Economics Marathon 2014 anyone??? (3 Viewers)

[Maxwell]

he means he get band 4 for eco.

ANYWAY, is someone willing to give a shot at the original question?

Here it is: A highway currently passes through a country town. The government is proposing to build a bypass that diverts highway traffic away from the town. Discuss the costs and benefits of this proposal. (four marks)

i) Costs: With less motor-vehicle traffic comes less demand for the town's products. Consequently, local business cessation may result, thereby increasing the local level of unemployment. This creates a greater reliance on transfer payments, which will in turn put downwards pressure on the budget. Another cost would be the negative externalities associated with the construction of the actual highway itself, as generally production results in the emission of CO2.
ii) Benefits: Assuming the bypass shortens the trip-time, this will facilitate the movement of goods in the economy, thus increasing aggregate supply in the long-run. This will increase real-incomes and lead to a rise in living standards, as these factors are correlated with economic growth. Another benefit would be the multiplier effect of the actual production of the bypass, which, depending on the marginal propensity to save of the economy, will generally result in an increase in national income. As a result, living standards and real-income levels increase.


Idk if i wrote enough for 4 marks, but meh.

 

[Maxwell]

I have a question:


Define what marginal social costs, marginal private costs and marginal private benefits are. (3)

 

[avi888]

A highway currently passes through a country town. The government is proposing to build a bypass that diverts highway traffic away from the town. Discuss the costs and benefits of this proposal.

The creation of a bypass reflects an increase in infrastructure expenditure by the government, as a result aggregate demand will increase, as per AD=C+I+G+(X-M) therefore facilitating a multiplied increase in economic growth, which will improve the quality of life for the residents in the town and the economy, also an increase in infrastructure expenditure will result in an increase in employment in the construction/planning sector of the economy, reducing unemployment and further improving the quality of life. Also diverting the negative externalities of pollution away form the town reflects an increase in quality of life for its residents. However, this increase in aggregate demand may reflect an increase in the budget deficit, meaning governments may finance the deficit through the sale of treasury bonds in the private sector resulting in the "crowding out effect" or the worsening of the CAD by borrowing from overseas. Also diverting consumers away from the town will result in a decrease in demand for the towns goods and services , meaning an increase in unemployment and profit for the towns residents, thereby resulting in a decrease in quality of life. Further, in the short term the construction of the bypass will represent a displacement of people from their homes and the reduction of the beauty of the environment resulting in a decrease is social cohesion.


I got a bit carried away, writing too much , but u get the idea

 

[avi888]

Next question?
Outline two initiatives of fiscal policy in 2014?

 

[mreditor16]

I'll get around to feedback for Maxwell and avi888 sometime soon. In the meantime, keep going with the Qs.

 

[mreditor16]

and also Maxwell, you posted yours first, so can someone answer his question:

I have a question:


Define what marginal social costs, marginal private costs and marginal private benefits are. (3)

then, we'll get to avi's

 

[avi888]

Marginal private costs: The cost to a firm of producing a good or service.
Marginal private benefit?: The benefit a consumer or household experiences by actually consuming a good or service
Marginal social cost: The total cost to society from producing a good or service.

very brief but you get the idea

 

[Intrinsic]

Marginal private costs: The cost to a firm of producing a good or service.
Marginal private benefit?: The benefit a consumer or household experiences by actually consuming a good or service
Marginal social cost: The total cost to society from producing a good or service.

very brief but you get the idea

Good, but don't forget that profitability is also a private benefit and, to include the term 'negative externalities' in social cost

 

[avi888]

Good, but don't forget that profitability is also a private benefit and, to include the term 'negative externalities' in social cost

Hahahah yeah was trying to be as brief as possible thanks

 

[avi888]

Outline a reason for the greater degree of inequality in the distribution of wealth that the distribution of income?

 

[Futuremedstudent]

Outline the features of globalisation, and analyse the impact of globalisation on the standard of
living in the global economy

 

[avi888]

Outline the features of globalisation, and analyse the impact of globalisation on the standard of
living in the global economy

How much do you want, could write a 1.2 k essay on this?

 

[Futuremedstudent]

How much do you want, could write a 1.2 k essay on this?

it's q27, 20 marks
tbh if that works with you, go for it!

 

[Futuremedstudent]

q10, 2005 hsc:
Which of the following is the likely effect on Australia of a recession in the economies
of all Australia’s major trading partners?
(A) A reduction in Australia’s imports and a decrease in the current account deficit
(B) A reduction in Australia’s exports and an increase in the current account deficit
(C) A reduction in foreign investment into Australia and a decrease in the financial
account surplus
(D) An increase in foreign investment into Australia and a decrease in the financial
account surplus

 

[Futuremedstudent]

Outline a reason for the greater degree of inequality in the distribution of wealth that the distribution of income?

let me have a guess: stereotyping or racial discrimination.

 

[trungduong12]

q10, 2005 hsc:
Which of the following is the likely effect on Australia of a recession in the economies
of all Australia’s major trading partners?
(A) A reduction in Australia’s imports and a decrease in the current account deficit
(B) A reduction in Australia’s exports and an increase in the current account deficit
(C) A reduction in foreign investment into Australia and a decrease in the financial
account surplus
(D) An increase in foreign investment into Australia and a decrease in the financial
account surplus

B??


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[Futuremedstudent]

B??


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correct

 

[avi888]

let me have a guess: stereotyping or racial discrimination.

LOOL, well maybe if the marker is looking for a LOL, but one reason is that there is largely no policy response towards reducing the degree of inequality in wealth, but there is a larger response for income, (e.g. taxation, transfer payments etc...). One of a few reasons anyway

 

[Futuremedstudent]

Define the term Trade Weighted Index

 

[trungduong12]

Outline the features of globalisation, and analyse the impact of globalisation on the standard of
living in the global economy

I hate questions (essay questions ) related to globalisation ((((

I hate the case study questions !!!
I hope its not gonna be in the exam (or at least not in the essay section) this year !!!!





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