QCEVault

Economics questions and solutions

Browse original practice and official past-paper questions. Each question has its own link, with its source and worked solution.

186 questions · Page 2 of 8

  1. Q10 · 2024 QCAA · Paper 1 · 1 mark
    QUESTION 10 Assume this current data represents an economy similar to Australia’s economy. Unemployment Underemployment Underlying inflation Headline inflation 4.0% 5.8% 6.5% 7.3% Non-accelerating Real gross domestic Wage Price Index Public debt inflationary rate of product per annum unemployment 3.1% 120% of GDP 1.8% 3.8% Ceteris paribus, which are the appr…
    Economic management
  2. Q11 · 2024 QCAA · Paper 1 · 4 marks
    QUESTION 11  (4 marks) The federal government decides to significantly increase spending on military defence over the long term. Describe the concept of opportunity cost using an example based on the given scenario. How might this decision have an impact on the federal government’s objective of stabilising the economic cycle?
    Economic management
  3. Q12 · 2024 QCAA · Paper 1 · 10 marks
    QUESTION 12  (10 marks) The graph shows a hypothetical situation faced by an Australian federal government budget in 2026. 27 26 Percentage of GDP 25 24 23 22 21 20 2015 2019 2023 2010 2011 2012 2013 2014 2016 2017 2018 2020 2021 2022 2024 2025 2026 Key Revenue Expenditure a) Describe the economic issue shown and explain the two causes. [6 marks] b) Ident…
    Macroeconomic objectives and theory
  4. Q13 · 2024 QCAA · Paper 1 · 11 marks
    QUESTION 13  (11 marks) Hypothetical annual data for an economy similar to Australia’s economy is shown. Housing Cash Exchange rate % pricesrate8withmajorrise10andrisingtradingpartnerperannumhasappreciatedAUD prices rate 8% with major rise 10% and rising trading partner per annum has appreciated AUD 0.80 to AUD…
    Macroeconomic objectives and theory
  5. Q14 · 2024 QCAA · Paper 1 · 4 marks
    QUESTION 14  (4 marks) The graphs refer to a hypothetical scenario of Australia’s international travel exports. Australian overseas short-term arrivals by reason 200 500 Visiting family Holiday Short-term arrivals Short-term arrivals 150 450 (thousands) (thousands) 100 300 50 150 0 0 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 100 40 Visiting friends E…
    Economic management
  6. Q15 · 2024 QCAA · Paper 1 · 21 marks
    QUESTION 15  (21 marks) Use all of Sources 1–8 to analyse the economic issue and evaluate a demand-side and a supply-side approach being taken by Australian governments. Draw a conclusion about which approach is more effective, using the criterion of future employment.
    Economic management
  7. Q1 · 2023 QCAA · Paper 1 · 1 mark
    QUESTION 1 At different stages of the business cycle, automatic stabilisers always act to (A) change aggregate demand. (B) increase aggregate demand. (C) decrease aggregate demand. (D) maintain aggregate demand.
    Economic management
  8. Q2 · 2023 QCAA · Paper 1 · 1 mark
    QUESTION 2 If the Australian Government decided to reintroduce an inheritance tax, this policy would (ceteris paribus) (A) increase the budget deficit. (B) raise Australia’s foreign debt. (C) improve the distribution of income and wealth. (D) encourage people to save for their retirement income.
    Economic management
  9. Q3 · 2023 QCAA · Paper 1 · 1 mark
    QUESTION 3 A movement in the cash rate from 3% to 4.5% is equal to (A) 0.15 percentage points. (B) 150 basis points. (C) 150 per cent. (D) 15 per cent.
    Macroeconomic objectives and theory
  10. Q4 · 2023 QCAA · Paper 1 · 1 mark
    QUESTION 4 Inflation targeting (A) guarantees that inflation remains within a band of 2% to 3%. (B) assists with managing an economy’s inflation expectations. (C) encourages the banking sector to pass on rate changes. (D) is most effective with cost-push inflation issues.
    Economic management
  11. Q5 · 2023 QCAA · Paper 1 · 1 mark
    QUESTION 5 Assume the government significantly increases excise taxes on fuels to encourage more electric vehicles. How will this initiative affect the Australian economy? (A) increase domestic-based inflation (B) increase the supply of electric cars (C) raise employment in the Australian car industry (D) raise transportation costs of fruit and vegetable…
    Economic management
  12. Q6 · 2023 QCAA · Paper 1 · 1 mark
    QUESTION 6 To improve housing affordability, a government plans to release more land for houses and introduce a first home owners’ grant. The likely impact is that house prices (A) should increase. (B) should decrease. (C) cannot be predicted. (D) would remain unchanged.
