HSC 2015 Economics Marathon (1 Viewer)

[Ekman]

Re: 2015 HSC Economics Marathon

What about adding a sentence or two on how the ageing population will increase the burden on health services (especially public health services) as many individuals are retiring and the workforce is decreasing, placing constraints on the limited health workers and the system overall. So the gov needs to provide funding for extra health services. And linking this to the labour market if the elderly are using up all the health services then this will impact other workers in the economy as if they are not provided with health services, their productivity in the long run might reduce.

Hmm doesn't seem strong to me, because one can argue that the extra burden on health services will just be limited to extra payments the government needs to make. Like it will continue giving the same healthcare benefits for the working people, but now they need to pay more for the welfare payments for the elderly.

 

[rrulez]

Re: 2015 HSC Economics Marathon

Assess the economics consequences of an unequal distribution of global income and wealth. 5 marks.

 

[rrulez]

Re: 2015 HSC Economics Marathon

Analyse the impacts of changes in the components of the balance of payments on the value of the Australian dollar

 

[Drsoccerball]

Re: 2015 HSC Economics Marathon

Assess the economics consequences of an unequal distribution of global income and wealth. 5 marks.

Unequal distribution of global income and wealth would cause economic catastrophes. First of all the gap between rich vs poor increases. If theyre in a country such as Australia the Government would have to give them money for welfare benefits etc... By giving them money without them doing any work the Australian dollar depreciates causing the standard of living to also decrease. Since country's such as Australia are globalised they are strongly linked with other countries through imports/exports. The more money Australia gives out the less Australia imports and therefore Australia would have barely any resources. Australia will also have to buy the imports for more expensive and thus as pay back countries would stop buying coal, wool etc... from Australia. Australia would cause a domino effect taking out the main powers such as America, China etc... who really heavily on Australia's resources. Since those countries are also globalissed it would be a chain reaction causing every country's stockmarket that is interdependent with other countries to crash. This would cause the second financial crisis.The poor people because of their unfair treatment could possibly take this time of instability to start a coup and take over Australia. One by one every country would be over thrown by the previously poor people because the government didnt take care of them well enough. The world would be chaotic. The icecaps by this time would all be melted and most of the world would be flooded except for bankstown. The Earth probably stopped spinning aswell who knows

 

[Gabriel Moussa]

Re: 2015 HSC Economics Marathon

Unequal distribution of global income and wealth would cause economic catastrophes. First of all the gap between rich vs poor increases. If theyre in a country such as Australia the Government would have to give them money for welfare benefits etc... By giving them money without them doing any work the Australian dollar depreciates causing the standard of living to also decrease. Since country's such as Australia are globalised they are strongly linked with other countries through imports/exports. The more money Australia gives out the less Australia imports and therefore Australia would have barely any resources. Australia will also have to buy the imports for more expensive and thus as pay back countries would stop buying coal, wool etc... from Australia. Australia would cause a domino effect taking out the main powers such as America, China etc... who really heavily on Australia's resources. Since those countries are also globalissed it would be a chain reaction causing every country's stockmarket that is interdependent with other countries to crash. This would cause the second financial crisis.The poor people because of their unfair treatment could possibly take this time of instability to start a coup and take over Australia. One by one every country would be over thrown by the previously poor people because the government didnt take care of them well enough. The world would be chaotic. The icecaps by this time would all be melted and most of the world would be flooded except for bankstown. The Earth probably stopped spinning aswell who knows

I'm going to sock you -_-

 

[Drsoccerball]

Re: 2015 HSC Economics Marathon

I'm going to sock you -_-

you're lucky i dropped i would've been coming first

 

[Study_like_a_nerd]

