Economics Half Yearly

8/17/2019 Economics Half Yearly

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Caringbah

High School

ECONOMICS

General Instructions

Reading time – 5 minutes

• Working time – 2 hours

• Board approved calculators may be

used

• Write using blue or black pen

• Write using student name in spaces

provided

Section 1 Total marks 20

• Attempt questions – 20

• Allo! about "0 minutes #or this

section

Section II Total marks $0

• Attempt questions 2 – 2$

• Allo! about hour #or this section

• Ans!er in the spaces provided

on the question paper

Section III Total marks 20

•

Attempt question 25 or question 2%• Allo! about "0 minutes #or this

section

• Ans!er in a separate booklet or

on a ne! sheet o# paper

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2008SEMESTER ONE EXAMINATION

Year 12


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CARINGBAH HIGH SCHOOL

2008

SEMESTER ONE EXAMINATION

ECONOMICS

ANSER SHEET ! SECTION 1 ! M"LTI#LE CHOICE$

ST"%ENT NAME&

)learly mark your intended ans!er()hoose either A*B* ) or +(

1 A B ) +

2 A B ) +

' A B ) +

( A B ) +

) A B ) +* A B ) +

+ A B ) +

8 A B ) +

, A B ) +

10 A B ) +

11 A B ) +

12 A B ) +

1' A B ) +

1( A B ) +1) A B ) +

1* A B ) +

1+ A B ) +

18 A B ) +

1, A B ) +

20 A B ) +

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Section I20 -ar.s

Atte-/t uestions 120

Allo a3out '0 -inutes 4or t5is section

"se t5e Multi/le C5oice Anser S5eet /ro6i7e7

Select t5e alternati6e A B C or % t5at 3est ansers t5e 9uestion

1 What is the #undamental economic reason !hy nations trade,

-A. To earn income #rom overseas buyers

-B. To develop military alliances

-). To take advantage o# di##erences in #actor endo!ments

-+. To cause an appreciation in the currency

2 Which o# the #ollo!ing #actors !ould lead to an increase in the value o# the Australiandollar,

-A. An increase in / interest rates-B. A decrease in demand #or Australian e1ports

-). An increase in demand #or imports in Australia

-+. An increase in #oreign capital in#lo!

' An Australian business borro!s 5 million #rom an overseas bank to #und itse1pansion( 3o! !ould this transaction be recorded in Australia4s balance o# payments,

-A. A debit on the capital account

-B. A credit on the #inancial account

-). A debit on current trans#ers in the current account

-+. A credit on net income in the current account

( The #ollo!ing data is #rom the economy o# The Republic o# averick

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:ear I-/ort #rice

In7e;

E;/ort #rice

In7e;

00 05

2 0& 5

" 2 25

Which o# the #ollo!ing statements describes the terms o# trade in the Republico# averick,

-A. The terms o# trade improved in 6ear 2 and improved in 6ear "

-B. The terms o# trade deteriorated in 6ear 2 and improved in 6ear "

-). The terms o# trade improved in 6ear 2 and deteriorated in 6ear "

-+. The terms o# trade deteriorated in 6ear 2 and deteriorated in 6ear "

)

Which o# the #ollo!ing represents the e##ect o# imposing a tari## on an economy,

-A. The domestic price !ould increase to the equilibrium price -07e.

-B. +omestic production !ould increase #rom 08 to 082

-). 9mport volumes !ould increase #rom 082 to 08"

-+. :overnment revenue !ould be equal to the !orld price -07!.

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* Which o# the #ollo!ing is likely to reduce inequality in the global distribution o#income,

-A. An increase in agricultural subsidies in the ;/

-B. An increase in bilateral trade agreements bet!een developed nations

-). An increase in global interest rates

-+. An increase in multilateral trade agreements involving developing nations

+ 9n relation to e1change rate systems* !hen is a dirty #loat most likely to beimplemented,

-A. When an e1ternal shock causes a rapid change in the e1change rate

-B. When a government regards the value o# capital in#lo! to be too small

-). When a government regards the value o# capital in#lo! to be too large

-+. When e1portensand companies to

#oreigners

-billion.

=oans o!ed by#oreigners to

domesticcompanies and

#inancialinstitutions

-billion.

?alue o# domesticassets o!ned by

#oreigners

-billion.

?alue o# #oreignassets o!ned bydomestic citi>ensand companies

-billion.

500 200 &00 $00

2 '50 "20 @20 550

What changes have occurred bet!een 6ear and 6ear 2,

-A. A decrease in net #oreign debt and an increase in net #oreign equity

-B. An increase in net #oreign debt and an increase in net #oreign liabilities

-). A decrease in net #oreign debt and a decrease in net #oreign equity

-+. A decrease in net #oreign debt and a decrease in net #oreign liabilities

, Which one o# the #ollo!ing is not a #ree trade agreement,

-A. A/TA

-B. ATA

-). );RTA

-+. C7;)

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10 The #ollo!ing data is #rom the economy o# )ougar(

Balance o4 #a


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11 Which o# the #ollo!ing is a structural cause o# Australia4s current account de#icit,

-A. alling demand #or our e1ports #rom our trading partners

-B. An increase in domestic interest rates

-). An increase in demand #or imports during an economic ups!ing

-+. A lo! level o# household saving

12 The diagram belo! sho!s a #i1ed e1change rate system #or an economy(

What action !ill be required to #i1 the currency at /0(&0,

-A. The central bank !ill need to buy %00 billion on the #oreign e1change market

-B. The central bank !ill need to buy &00 billion on the #oreign e1change market

-). The central bank !ill need to sell $00 billion on the #oreign e1change market

-+. The central bank !ill need to sell 200 billion on the #oreign e1change market

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/

8uantity-billion.