    Economic management
  13. Q7 · 2023 QCAA · Paper 1 · 1 mark
    QUESTION 7 Capital goods B A Consumer goods The movement of an economy from point A to point B could be attributed to (A) moving manufacturing and research and development projects overseas. (B) increasing productivity in export-focused industries and technology change. (C) reducing investment in manufacturing and reducing cyclical unemployment. (D) an o…
    Economic management
  14. Q8 · 2023 QCAA · Paper 1 · 1 mark
    QUESTION 8 If the Reserve Bank of Australia increases interest rates relative to our trading partners, it will cause (ceteris paribus) (A) a depreciating effect on the exchange rate. (B) a reduction in the federal budget deficit. (C) an inflow of foreign financial capital. (D) a decrease in export prices.
    Economic management
  15. Q9 · 2023 QCAA · Paper 1 · 1 mark
    QUESTION 9 A government is interpreting a model of a labour supply curve in a highly developed economy. W1 Wage rate S2 W0 L1 L3 L2 Hours worked Assuming the average wage moves from W0 to W1, employees’ marginal propensity to consume leisure will (A) increase. (B) decrease. (C) remain constant. (D) decrease at an increasing rate.
    Macroeconomic objectives and theory
  16. Q10 · 2023 QCAA · Paper 1 · 1 mark
    QUESTION 10 The data shows an economic scenario over a three-year period. Year 1 Year 2 Year 3 Nominal GDP (billion)700730745Budgetsurplus( billion) 700 730 745 Budget surplus ( billion) 100 115 140 Which economic policies would improve this situation? (A) raising the age pension and increasing income taxes (B) selling government assets and reducing retirement age (C) increasing reti…
    Economic management
  17. Q11 · 2023 QCAA · Paper 1 · 4 marks
    QUESTION 11  (4 marks) Explain one way that monetary policy is transmitted through the Australian economy following a rise in interest rates.
    Economic management
  18. Q12 · 2023 QCAA · Paper 1 · 4 marks
    QUESTION 12  (4 marks) Assume the graph represents a recent event experienced by the Australian economy that required economic management. LRAS SRAS2 SRAS1 P2 Price level P1 AD Y2 YFE Real GDP Explain a likely cause and short-term effect of the event.
    Macroeconomic objectives and theory
  19. Q13 · 2023 QCAA · Paper 1 · 8 marks
    QUESTION 13  (8 marks) Assume that the economy is at point A on the economic cycle and the Australian Government is considering its fiscal policy response. A Real GDP Time Explain what is happening with income tax receipts at point A and whether income tax should be reduced.
    Economic management
  20. Q14 · 2023 QCAA · Paper 1 · 13 marks
    QUESTION 14  (13 marks) The data and information shown represent an economic issue in Australia. Superannuation is a percentage payment from current income by an employee. The purpose is to save for a future income in retirement. Policy option 1 Policy option 2 Women given incentive to top up One-off taxation levy for low personal superannuation accounts sup…
    Economic management
  21. Q15 · 2023 QCAA · Paper 1 · 22 marks
    QUESTION 15  (22 marks) Use all Sources 1–8 in the stimulus book to prepare your response. Explain the rationale for the scenario presented to reduce payroll tax in Australia. Evaluate the benefits and costs using the perspectives of households, businesses and government.
    Economic management
  22. Q1 · 2022 QCAA · Paper 1 · 1 mark
    QUESTION 1 What is the primary aim of microeconomic reform? (A) improve living standards (B) reduce income inequality (C) increase economic efficiency (D) decrease demand-pull inflation
    Economic management
  23. Q2 · 2022 QCAA · Paper 1 · 1 mark
    QUESTION 2 The significance of aggregate supply policies in Australia’s economic history was that they (A) increased the availability of local goods and services. (B) maximised sustainable economic growth. (C) achieved short-run employment gains. (D) supported domestic businesses.
    Economic management
  24. Q3 · 2022 QCAA · Paper 1 · 1 mark
    QUESTION 3 How is microeconomic reform represented in the aggregate demand / aggregate supply (AD/AS) model? (A) The AS curve shifts to the right and real gross domestic product increases. (B) The AD curve shifts to the right and real gross domestic product increases. (C) There is an expansionary movement along the AS curve and real gross domestic product…
    Economic management