Protection Questions (1 Viewer)

[matchalolz]

I don't get these multiple choice questions:

Which of the following is a short-term economic effect of a reduction in subsidy protection?
a. decreased government revenue
b. increased political protest
c. increased structural UNemployment
d. increased domestic production in the subsidised industry

i thought it was c but the answer is a. can someone explain?

also this one:
Which of the following is most likely to cause an increase in domestic price pressure?
a. reduced provision of government subsidies for Australian car manufacturers
b. increased quota for American seafood imports
c. progressive reduction in domestic tariff levels
d. higher import duties on foreign textiles imports

I got a, and the answer is d.

I would ask my teacher but can't rn, would appreciate any help

 

[BLIT2014]

1.
Subsidy:a sum of money granted by the state or a public body to help an industry or business keep the price of a commodity or service low.

If a government, reduced a subsidy, it would cost more for domestic producers to produce the product.
It wouldn't be a c, as the domestic industry wouldn't be less likely to employ people in the industry.

 

[matchalolz]

1.
Subsidy:a sum of money granted by the state or a public body to help an industry or business keep the price of a commodity or service low.

If a government, reduced a subsidy, it would cost more for domestic producers to produce the product.
It wouldn't be a c, as the domestic industry wouldn't be less likely to employ people in the industry.

ohhhhh i see thanks

do u/anyone know how to do the second one?

 

[swagmeister]

for the first one - a reduction in a subsidy is a decrease in protection, therefore in the short term the answer must be c - increased structural employment. Can't be A because it represents government spending not government revenue. Funny enough I recall doing this exact question, and I think that maybe the answer was a? This isn't a past HSC question is it, Dixon workbook?

for the second one - it's a bit more complex, but your teacher is correct. reduced subsidies is a reduction in protection, thus in the long term it will foster competition (however in the short term it could push the price up leading to domestic price pressures, but because it is really taxation income redistribution that is not the case). Like the other reductions in protection, these are likely to cause a decrease in domestic price pressure (we haven't done Topic 3 yet but going off the basic it will decreased imported inflation (less so for the car one though) and also potentially decreased cost inflation as things are cheaper for firms). So d, as an increase in protection (which means that consumers are disadvantaged and going to pay more) is therefore the best answer. Answer A could do so possibly in the very short term but it say's most likely and D is the definite one.

Hope this helps, as me if anything doesn't make sense

 

[matchalolz]

for the first one - a reduction in a subsidy is a decrease in protection, therefore in the short term the answer must be c - increased structural employment. Can't be A because it represents government spending not government revenue. Funny enough I recall doing this exact question, and I think that maybe the answer was a? This isn't a past HSC question is it, Dixon workbook?

for the second one - it's a bit more complex, but your teacher is correct. reduced subsidies is a reduction in protection, thus in the long term it will foster competition (however in the short term it could push the price up leading to domestic price pressures, but because it is really taxation income redistribution that is not the case). Like the other reductions in protection, these are likely to cause a decrease in domestic price pressure (we haven't done Topic 3 yet but going off the basic it will decreased imported inflation (less so for the car one though) and also potentially decreased cost inflation as things are cheaper for firms). So d, as an increase in protection (which means that consumers are disadvantaged and going to pay more) is therefore the best answer. Answer A could do so possibly in the very short term but it say's most likely and D is the definite one.

Hope this helps, as me if anything doesn't make sense

so you're basically saying
For 1. That my answer is actually correct? The reason why i thought A wasn't correct was because I didn't think "government revenues" are an economic effect but idk, answers say otherwise and the person above as well - and yup it's from the workbook
For 2. That A is correct but D is more correct

 

[BLIT2014]

c. increased structural employment

would/could be right if it was structural unemployment.