0(&5

0(&0

$00 %00 &00

+

+


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1* Which o# the #ollo!ing best describes recent changes in Australia4s compositiono# trade,

-A. Australia has e1perienced increased e1ports to )hina

-B. Australia has e1perienced gro!th in revenue #rom services e1ports

-). Australian trade !ith the / has increased since the signing o# the ree Trade

Agreement

-+. ining production has made up a smaller proportion o# Australian e1ports inrecent years(

1+ A developing country requires #inancial and technical assistance to develop portin#rastructure to increase its e1port ability( Which global institution !ould provideassistance,

-A. The World Bank

-B. The World Trade Crganisation

-). The 9nternational onetary und

-+. The :&

1' Which o# the #ollo!ing is likely to occur i# the Australian dollar appreciatessigni#icantly against the currencies o# its trading partners,

-A. An increase in overseas students studying in Australia

-B. An increase in overseas tourists visiting Australia-). An increase in Australian !heat sales to overseas markets-+. An increase in the sale o# the latest imported electronic goods

1( The #ollo!ing in#ormation re#ers to a nation4s terms o# tradeE

:ear I-/ort #rice

In7e;

E;/ort #rice

In7e;

2005 @0 00

200% 05 0%

What !as the most likely e##ect o# the change in this nation4s terms o# tradeover this period,

-A. A decrease in its current account surplus-B. ;1port volumes e1ceed import volumes in both years-). ore imports can be purchased !ith the given level o# e1ports-+. e!er imports can be purchased !ith the given level o# e1ports

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20 Which set o# circumstances is likely #or a country e1periencing an increasein its current account de#icit,

-A. An increase in the capital and #inancial account surplus and anappreciation in the e1change rate

-B. A decrease in the capital and #inancial account de#icit and adepreciation in the e1change rate

-). A decrease in the capital and #inancial account de#icit and anappreciation o# the e1change rate

-+. An increase in the capital and #inancial account surplus and adepreciation o# the e1change rate

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Econo-icsSection II

(0 -ar.sAtte-/t uestions 212(

Allo a3out *0 -inutes 4or t5is section

Ans!er the questions in the spaces provided(

uestion 21 -0 marks.

The #ollo!ing diagram sho!s the market #or +?+ 7layers in an economy(

-a. +e#ine the term protection(

1

Question 21 continues over next page

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""*000

7rice-.

8uantity -per annum.

+

+

"0

220

2$*000 $2*000


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-b. 9denti#y the type o# protection given to domestic producers o# +?+ players(

1

-c. Cutline TWC reasons !hy the government may have given protection to the2

producers o# +?+ players(

-d. Cutline TWC economic advantages o# using this type o# protection #or the economy(

2

Question 21 continues over next page

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-e. +iscuss the implications o# a reduction in protection levels #or Australian #irms*(

individuals and governments(

End of Question 21

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-c. ;1plain the impacts on the economy o# Australia having a persistent)

)A+ problem(

End of Question 22

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-ii. ;1plain ho! the trend in the nationFs Terms o# Trade* as indicated by the2

table* could a##ect the nationFs e1ports(

-d. ;1plain TWC !ays in !hich AustraliaFs e1port base contributes to AustraliaFs

( current account de#icit problems(

-i.

-ii.

End of Question 23

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Mar.s

uestion 2( -0 marks.

The table belo! describes the average rates o# tari## protection in a hypothetical economy(

1,*8, 1,++8 1,82' 1,8*+ 1,,() 200'( 200)*

"%G 2"G 25G @G @G $(5G "(G

-a. 8uoting evidence #rom the table* identi#y the trend in the rates o# tari##1

protection in the economy(

-b. +escribe ho! the protectionist policies o# other nations impact on the2

Australian economy(

-c . +escribe C; multi


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-d. ;1plain !hy a government may over time aim to reduce the level o# protection(

(

End of Question 24

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Section III

Atte-/t eit5er uestion 2) or uestion 2*

Allo a3out '0 -inutes 4or t5is section

Ans!er the question on the !riting paper provided( ;1tra !riting paper is available( akesure you !rite your name on your response(

9n your ans!er you !ill be assessed on ho! !ell youE

• use your kno!ledge and the economic in#ormation provided

•apply economic terms* concepts* relationships and theory

• present a sustained* logical and !ell structured ans!er to the question

uestion 2) >20 -ar.s?

A@ree-ent A@ree-ent T


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9n your ans!er you !ill be assessed on ho! !ell youE

• use your kno!ledge and the economic in#ormation provided

• apply economic terms* concepts* relationships and theory

• present a sustained* logical and !ell structured ans!er to the question

uestion 2* >20 -ar.s?

+escribe the #actors causing an appreciation o# the Australian dollar and analyse

the e##ects o# an appreciation in the e1change rate o# the Australian dollar-against other currencies. on the per#ormance o# the Australian economy(

- End of questions -

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Economics Half Yearly