2016 Economics Exam Discussion

[jeff95]

Hey guys, not to be that annoying student but I'm really really worried and stressed out I didn't get the score I wanted (mid A+ish) on the exam

Can someone please tell me what they think my mark was out of (x) for these questions!!

1. Q)The 6 marker of market operations
    A) I know I screwed up parts of this question. All I did was essentially talk about relative prices in the iron ore market commodity market. Because its operations I thought i wanted direct reference to supply/demand e.t.c. So I said for example increased demand for iron ore from China to build their ships in periods of higher growth e.t.c would cause a shortage of cars at the present per unit price level. As such, prices will rise as consumers ration demand and suppliers will overtime supply more to the market to increased profitability (Essentially the price mechanism). Thereby arriving at a new equilibrium.
Then I made the mistake like many apparently and misread the question thinking it said to what extent do markets operate freely in Australia. I just discussed market capitalism e.t.c (I didn't discuss specific gov intervention in iron ore market - e.g. carbon tax).
Can you please tell me what I'm looking at for this question I really want to know its killing me

2. Q) the 2 marker taxation one with the statement discussing the reasons to have a tax reform.
    A) I essentially just talked about how Australia still operates regressive taxes (e.g. tobacco excise) and then discussed the negative implications this has on equity e.t.c with proportionate incomes, gini coefficient e.t.c (I'm worried because Australia's taxation system is generally progressive, however is this still okay to talk about?)

3. I talked about youth jobs program twice. one time through one of the budget questions and another time in the last one asking how a budget can increase participation rates. However in one question I emphasised the wage subsidies of the policy, and for the participation rate one I emphasised the employability training and internship part saying it will help previously unskilled people enter the labour force and become attractive for employment and actively participate in the labour force e.t.c. Is this okay?

I'm positive I got 15/15 on the MC. However I really wanted around a 45. Is it still possible with this information I just gave you? (I know I also lost 3 marks on the 6 marker tax question)

THANK YOU VERY MUCH!     

[cct98]

Hey guys this is another one of those annoying posts but i was really relying on a 40 (or just under) in economics to get the atar i need for my course, but I think I fucked over the exam.
For the 6 marker about markets, i left till last and mental blanked, and instead wrote about the market for coffee in a local area, the economic factor being changing consumer preferences influencing resource allocation and supply in certain areas, and how it was monopolistic competition which slightly limits its ability to operate freely in Australia. Is that completely off track? I think I got maybe 13/15 on MC, and probably lost a few other marks here and there.
And, for the 6 marker about income tax policies and company tax policies influencing AS, i could only think of how income tax policies influeced AD, which then can expand/contract AS, so i talked about that....
Rest was ok I think, and I've averaged about 90% on sacs this year in a pretty good cohort
Do I still have a chance at a 38-40 or am i a goner

[bravado]

With the market operations 6 marker, I answered the question as if it was asking "to what extent is the market a perfectly competitive".

For the second half of the question, I said that the market is free to a limited extent and discussed high barriers to entry (high start up costs because manufacturing equipment), product differentiation (branding, perceived quality), and low number of firms that dominate the market. Then I made a short mention about how consumer sovereignty still exists and prices can still be low because of price wars. My last sentence was like "thus, the car industry is towards an oligopoly on the market power spectrum".

I mean, could this still technically be correct given that if market power exists, the market isn't 'free'. Barriers to entry can't exist in a free market, so would I be able to get at least some marks for the second half of the question??

[100.00]

I would love to answer all of your questions but I'm in the same boat for that 6 marker. (left it till last and completely misread it) From my understanding you needed to discuss one factor, discuss how the market operates freely (in multiple ways).

For the PIT guy, I also made the same mistake aswell funnily enough, talked about how it influenced demand and later influenced supply. You needed to talk about how for example, higher PIT would reduce incentives to work and thereby reduce quantity of workers and decreased aggregate supply by basic supply-side logic. (less labour to work with)

I'm hoping that the A+ cutoff is lower this year (sounds like it will be).

cct98 , judging by the information you have provided I would say you have lost somewhere between 9-14 marks. This will land you a 38 raw at least so I wouldn't worry. I know how easy it is to get stressed especially when you work on a subject like economics all year and misread a question (exhibit A - me) and drop a few marks. I've come to the realisation that stressing about it is useless. The more we think about it the more we look for problems, and suddenly after I think I only lost 5 marks, i come to believe i've lost ten and so on. As hard as it is, try to let go.

