Economics Marathon - 2010 (2 Viewers)

[random-1006]

bump.

give me a new question, kids.

explain the theory behind the gini coeffiecent ( ie how it is calculated, not just a formula!), what it measures and what a increase in the coeffiecent represents

 

[steph xx]

dude, did you see my HSC year? i'm in prelim, give me a break and scale down the difficulty.

 

[random-1006]

Explain the relationship between external stability and the distribution of income in Australia.

i dont think there is a strong ( if any) correlation between them

 

[random-1006]

dude, did you see my HSC year? i'm in prelim, give me a break and scale down the difficulty.

was wondering why it said 2011, i thought this is for hsc,

ummm a yr 11 question, whats a good one,

"Explain why a market (for goods and services) will always tend to equilibrium", sorry prob not the best, just made it up on the spot, but i think its a reasonable question

 

[random-1006]

can anyone explain the unemployment gap( deflationary gap) ?

im not 100% sure, but the deflationary gap is where supply is greater than demand with the keysian model ( aggregate demand) AD= C +I +G +X-M and supply is S= C+T +S ( i think, not 100% sure)

when graphed, the deflationary gap is the region where the AD line is below the S line ( im not sure if its relavent but the supply line makes 45 degree angle with positive x axis, ie, has gradient 1).

Quite simply, its just a case of the laws of demand and supply, when supply is greater than demand, the price decreases to reach equilibrium ( prices decreases --> deflationary), hence the name.

unemployment in this case doesnt not nessarily refer to unemployed people, it refers to just unemployed resources ( e.g. factories)

 

[Deathless]

"Explain why a market (for goods and services) will always tend to equilibrium", sorry prob not the best, just made it up on the spot, but i think its a reasonable question

I don't think it "always" does... For example a highly inelastic good or service may bend the rule "always".

Describe 3 recent labour market reforms.

 

[learninstudent]

explain the theory behind the gini coeffiecent ( ie how it is calculated, not just a formula!), what it measures and what a increase in the coeffiecent represents

Gini coefficient summarises the distribution of income across the population
gini coefficient = A / (A+ B) is is calculated as the ratio of the area between the lorenz cuurve and the lie of equality divided by the total area under the line of equality
The coefficient ranges from 0 - 1
0 means all incomes are qual and each individual receives same income
the smaller the gini coeffcicient the more even is the distribution of income

 

[Deathless]

Gini coefficient summarises the distribution of income across the population
gini coefficient = A / (A+ B) is is calculated as the ratio of the area between the lorenz cuurve and the lie of equality divided by the total area under the line of equality
The coefficient ranges from 0 - 1
0 means all incomes are qual and each individual receives same income
the smaller the gini coeffcicient the more even is the distribution of income

Just to add to what learninstudent has said:

A is the area between the line of equality and the Lorenz Curve
B is the area between the Lorenz Curve and the x-y axis

Also:
0 = Means that all "household" incomes are equal.
1 = One household possesses the total "household" income.

The emphasis on "household" is because the Gini co-efficient doesn't measure "investment" income. This is also one fault of the co-efficient.