Re: 2015 HSC Economics Marathon

Unequal distribution of global income and wealth would cause economic catastrophes. First of all the gap between rich vs poor increases. If theyre in a country such as Australia the Government would have to give them money for welfare benefits etc... By giving them money without them doing any work the Australian dollar depreciates causing the standard of living to also decrease. Since country's such as Australia are globalised they are strongly linked with other countries through imports/exports. The more money Australia gives out the less Australia imports and therefore Australia would have barely any resources. Australia will also have to buy the imports for more expensive and thus as pay back countries would stop buying coal, wool etc... from Australia. Australia would cause a domino effect taking out the main powers such as America, China etc... who really heavily on Australia's resources. Since those countries are also globalissed it would be a chain reaction causing every country's stockmarket that is interdependent with other countries to crash. This would cause the second financial crisis.The poor people because of their unfair treatment could possibly take this time of instability to start a coup and take over Australia. One by one every country would be over thrown by the previously poor people because the government didnt take care of them well enough. The world would be chaotic. The icecaps by this time would all be melted and most of the world would be flooded except for bankstown. The Earth probably stopped spinning aswell who knows

This response made my night
I applaud

 

[rrulez]

Re: 2015 HSC Economics Marathon

Unequal distribution of global income and wealth would cause economic catastrophes. First of all the gap between rich vs poor increases. If theyre in a country such as Australia the Government would have to give them money for welfare benefits etc... By giving them money without them doing any work the Australian dollar depreciates causing the standard of living to also decrease. Since country's such as Australia are globalised they are strongly linked with other countries through imports/exports. The more money Australia gives out the less Australia imports and therefore Australia would have barely any resources. Australia will also have to buy the imports for more expensive and thus as pay back countries would stop buying coal, wool etc... from Australia. Australia would cause a domino effect taking out the main powers such as America, China etc... who really heavily on Australia's resources. Since those countries are also globalissed it would be a chain reaction causing every country's stockmarket that is interdependent with other countries to crash. This would cause the second financial crisis.The poor people because of their unfair treatment could possibly take this time of instability to start a coup and take over Australia. One by one every country would be over thrown by the previously poor people because the government didnt take care of them well enough. The world would be chaotic. The icecaps by this time would all be melted and most of the world would be flooded except for bankstown. The Earth probably stopped spinning aswell who knows

State Ranking economics for fun.

 

[Ekman]

Re: 2015 HSC Economics Marathon

Unequal distribution of global income and wealth would cause economic catastrophes. First of all the gap between rich vs poor increases. If theyre in a country such as Australia the Government would have to give them money for welfare benefits etc... By giving them money without them doing any work the Australian dollar depreciates causing the standard of living to also decrease. Since country's such as Australia are globalised they are strongly linked with other countries through imports/exports. The more money Australia gives out the less Australia imports and therefore Australia would have barely any resources. Australia will also have to buy the imports for more expensive and thus as pay back countries would stop buying coal, wool etc... from Australia. Australia would cause a domino effect taking out the main powers such as America, China etc... who really heavily on Australia's resources. Since those countries are also globalissed it would be a chain reaction causing every country's stockmarket that is interdependent with other countries to crash. This would cause the second financial crisis.The poor people because of their unfair treatment could possibly take this time of instability to start a coup and take over Australia. One by one every country would be over thrown by the previously poor people because the government didnt take care of them well enough. The world would be chaotic. The icecaps by this time would all be melted and most of the world would be flooded except for bankstown. The Earth probably stopped spinning aswell who knows

I'm going to sock you -_-

you're lucky i dropped i would've been coming first

This response made my night
I applaud

State Ranking economics for fun.

Far this derail though

Lets move on with actual economics:

Explain the causes of cyclical and structural unemployment - 4 marks

 

[Gabriel Moussa]

Re: 2015 HSC Economics Marathon

Far this derail though

Lets move on with actual economics:

Explain the causes of cyclical and structural unemployment - 4 marks

Cyclical unemployment, is caused by a decrease in aggregate demand, and hence the derived demand for labour needed in production. Downturns in the business cycle are derived from lower global economic conditions (affecting X-M) contractionary fiscal and monetary policy, and domestic consumer sentiment.
+ Dramatic increase in the cost of wages/ productivity increase would also increase cyclical u.e.

