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 3 of 8

  1. Q4 · 2022 QCAA · Paper 1 · 1 mark
    QUESTION 4 A proposal to change Australia’s GST to a rate of 15% would be aiming to (A) stabilise aggregate demand in the economy. (B) decrease government revenue. (C) contract the economy. (D) broaden the tax base.
    Economic management
  2. Q5 · 2022 QCAA · Paper 1 · 1 mark
    QUESTION 5 Assume there is an increase in Australians preferring to rent rather than buy their own home. The effect on the transmission mechanism would be (ceteris paribus) (A) a change to how the transmission mechanism is channelled. (B) a decrease in the effective size of the transmission mechanism. (C) quicker interest rate changes so banks maintain th…
    Economic management
  3. Q6 · 2022 QCAA · Paper 1 · 1 mark
    QUESTION 6 Assume the Australian federal treasurer has handed down a deficit budget for the coming fiscal year, and subsequently there is a sudden downturn in consumer demand. The most likely change to the budget is (ceteris paribus) (A) no change in unemployment benefit payments and the budget target is still achievable. (B) an increase in unemployment be…
    Economic management
  4. Q7 · 2022 QCAA · Paper 1 · 1 mark
    QUESTION 7 Australia’s monetary policy is less effective when the economy is (A) recovering, because excess production capacity limits employment growth. (B) in a trough, because the average propensity to save is high due to lower consumer confidence. (C) in a downturn, because political considerations discourage potential reductions in the cash rate. (D)…
    Economic management
  5. Q8 · 2022 QCAA · Paper 1 · 1 mark
    QUESTION 8 Assume a central bank is concerned that house prices have increased in the past year. Which situation would be most likely to encourage the central bank to increase the official interest rate? (A) Inflation increases from below 1% and housing approvals continue to rise. (B) There is a short-term increase in house purchases causing current consum…
    Economic management
  6. Q9 · 2022 QCAA · Paper 1 · 1 mark
    QUESTION 9 Which policy mix is the most appropriate in the following scenario? • Annual consumer price index movement: (Y0) 100 to (Y1) 102. • Nominal gross domestic product movement: (Y0) 9.3billionto(Y1)9.3 billion to (Y1) 9.5 billion. • Non-accelerating inflationary rate of unemployment: (Y0) 4.5% to (Y1) 4.0%. • Dwelling approvals have fallen slightly from Y0 to Y…
    Economic management
  7. Q10 · 2022 QCAA · Paper 1 · 1 mark
    QUESTION 10 1995 2000 2005 2010 2015 2020 8 Tradable inflation Key 6 Tradable: Items exposed to a high degree of international 4 % competition 2 Non-tradable: Items exposed to a low degree of international 0 competition Date A 6 Non-tradable inflation 4 2 % 0 −2 1995 2000 2005 2010 2015 2020 Based on this hypothetical inflation data for Australia, which econ…
    Economic management
  8. Q11 · 2022 QCAA · Paper 1 · 8 marks
    QUESTION 11  (8 marks) Country A is dependent on oil exports. Their major oil destination country has discovered an environmentally sustainable substitute for oil. Explain and illustrate the effect on Country A using two different economic models.
    Economic management
  9. Q12 · 2022 QCAA · Paper 1 · 7 marks
    QUESTION 12  (7 marks) These measures are extracts from an Australian federal budget scenario. 1. Introduction of a temporary budget repair levy on incomes over 150000forthreeyears.2.Assistanceforlow−incomesingleparentswithanewallowanceof150 000 for three years. 2. Assistance for low-income single parents with a new allowance of 1000 per annum for each child aged 6 to 12. 3. Continuation of the move by the former government to i…
    Economic management
  10. Q13 · 2022 QCAA · Paper 1 · 12 marks
    QUESTION 13  (12 marks) The data represents a hypothetical economic situation. Country B: Exports and imports with the major trading partner Year-on-year percentage change in value 6 Key 5 Exports Imports 4 3 Percentage 2 1 0 −1 −2 2013 2014 2015 2016 2017 2018 2019 2020 2021 Central bank interest rates 6 5 4 Major trading partner Percentage 3 2 Country B 1…
    Economic management
  11. Q14 · 2022 QCAA · Paper 1 · 28 marks
    QUESTION 14  (28 marks) Sources 1 7 in the stimulus book present the Australian economy in a fictional setting. Analyse Sources 1 7 to evaluate the costs and benefits of changing the monetary policy stance from the perspective of Australian households.
