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October 23, 2019, 04:15:42 am

Author Topic: Economics Questions Thread  (Read 84448 times)  Share 

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Jmac02

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Re: Economics Questions Thread
« Reply #765 on: September 14, 2019, 07:56:29 am »
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How do welfare reforms face a challenge because of a possible trade-off between the promotion of efficiency and the protection of equity in income distribution? Thanks. :)

NomotivationF

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Re: Economics Questions Thread
« Reply #766 on: September 15, 2019, 03:17:50 pm »
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How do welfare reforms face a challenge because of a possible trade-off between the promotion of efficiency and the protection of equity in income distribution? Thanks. :)

Hmm I'm not sure if this question is from a practice exam or sac, but the concept of equity isn't part of the economics study design. In terms of answering the question (while disregarding the equity part) I'd say the government can divert their resources towards research and development/training and education instead of welfare, or something around that nature.
My journey through VCE

2018 - Accounting [42], Further Maths [44]
2019 (Aims)- English [~37], Economics [~40], Psychology [~45], Maths methods [25+]
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Jmac02

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Re: Economics Questions Thread
« Reply #767 on: September 15, 2019, 05:06:22 pm »
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Hmm I'm not sure if this question is from a practice exam or sac, but the concept of equity isn't part of the economics study design. In terms of answering the question (while disregarding the equity part) I'd say the government can divert their resources towards research and development/training and education instead of welfare, or something around that nature.

That's what I was thinking, will have to check up with my teacher about it. Thanks for the help, anyway.  :)

Jmac02

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Re: Economics Questions Thread
« Reply #768 on: September 15, 2019, 05:09:43 pm »
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Also, can anyone please answer this. 'Explain how the provision of subsidies as a form of protection has been discredited. In your answer, refer to both the short and long term.

Thanks again.  :)

NomotivationF

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Re: Economics Questions Thread
« Reply #769 on: September 15, 2019, 09:25:19 pm »
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Also, can anyone please answer this. 'Explain how the provision of subsidies as a form of protection has been discredited. In your answer, refer to both the short and long term.

Thanks again.  :)

This question is kinda tied in with Unit 3 aos 3. Overall, protection of the economy is usually considered bad in the long run. This is because
even though protection can have short-term benefits for some groups,  it tends to result in negative outcomes for the economy in the longer term.

-This is because higher levels of protection reduce competition for local import competing producers and result in less pressure to minimise costs and prices
-There is also less incentive to improve efficiency and performance and tariffs also work to act as a tax on other Australian industries
-Over time, foreign producers tend to become relatively more efficient as they are exposed to greater competitive pressures; they can then reduce prices and gain a foothold in the Australian market, and Australian firms will then ask for an increase in tariffs to ‘protect Australian jobs’
-This process becomes destructive as inefficiency of local producers becomes entrenched, raising the cost structure of the Australian economy and increasing the likelihood that foreign governments will retaliate and protect their local producers from those Australian exporters that have a comparative advantage (eg mining).

However, subsidies are still offered in some forms such as the export development grants as I mentioned a few replies ago.

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Jmac02

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Re: Economics Questions Thread
« Reply #770 on: September 15, 2019, 10:01:36 pm »
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Perfect, thanks again.  ;D

Hetvi

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Re: Economics Questions Thread
« Reply #771 on: September 16, 2019, 07:27:15 pm »
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Hey guys,
Could you update me with some latest statistics I can’t seem to find them. Also does anyone by chance have some economic resources. That would be nice thank you so much :)

tcvc

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Re: Economics Questions Thread
« Reply #772 on: October 09, 2019, 08:52:58 pm »
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Hi,

I've been doing some practise exams which have supposedly been modified from the old study design and I keep finding questions which talk about achieving the goal of "external stability". It's not to complicated, but I haven't done anything on it all year. Does anyone know if it is part of the study design or not?
Any help would be awesome, cheersf

NomotivationF

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Re: Economics Questions Thread
« Reply #773 on: October 10, 2019, 08:12:10 pm »
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Hi,