Structural unemployment, the mismatch in skills of the unemployed and the labour market, are derived from structural change in the economy. Trade liberalisation, which causes inefficient industries to close and leave a large number of structurally u/e in the short run.
+ Also inadequate training leads to structural u.e.

 

[Ekman]

Re: 2015 HSC Economics Marathon

Cyclical unemployment, is caused by a decrease in aggregate demand, and hence the derived demand for labour needed in production. Downturns in the business cycle are derived from lower global economic conditions (affecting X-M) contractionary fiscal and monetary policy, and domestic consumer sentiment.
+ Dramatic increase in the cost of wages/ productivity increase would also increase cyclical u.e.

Structural unemployment, the mismatch in skills of the unemployed and the labour market, are derived from structural change in the economy. Trade liberalisation, which causes inefficient industries to close and leave a large number of structurally u/e in the short run.
+ Also inadequate training leads to structural u.e.

One thing to add for the structural unemployment part. Technology advancements cause the creation of new jobs but a loss of old jobs, resulting in the people getting fired because of technology advancements, are structurally unemployed as they cant be rehired without attaining new skills.

 

[Gabriel Moussa]

Re: 2015 HSC Economics Marathon

Assess how monetary influences patterns of domestic economic activity (4)

 

[Ekman]

Re: 2015 HSC Economics Marathon

Assess how monetary influences patterns of domestic economic activity (4)

Im assuming you meant to say monetary policy.

The monetary policy influences the level of economic activity through the domestic market operations of purchasing and selling of government securities in the short term money market. The monetary policy uses its transmission mechanism to influence the interest rates, through these DMO's, as domestic banks have exchange settlement accounts with the RBA. The level of interest rates dictates the economic activity as it impacts the wage levels of individuals. By purchasing government securities, the RBA increases the supply of money in the short term money market, resulting in an increased fluidity of money and downward pressure of interest rates. The decrease of interest rates, discourages saving and encourages spending, resulting in the stimulation of AD, and further increasing economic activity. By selling government securities, the monetary policy works in opposite, resulting in an increase in interest rates, further restricting economic activity through encouraging saving and discouraging spending.

 

[Gabriel Moussa]

Re: 2015 HSC Economics Marathon

Yeah I did
Ur answer is on point though ty
Although If it was worth more marks you could have spoken about the effect on assets (higher interest rates create lower demand for housing/capital causing asset prices to decrease)

 

[Ekman]

Re: 2015 HSC Economics Marathon

Yeah I did
Ur answer is on point though ty
Although If it was worth more marks you could have spoken about the effect on assets (higher interest rates create lower demand for housing/capital causing asset prices to decrease)

But how does this impact the domestic economic activity though?

 

[Gabriel Moussa]

Re: 2015 HSC Economics Marathon

But how does this impact the domestic economic activity though?

Asset price effect --> precautionary motive for savings (from the prelim course)
A decreased price of assets due to lower demand (driven by the higher IR) will cause asset owners to decrease consumption due to the uncertainty about the future of their assets i.e. a precautionary motive for savings
Its a tiny link but if it was one of those 6 markers I would definitely give it a mention

 

[Study_like_a_nerd]

Re: 2015 HSC Economics Marathon

Why is superannuation classified as wealth?

 

[Gabriel Moussa]

Re: 2015 HSC Economics Marathon

what is the three sector equilibrium level of income if C = 100 + 0.8Y and I = 40 (1mark)

 

[Study_like_a_nerd]

Re: 2015 HSC Economics Marathon

what is the three sector equilibrium level of income if C = 100 + 0.8Y and I = 40 (1mark)

Mpc=0.8
MPs=0.2
S=I
Therefore S= 40
40= -100 +0.2 Y
100 is negative because consumption is 100 so a loss of 100 units of savings must have occurred
Solve for Y
y=700

 

[Gabriel Moussa]

Re: 2015 HSC Economics Marathon

The reason why super is classified as wealth is because super is a form of saving that is not consumed till you retire and is an asset held by employees.