 

[BLIT2014]

so you're basically saying
For 1. That my answer is actually correct? The reason why i thought A wasn't correct was because I didn't think "government revenues" are an economic effect but idk, answers say otherwise and the person above as well - and yup it's from the workbook
For 2. That A is correct but D is more correct

I agree with the reasoning behind the 2nd multiple choice though..I think swagmeister misread/misinterpreted part of your post.

 

[matchalolz]

c. increased structural employment

would/could be right if it was structural unemployment.

crap i mis-typed the question

 

[matchalolz]

tbh, I found that the sample answers for the dixon workbook are really dodgy; from what I've seen



and this what I also hate about MC lol, two answers appear correct - lyk c'mon BOSTES

THIS. OMG. I'm going to read through all the options in all the questions of my half yearly i swear

 

[BLIT2014]

crap i mis-typed the question

Ah that makes more sense why you choose that option..

 

[swagmeister]

I agree with the reasoning behind the 2nd multiple choice though..I think swagmeister misread/misinterpreted part of your post.

ya sorry guys, had done the question before in the workbook so was in the instinct of answering it based on structural employment haha

btw make sure you are using the answer's which are for the correct version of the textbook, our class had the same problem...

 

[hawkrider]

THIS. OMG. I'm going to read through all the options in all the questions of my half yearly i swear

for MC?

 

[swagmeister]

so you're basically saying
For 1. That my answer is actually correct? The reason why i thought A wasn't correct was because I didn't think "government revenues" are an economic effect but idk, answers say otherwise and the person above as well - and yup it's from the workbook
For 2. That A is correct but D is more correct

tbh when I did it I thought it would be d) cause it was more obvious and it does it in the short and long term plus it is kind of a first-degree cause, compared with a) which is kind of more potentially a second-degree cause. Check out mreditor16's guide, helped me heaps with some of the really annoying multiple choice question's like these.

 

[matchalolz]

ya sorry guys, had done the question before in the workbook so was in the instinct of answering it based on structural employment haha

btw make sure you are using the answer's which are for the correct version of the textbook, our class had the same problem...

tbh i just assumed I was wrong because I hadn't started studying for eco until like an hour ago and i'm doing these questions to find out what i don't know
where/how do u get the correct answers? (i'm going to be trolled by this book so hard...)

 

[matchalolz]

for MC?

yup. They could potentially be easy marks compared to the long responses

 

[BLIT2014]

tbh i just assumed I was wrong because I hadn't started studying for eco until like an hour ago and i'm doing these questions to find out what i don't know
where/how do u get the correct answers? (i'm going to be trolled by this book so hard...)

I'm pretty sure that our teacher told us to cross it out and write ''tariff' instead of subsidy for this question.


Which of the following is a short-term economic effect of a reduction in subsidy protection?
a. decreased government revenue
b. increased political protest
c. increased structural UNemployment
d. increased domestic production in the subsidised industry

 

[swagmeister]

http://www.pearsonplaces.com.au/Pla.../More_Subjects_Student_Lounge/LE_AGE_SPL.aspx

seventh edition right? be carefull cause they changed some of the multiple choice question's around so the order is not messed up. If you are not using the seventh edition let me know cause I've seen the answers for the 6th edition online I think and I should be able to dig them up

 

[matchalolz]

http://www.pearsonplaces.com.au/Pla.../More_Subjects_Student_Lounge/LE_AGE_SPL.aspx

seventh edition right? be carefull cause they changed some of the multiple choice question's around so the order is not messed up. If you are not using the seventh edition let me know cause I've seen the answers for the 6th edition online I think and I should be able to dig them up

yup, I'm using the seventh edition but the answers in the link above aren't right coz that's what I've been using lolol

 

[swagmeister]

? I did every single multiple choice question from all the subtopics in topic 2 and most in topic 1 about a week ago before my half yearly and got most of them right...

 

[matchalolz]

? I did every single multiple choice question from all the subtopics in topic 2 and most in topic 1 about a week ago before my half yearly and got most of them right...

it's probably like only one/two questions that have dodgy answers

thanks for all your help people!

/close thread.