Section I - Multiple Choice (3 Viewers)

[OzKo]

Re: Scan of the Exam for Multiple Choice (as requested)

no its D, i guarantee

Yes, I'm inclined to agree with this.

 

[eXanimo]

THE FRIGGIN LINE FOR Q18 wasn't even in the $12 equilibrium thingy!!! it was realistically $1 difference so I leave that blank!!!

You LEFT IT BLANK??? Stupidest thing i've heard.

 

[eXanimo]

I chose D for question 9, but my teacher said the answer was B because a lowering of the cash rate meant more disposable income and since Y=C+S it meant that there was a rise in both consumption and savings. I chose B because the interest rate is lower meaning there is less incentive to save. Thoughts?

the question was "all other things being equal". Spending AND Saving cannot both rise at the same time unless income increases. The answer was D, as MPS would fall

 

[Kieran95]

Q17? looking at it, it seems that it would be C, but is it the other way around?

 

[Blocy]

nope, its C.

 

[eXanimo]

I answered $2 for Q18, but i got an interesting response from a teacher, who said such:

The answer is $4.

Why?
It is all to do with the law of supply (Y11 Econ). Before the subsidy, At $10 there were all suppliers only willing and able to supply 12 towels to the market.

With the subsidy and a sale price of $10 all suppliers are now willing and able to supply 20 towels to the market.

I got a bit tricky after that - I looked at the total revenue for producers. That is price x Quanity for all suppliers.

Before subsidy it was 10x12 = $120
After subsidy it was 10x 20 =$200

So the difference in total producer revenue at $10 with the subsidy is $80. (the subsidy gives an extra $80 in revenue to suppliers)

Now to work out the $ per towel the subsidy - you have to divide it by the number of towels made , 20 made.

So $80/20 = $4

___________________________

I still take the opinion that the answer is $2 due to the vertical difference in supply's, but that would be the argument for $4

 

[Washy_182]

I answered $2 for Q18, but i got an interesting response from a teacher, who said such:

The answer is $4.

Why?
It is all to do with the law of supply (Y11 Econ). Before the subsidy, At $10 there were all suppliers only willing and able to supply 12 towels to the market.

With the subsidy and a sale price of $10 all suppliers are now willing and able to supply 20 towels to the market.

I got a bit tricky after that - I looked at the total revenue for producers. That is price x Quanity for all suppliers.

Before subsidy it was 10x12 = $120
After subsidy it was 10x 20 =$200

So the difference in total producer revenue at $10 with the subsidy is $80. (the subsidy gives an extra $80 in revenue to suppliers)

Now to work out the $ per towel the subsidy - you have to divide it by the number of towels made , 20 made.

So $80/20 = $4

___________________________

I still take the opinion that the answer is $2 due to the vertical difference in supply's, but that would be the argument for $4

That's how I worked it out... Hope the answer is $4

 

[KierenTran]

I can't believe i rushed question 20 and got it wrong! So burning! Apart from that i think i got 19/20... but i wrote $2 for subsidy but still not sure if that's correct.

 

[darkdog307]

Answers are as follows (99% sure)
1. B
2. A
3. B
4. A
5. A
6. C
7. B
8. D
9. D
10. C
11. C
12. D
13. D
14. B
15. A
16. A
17. C
18. A
19. C
20. D

Yeah i got those answers as well!

 

[inJust]

I answered $2 for Q18, but i got an interesting response from a teacher, who said such:

The answer is $4.

Why?
It is all to do with the law of supply (Y11 Econ). Before the subsidy, At $10 there were all suppliers only willing and able to supply 12 towels to the market.

With the subsidy and a sale price of $10 all suppliers are now willing and able to supply 20 towels to the market.

I got a bit tricky after that - I looked at the total revenue for producers. That is price x Quanity for all suppliers.

Before subsidy it was 10x12 = $120
After subsidy it was 10x 20 =$200

So the difference in total producer revenue at $10 with the subsidy is $80. (the subsidy gives an extra $80 in revenue to suppliers)

Now to work out the $ per towel the subsidy - you have to divide it by the number of towels made , 20 made.

So $80/20 = $4

___________________________

I still take the opinion that the answer is $2 due to the vertical difference in supply's, but that would be the argument for $4

Someone verify... I got 2$

 

[RishBonjour]

Someone verify... I got 2$

I'm pretty sure a MC doesn't require that much working out. It says somewhere in Riley book its the vertical distance, which was $2

but if its wrong. fkkkkkk.

 

[christopher8827]

Someone verify... I got 2$

They correct answer is $2. They size of the subsidy is the vertical distance between the two supply curves.

 

[eXanimo]

Someone verify... I got 2$

I suspect that this question will be discounted. I've heard very convincing arguments from both sides, and even my teachers are arguing back and forth on emails about it.

Either way, the working I posted before seems too complicated for a multiple-choice, so i suspect they were over-thinking it. I would say $2 is the safe bet.

 

[eXanimo]

Christopher, Is there any reason you say that, despite the working posted above?

 

[asadass]

It would be nice to see both answers allowed, like they did in the 2010 HSC.

 

[ct12345]

9 cood be both B and D, i think they will allow both

 

[ct12345]

the rest are fine, subsidies is definitely $2

 

[christopher8827]

Christopher, Is there any reason you say that, despite the working posted above?

The supply curve was shifted to the right because a subsidy was paid to the domestic producers. This allows them to sell towels at lower price at $8 per towel. Therefore, a subsidy of $2 must be paid if the equilibrium price is $10. The question is asking "PER TOWEL" - you're unlikely to be asked to do much more.

Also, this means the size of the subsidy is the vertical distance as they are paid $2 to lower their price.

Source: https://www.google.com.au/search?q=...N&tab=wi&authuser=0&ei=PLh_ULfHKcGsiAfFuYDYDA

 

[Jashua_Long]

The guys got the easiest multiple choice. So many easy calculation questions and easy logic questions.

 

[irenefu]

Did anyone else put put A for question 3?

The question was - Which of the following is most likely to occur as a country becomes more economically developed?
a.education levels increase
b.labour productivity increases
c.reliance on foreign aids increases
d.agricultural production as a share of GDP increases

I see most people put b, but I interpreted the question as what happens when the government improves the amount of economic development in the economy which is defined as indicators of 'health, education and environmental quality' so that's why I chose A over B.

Did anyone else do this?=S Or did I overanalyse?