Section I - Multiple Choice (2 Viewers)

[Rafy]

Share your multiple choice answers here

 

[Randox]

Re: General Thoughts: Economics

Fuck mc was hard. Qn 11? Qn 7? Qn 20? Qn 18?

 

[Examine]

I legit think I got 12/20 for MC lol

 

[hayleyemma96]

Fuck mc was hard. Qn 11? Qn 7? Qn 20? Qn 18?

For q7 I put D because it means that consumers have less disposable income and therefore less demand for goods and services resulting in lower demand inflation.
Q11 I had A but I don't know why. Knew it wasn't C or D.
Q18 I had A but now I'm thinking its C because headline takes into account one-off spikes so there could be a spike in oil prices. Housing prices are generally increasing steadily.
Q20 I had B because a reduction in tariffs results in less revenue and allows importers (determined imports were present through free trade mentioned in question) to produce more. Domestic firms if they can't compete, reduce their output due to increased costs of selling at lower price to compete.


Hayley

 

[heytherewhatsup]

Wts 20?

 

[NFmusic1995]

fuck me dead.

 

[twinklegal19]

For q7 I put D because it means that consumers have less disposable income and therefore less demand for goods and services resulting in lower demand inflation.
Q11 I had A but I don't know why. Knew it wasn't C or D.
Q18 I had A but now I'm thinking its C because headline takes into account one-off spikes so there could be a spike in oil prices. Housing prices are generally increasing steadily.
Q20 I had B because a reduction in tariffs results in less revenue and allows importers (determined imports were present through free trade mentioned in question) to produce more. Domestic firms if they can't compete, reduce their output due to increased costs of selling at lower price to compete.


Hayley

I'm pretty sure 20 is D since $30 is the domestic equilibrium market price so there are no imports to be taxed at all

Also shouldn't 18 be D since an increase in the supply of oil prices leads to lower prices and hence lower headline inflation?

I stuffed up the superannuation MC though

 

[hayleyemma96]

I'm pretty sure 20 is D since $30 is the domestic equilibrium market price so there are no imports to be taxed at all

I stuffed up the superannuation MC though

Yeah but it mentions free trade so that would imply that imports exist. The tariff also implies that imports exists as the tariff is a tax in imports. Therefore, you wouldn't need a tariff if you didn't want to protect your domestic producers from foreign firms.


Hayley

 

[Randox]

In regards to qn7 multiple... If more money needs to be saved doesn't that mean employees demand high wages which are then passes on to consumers by increases in prices (cost push)

 

[rainlewis]

Here are what I think the answers are for the MC 2013 paper are:

1. A
2. B
3. C
4. C
5. A
6. C
7. A
8. A
9. C
10. D
11. A
12. B
13. C
14. B
15. B
16. D
17. B
18. A
19. D
20. D

 

[SGSII]

For Questions 7, the question says "theres an increase in the minimum rate of EMPLOYER superannuation contributions from 9%-12% of wages"
Doesnt that mean a rise in cost of production (rise in wages) leading to a increased cost inflation? hence A?

 

[andrew29223]

Went through MC with my teacher after exam, who is an HSC marker,
MC answers are (but not definitely)
1.A, 2.B, 3.C, 4.C, 5.A, 6.C, 7.A, 8.A, 9.C,10 D, 11.A, 12.B, 13.C, 14.B, 15.B, 16.D, 17.B, 18.D, 19.D, 20.D

20 is D because at the initial tariff price, the economy is in equilibrum and there are no imports, so tariff revenue rises when the tariff is lowered

 

[Lachyy]

For Questions 7, the question says "theres an increase in the minimum rate of EMPLOYER superannuation contributions from 9%-12% of wages"
Doesnt that mean a rise in cost of production (rise in wages) leading to a increased cost inflation? hence A?

Yeah, it just means employers now have to pay more on-costs to employees, thus creating cost-push inflation

 

[hayleyemma96]

In regards to qn7 multiple... If more money needs to be saved doesn't that mean employees demand high wages which are then passes on to consumers by increases in prices (cost push)

It doesn't mean more money needs to be saved. An increase in MPS resulted in a decrease in MPC which, according the Keynesian theory, resulted in lower demand therefore reducing demand inflation as people have less disposable income


Hayley

 

[Randox]

Here are what I think the answers are for the MC 2013 paper are:

1. A
2. B
3. B
4. C
5. A
6. C
7. A
8. A
9. C
10. D (However, a bit ambiguous as we are not given any information about the financial account, so could be B)
11. A
12. B
13. C
14. B
15. B
16. D
17. B
18. A
19. A
20. B

Got exact same except 12( which i wasn't thinking for) and 19.
Why have net exports increased?

 

[andrew29223]

Here are what I think the answers are for the MC 2013 paper are:

1. A
2. B
3. B
4. C
5. A
6. C
7. A
8. A
9. C
10. D (However, a bit ambiguous as we are not given any information about the financial account, so could be B)
11. A
12. B
13. C
14. B
15. B
16. D
17. B
18. A
19. A
20. B

Question 3 is definitely not b, has to be c
18 is either A or D but my teacher says D, oil much more volatile than housing prices so will be removed from headline
19 is D simple calculation

 

[Lachyy]

Went through MC with my teacher after exam, who is an HSC marker,
MC answers are (but not definitely)
1.A, 2.B, 3.C, 4.C, 5.A, 6.C, 7.A, 8.A, 9.C,10 D, 11.A, 12.B, 13.C, 14.B, 15.B, 16.D, 17.B, 18.D, 19.D, 20.D

20 is D because at the initial tariff price, the economy is in equilibrum and there are no imports, so tariff revenue rises when the tariff is lowered

For 15, wouldn't equilibrium income still increase, but by proportionately less than what it would have if MPC was higher

 

[andrew29223]

It doesn't mean more money needs to be saved. An increase in MPS resulted in a decrease in MPC which, according the Keynesian theory, resulted in lower demand therefore reducing demand inflation as people have less disposable income


Hayley

Economics multiple choice is immediate impact, you aren't wrong but the answer is increase cost push

 

[andrew29223]

For 15, wouldn't equilibrium income still increase, but by proportionately less than what it would have if MPC was higher

No, a lower mpc means a lower equilirium level of income. Increase in agg demand would still results in a multiplier effect and yes would be proportionally less, but the lower mpc means AD curve is less steep and intersects AS at a lower point so equilibrium level of income lower

 

[SGSII]

Question 3 is definitely not b, has to be c
18 is either A or D but my teacher says D, oil much more volatile than housing prices so will be removed from headline
19 is D simple calculation

I agree with you on 18, oil is more volatile than housing prices