HSC 2015 Economics Marathon (8 Viewers)

[Ekman]

Re: 2015 HSC Economics Marathon

Oops, meant retirement age, bad typo.

Well the reasoning behind it is this: People who are aged close to the retirement age are usually people who are structurally or long term unemployed. So a decrease in the retirement age will cause these people who are structurally and long term unemployed to just retire, resulting in them to be no longer considered in the NAIRU figures as they are no longer unemployed. So this will cause the NAIRU to decrease.

Conversely, an increase in the retirement age will cause those retirees to go back into the labour force, and we know that one of the costs of unemployment, especially long-term, is the loss of skills. So this loss of skills will allow them to be considered as structurally unemployed, hence increasing the NAIRU

 

[atargainz]

Re: 2015 HSC Economics Marathon

Natural rate of unemployment is the minimum level of unemployment that can be sustained without any inflationary pressures. It is also known as when there is no cyclical unemployment. It consists of structural, frictional, long term, and a bit of hidden (its from a uni term known as structural hidden). Ways to decrease NAIRU is to:
-Increase the amount of retraining programs
-Increase the efficiency of job searching services
-Decrease retirement age

Ways to increase NAIRU is to:
-Microeconomic reform
-Liberalisation of trade (its a part of micro reform, but it also causes major structural unemployment)
-Increase retirement age.

oh, so what is the difference between the natural rate of unemployment and the NAIRU? I always get them confused and didn't know they were interchangeable

 

[aanthnnyyy]

Re: 2015 HSC Economics Marathon

oh, so what is the difference between the natural rate of unemployment and the NAIRU? I always get them confused and didn't know they were interchangeable

I thought they were virtually the same thing except NAIRU is only zero cyclical unemployment with frictional and structural factors while the Natural Rate is full employment with frictional structural long term etc (the whole lot)

 

[lpodtouch]

Re: 2015 HSC Economics Marathon

Assess the consequences of an unequal distribution of income and wealth.

 

[spatula232]

Re: 2015 HSC Economics Marathon

Would environmental policies be a type of factor market reform (i.e. land)?

 

[malcolm21]

Re: 2015 HSC Economics Marathon

Would environmental policies be a type of factor market reform (i.e. land)?

That's a tough one, most of the time they will increase the costs of production which shifts the aggregate supply curve left, so it is MER? I'm not sure if I'm right since I've never seen a question asked like this

 

[milkytea99]

2015 HSC Economics Marathon

Ok, I underestimated how hard case studies short answers are. Who can answer this one: it's best if your country is China


1. Evaluate the effectiveness of one strategy that has been used to promote economic development in a country other than Australia 4 marks

 

[milkytea99]

Re: 2015 HSC Economics Marathon

Assess the consequences of an unequal distribution of income and wealth.

How many marks is this ? 4m?

 

[aanthnnyyy]

Re: 2015 HSC Economics Marathon

Ok, I underestimated how hard case studies short answers are. Who can answer this one: it's best if your country is China


1. Evaluate the effectiveness of one strategy that has been used to promote economic development in a country other than Australia 4 marks

One strategy China has implemented to promote economic development is through its Open Door Policy in the 80s. This policy established Special Economic Zones which attracted MNCs and Foreign Direct Investment through cheaper labour markets, relaxed government regulation and lower taxation. Furthermore, between 1978-1994 China also underwent drastic agricultural reforms, which saw cuts in tariffs from 32% to 19% to 15% by the early 2000s. China has also transitioned from the Commune System in the 1950s to the Household Responsibility System in the late 1980s (? I think that's the date), which has switched their agricultural production towards a more global trade oriented system.... And as illustrated these polices have been largely effective as Economic growth has increased by over 20%, population has experienced a rapid shift from a rural based peasant society to a rising middle income class, and HDI now present at 0.719 reflecting improved standards of living

 

[spatula232]

Re: 2015 HSC Economics Marathon

Would environmental policies be a type of factor market reform (i.e. land)?

bump

 

[atargainz]

Re: 2015 HSC Economics Marathon

bump

Not 100% with this, but i'm leaning towards no since environmental policies don't directly affect the cost and availability of 'land'. Targets and regulations and even market policies wouldn't affect land. However it still might be a factor market reform, one example I can think of is the Fuel Quality Standards Act 2000 (regulation), which regulates the quality of fuel entering Australia and can be a factor that restricts certain capital inputs. Again not too sure.

 

[malcolm21]

Re: 2015 HSC Economics Marathon

Can someone explain to me why the stance of the budget is contractionary. from what i've read they're putting billions into small businesses which they did not do last year

 

[spatula232]

Re: 2015 HSC Economics Marathon

Stance is purely from the year before. It just means that they aren't spending as much as last year.

 

[aanthnnyyy]

Re: 2015 HSC Economics Marathon

Can someone explain to me why the stance of the budget is contractionary. from what i've read they're putting billions into small businesses which they did not do last year

Current goal is actually reduce Budget deficit 2015-16 of -35bn to -7bn by 2018-19

 

[atargainz]

Re: 2015 HSC Economics Marathon

Can someone explain to me why the stance of the budget is contractionary. from what i've read they're putting billions into small businesses which they did not do last year

2015-16 budgeted for a projected deficit of $35.1bn which s 2.1% of GDP compared to 2014’s budget deficit of $41.4bn, which was 2.5%. Deficit is projected to become smaller so it's contractionary

 

[Evertone]

Re: 2015 HSC Economics Marathon

Not 100% with this, but i'm leaning towards no since environmental policies don't directly affect the cost and availability of 'land'. Targets and regulations and even market policies wouldn't affect land. However it still might be a factor market reform, one example I can think of is the Fuel Quality Standards Act 2000 (regulation), which regulates the quality of fuel entering Australia and can be a factor that restricts certain capital inputs. Again not too sure.

What about property rights?

 

[Evertone]

Re: 2015 HSC Economics Marathon

Anyone know how to figure this out? 2001 Barker paper.

 

[milkytea99]

Re: 2015 HSC Economics Marathon

What time are you guys planning to sleep haha

 

[malcolm21]

Re: 2015 HSC Economics Marathon

What time are you guys planning to sleep haha

what's sleep? approximately 12:30 pm

 

[teridax]

Re: 2015 HSC Economics Marathon

What time are you guys planning to sleep haha

2am tbh LOL