I've been doing some practise exams which have supposedly been modified from the old study design and I keep finding questions which talk about achieving the goal of "external stability". It's not to complicated, but I haven't done anything on it all year. Does anyone know if it is part of the study design or not?
Any help would be awesome, cheersf

External stability is no longer part of the study design. However, the term basically means an improvement in the CAD.
My journey through VCE

2018 - Accounting [42], Further Maths [44]
2019 (Aims)- English [~37], Economics [~40], Psychology [~45], Maths methods [25+]
2020-2024 (Hopefully) - Bachelor of Commerce/Science @Monash

Jmac02

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Re: Economics Questions Thread
« Reply #774 on: October 11, 2019, 07:05:05 pm »
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Hey all,
Can anyone please help me with this?
"Provide one possible explanation for the full employment rate of unemployment falling below 5%?"
My guess is it has to do with increasing the productivity and efficiency of the labour force.

Thanks  :)

NomotivationF

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Re: Economics Questions Thread
« Reply #775 on: October 11, 2019, 09:16:36 pm »
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Hey all,
Can anyone please help me with this?
"Provide one possible explanation for the full employment rate of unemployment falling below 5%?"
My guess is it has to do with increasing the productivity and efficiency of the labour force.

Thanks  :)

Ahh you can use a looooot of stuff here to be honest, but it really depends on how many marks the question is worth, as it may hint to whether it wants you to talk about AD factors that have led to the unemployment rate falling below 5%, or the casualisation of the workforce.

Here is what I would say if it was asking for both.

In recent economic times, the RBA has lowered the cash rate from 1.50% to 0.75%, with the most recent rate cut being in October 2019. This cash rate cut aims to lower the interest rate and increase aggregate demand through one of the five transmission mechanisms. In terms of the cash flow transmission mechanism, lowering the cash rate would mean consumers/businesses with existing variable loans would experience an increase in their discretionary income, due to having to pay lower rates of interest on their loans. If businesses or consumers choose to spend this newfound income, there may be an increase in private consumption expenditure (c) and/or investment expenditure (I), and thus an increase in AD. As firms increase their production to meet the increasing consumer demand, they will create a greater derived demand for labour, which may have contributed to the increase in employment and the lowering of the unemployment rate. However, although the unemployment rate has been steadily decreasing, the underemployment (members of the labour force that are currently employed but would like to work more hours) rate has been increasing. This may be due to the increasing casualisation of the workforce which involves an increasing amount of part-time and causal workers being hired to full time workers. Although this does still result in a reduction in the unemployment rate, the underemployment rate has been increasing.
My journey through VCE

2018 - Accounting [42], Further Maths [44]
2019 (Aims)- English [~37], Economics [~40], Psychology [~45], Maths methods [25+]
2020-2024 (Hopefully) - Bachelor of Commerce/Science @Monash

Loren_T

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Re: Economics Questions Thread
« Reply #776 on: October 11, 2019, 09:18:08 pm »
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Hey all,
Can anyone please help me with this?
"Provide one possible explanation for the full employment rate of unemployment falling below 5%?"
My guess is it has to do with increasing the productivity and efficiency of the labour force.

Thanks  :)
hi- im just having a go at answering a question for once here ;D
the goal of full employment is to have an unemployment rate of 5% of the labour force...
 I guess if the rate of individuals who are unemployed becomes lower than 5%, that indicates that the demand for labour has increased. This could be caused by an aggregate demand side policy (or budgetary policy), such as high government spending on training and education. This policy would boost the productivity of the labour force, thus expanding the production possibility frontier. In response, firms will make job vacancies which can be more easily entered into by individuals who are able and willing to work, as high spending on training and education enhances the skill set of the labour force.

Jmac02

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Re: Economics Questions Thread
« Reply #777 on: October 11, 2019, 09:21:20 pm »
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Thanks very much, everyone, this helped a lot!  :D

Loren_T

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Re: Economics Questions Thread
« Reply #778 on: October 11, 2019, 09:41:24 pm »
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No probs (hope I made sense :o)
you could choose any favourable AD side factor from the budgetary or monetary policy and explain how it would lead to increased employment and participation rate, therefore stimulating a boom in the economy, where unemployment is low and inflation and GDP rises.