trade presents a number of issues to individual firms as inequality arises within domestic markets. Certain firms may find it difficult to compete against established firms and may also lose resources as they are attracted towards more competitive industries. Australian industries have recently been experiencing this, as the mining and agriculture industries have been attracting resources away from the clothes, textiles and footwear industries due to allocative efficiency.

Edit: new question

Distinguish between import tariff and import quota. (2 marks)

A tariff is a form of protection which taxes imports in an attempt to increase the competitiveness of domestic businesses, while quotas are another form of protection and aim to achieve the same objective, though are a restriction of imports from overseas countries.

Explain the role of free trade agreements in achieving the increased economic integration of countries (2 marks)

 

[Examine]

Btw are we trying to make good answers or answers that may not be as good though will receive full marks?

 

[Magical Kebab]

Btw are we trying to make good answers or answers that may not be as good though will receive full marks?

Well I just thought we do this:

Answer then post question, mark answer above and why they lost marks - answer their question - post new one, mark question above - answer question above - ask new question etc....

 

[Marc26]

A tariff is a form of protection which taxes imports in an attempt to increase the competitiveness of domestic businesses, while quotas are another form of protection and aim to achieve the same objective, though are a restriction of imports from overseas countries.

Explain the role of free trade agreements in achieving the increased economic integration of countries (2 marks)

The role of free trade agreements is to create a formal relationship between two countries so that preferential trade can occur. A benefit of free trade agreements includes trade liberalisation which as result, causes growth and encourages countries to lower their trade barriers and hence economic integration between countries is increased.

What is the difference between underemployment and hidden unemployment? (2 marks)

 

[RivalryofTroll]

The role of free trade agreements is to create a formal relationship between two countries so that preferential trade can occur. A benefit of free trade agreements includes trade liberalisation which as result, causes growth and encourages countries to lower their trade barriers and hence economic integration between countries is increased.

What is the difference between underemployment and hidden unemployment? (2 marks)

Underemployment refers to a situation where a person, who is working less than full time, but wants to work for more hours whilst hidden underemployment refers to a situation where someone can be considered unemployed but is not part of the official unemployment statistics as they do not fit the criteria of being unemployed.

Not an actual question but this might help your economics research skills and realising the application of economics in real life:
Recently,
http://www.abc.net.au/news/2012-12-20/swan-dumps-surplus-pledge/4438508

Is this good news or bad news? Argue your case with year 11 knowledge perhaps?

Whilst, a deficit can be healthy for economic growth and domestic employment, a surplus would be better for external stability and acts as a buffer in times of weak growth/recession in the US and EU.

 

[Examine]

Analyse the reasons for differences in Economic Development between nations (5 marks)

 

[Devozzzz]

awkward my school is going topic 3,4,1,2...

 

[Sy123]

Explain why The Traded Weighted Index is beneficial for economists and why it is not as volatile as exchange rates (3 Marks)

 

[Sy123]

Explain how a mining boom in Australia can have negative effects on the economy overall (3 Marks)

 

[Sy123]

Explain why underlying inflation rate is normally less volatile than headline inflation rates (2 marks)

 

[Kipling]

Explain how a mining boom in Australia can have negative effects on the economy overall (3 Marks)

A mining boom in Australia can lead to increased foreign direct investment into Australia. This investment is normally serviced in the form of profits, dividends or rent and this represents a leakage from the circular flow of income. This leakage will reduce future economic growth. Furthermore, a mining boom can lead to a sustained appreciation of the Australian currency in foreign exchange markets, .This means exports have will become more expensive, having a negative impacts on manufacturers and services.

^^Not sure If I have learnt enough yet, but I had a crack anyway?

 

[Sy123]

A mining boom in Australia can lead to increased foreign direct investment into Australia. This investment is normally serviced in the form of profits, dividends or rent and this represents a leakage from the circular flow of income. This leakage will reduce future economic growth. Furthermore, a mining boom can lead to a sustained appreciation of the Australian currency in foreign exchange markets, .This means exports have will become more expensive, having a negative impacts on manufacturers and services.

^^Not sure If I have learnt enough yet, but I had a crack anyway?

That seems good to me, nice work.

Explain the difference between 'dirtying the float' and a fixed exchange rate (2 Marks)

 

[Sy123]

How can stagflation occur? (3 Marks)

 

[Sy123]

I'm going to try and revive this as HSC approaches:

Why is deflation worse than inflation?

 

[JFX]

Explain why underlying inflation rate is normally less volatile than headline inflation rates (2 marks)

Headline inflation measures the level of prices overtime and takes into account 'one-off' price changes. However, underlying inflation takes headline inflation and removes 'one off' price changes, creating a accurate measurement of inflation in the economy, thus, being a less volatile rate of inflation.

Distinguish between private and social costs in relation to environmental sustainability. (2 Marks)