Hope I helped.

[abcdqdxD]

First two are correct (oil/housing/supermarket as welk maybe), however i highly disagree with you for a question 3, because its only a six marker, doing how a change means you would need to go through both sides (if they cut the tax for higher income or lower it for example) for both and that would be an 8 marker question. Also, there has been two changes in this year for both personal income and company tax which were very specific and it would only be going in one direction which gets rid of the assumption that would need to go through both sides if you assumed it your way and it explains how

So given only one direction
There has been change in the taxation system in 2016, personal income tax, company tax

Changes to personal income tax,etc (1)
Incentivise ppl to work, more access to resource, willing able to produce (1)
Increase in agrgeate supply and productive capacity, increase in growth in the long term(1)

Changes to the company tax,etc (1)
Reduced tax rate means businesses will invest more better capital new equipment increase productivity, willing able to produce (1)
Increase as,pc increase eco growth in the long term

100 percent sure this is the correct way to do it

Yep you would only do one direction for 6 marks. Given the way Q is worded, we can choose any direction (but obviously would be ideal to follow current policy).

[100.00]

Alright good to know because i was going to do what you did but thought it wouldnt be appropriate for the mark allocation, however reading throught the wording of the question again it doesnt specifically say to use a budgetary policy like it usually would which means i could be wrong. Id think itd be extremely unfair to take marks off for that though consdering so many ways the question could have been interpreted for students, hopefully the assessors wont take six marks off from me because 'change' was far too vague and it doesnt explicity say yes/no to show show said 'change' in a general sense or a specific sense.

You are answering your own question lol. The "change" nature only wanted one change (Decrease/increase) - It was your luxury to choose.
When you say "reading through the wording of the question again", do you have an exam copy by any chance?

[100.00]

Hey ABC, Could you still get 4/6 if your company tax part was perfect and you defined PIT and referenced a current example (Even if you discussed PIT from the demand side?)

Thanks

[100.00]

No i dont, i was just reading what abcdq posted which made me think i was right in choosing one change but wrong in that i used a specific budgetary policy to answer it when the question didnt state it. But at the time when it said 'how a change' in the exam i immediately just went to what has changed the progressive (personal income tax) and compmay tax recently rather than in a general sense. Could anyone with past experience clarify if i would lose six marks there because now its bothering me that a general sense could have been correct too, and probably the better answer.

What do you mean you used a current budgetary policy? The question only wanted a change to the taxation system (e.g. a lift in the marginal income tax rate for the 2nd highest tax bracket from 80,000-87,000). If you are saying you wrote about WHAT changed the PIT system (i.e the current below trend growth perhaps signalling the need to stimulate the economy and create employment) - and referenced it with a specific budgetary policy. It unfortunately didn't want this, this is a "Cause and effect" error I made aswell by discussing the PIT bit from the demand side first.

[abcdqdxD]

Hey ABC, Could you still get 4/6 if your company tax part was perfect and you defined PIT and referenced a current example (Even if you discussed PIT from the demand side?)

Thanks

Yep should be able to

[abcdqdxD]

No i just did that, i didnt explain what prompted the pit system, i explained what it actually is which is a currecnt budgetary policy. However, when i think through it again i really do feel like how abcdq explained it was correct in that you needed to do a general sense of a change, not choosing a specific distrectionary one. This is because vcaa explicity states choose one budgetary policy to indicate this, so when it doesnt they are referring to just generally if the progresive tax were to be in more/less favour to higher income earners. So im assuming gonna be losing 3 or even six marks for misinterpretation which is honestly just annoying as

Even if you used a budgetary policy, as long as it relates to income tax and corporate tax I dont think you would lose any marks

[100.00]

Hello,
Just wandering if using regressive taxes and referencing tobacco tax was okay for the "Tax system needs a reform" 2 mark question - I.e saying that it decreased equity e.t.c.

[100.00]

If anyone has a copy of the paper or solutions can you please post it here!!!!!

Dying, literally.

Thanks!!

[corza000]

I've got a copy. I'll see if I can put it up tomorrow.

[100.00]

I've got a copy. I'll see if I can put it up tomorrow.

Thank you so much! Real MVP.

[corza000]

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