    Economic management
  12. Q1 · 2021 QCAA · Paper 1 · 1 mark
    QUESTION 1 A primary economic objective of the Australian Government’s budget in 2021 was (A) reducing inflation. (B) keeping employment high. (C) maintaining a stable exchange rate. (D) achieving a current account surplus.
    Economic management
  13. Q2 · 2021 QCAA · Paper 1 · 1 mark
    QUESTION 2 The results of a cash rate decision are a reduction in interest payments on debt and an increase in the amount of income available for households and businesses. Which channel of the transmission mechanism is this cash rate change an example of? (A) savings and investment (B) asset prices and wealth (C) sector income (D) cash flow
    Economic management
  14. Q3 · 2021 QCAA · Paper 1 · 1 mark
    QUESTION 3 In contrast to macroeconomic policy, microeconomic reform aims to (A) limit government intervention in markets. (B) raise the competitiveness of export businesses. (C) improve the allocative efficiency of resource use. (D) increase long-term growth in gross domestic product.
    Economic management
  15. Q4 · 2021 QCAA · Paper 1 · 1 mark
    QUESTION 4 An economy is experiencing decreasing levels of economic activity. A cause for unemployment rates remaining at 5% (ceteris paribus) might be (A) areduction in the number of hours worked. (B) an increase in unemployment benefits. (C) arise in the number of school leavers. (D) adelay in workers retiring.
    Economic management
  16. Q5 · 2021 QCAA · Paper 1 · 1 mark
    QUESTION 5 Assume the Australian Government has simplified regulations in the medical and pharmaceutical industries. Identify the expected change to the aggregate demand/aggregate supply diagram (ceteris paribus). (A) Average prices rise and GDP decreases because the aggregate supply curve shifts to the left. (B) Average prices fall and GDP increases because…
    Economic management
  17. Q6 · 2021 QCAA · Paper 1 · 1 mark
    QUESTION 6 Which country would be most likely to experience a longer time lag in economic growth following a cash rate change (ceteris paribus)? (A) acountry where marginal propensity to consume is 0.7 (B) acountry where marginal propensity to import is 0.7 (C) acountry where marginal propensity to invest is 0.7 (D) acountry where marginal propensity to save…
    Economic management
  18. Q7 · 2021 QCAA · Paper 1 · 1 mark
    QUESTION 7 Identify the correct statement. Economic management policy Outcome (A) | Increasing the goods and services tax to eads to | an increase in household standard of improve tax efficiency living. (B) | Raising the tax-free threshold to lift eads to | an increase in equity in income household consumption distribution. (C) | Repaying Federal Government…
    Economic management
  19. Q8 · 2021 QCAA · Paper 1 · 1 mark
    QUESTION 8 Assume the current account has shown the trend in the graph for the last 16 quarters. Current account 0 ~ 31’ LO = WA p/ zg = -10- S 8 -15- =| & 3 ma 20-4 ae Ql Q@ Q3 4 Qt @ @ 4 QA Q@ @ Qa Qr@ Qa a Time (quarters) Which fiscal strategy would be most effective in addressing this issue in Australia (ceteris paribus)? (A) _ stimulating the economy to…
    Economic management
  20. Q9 · 2021 QCAA · Paper 1 · 1 mark
    QUESTION 9 The images provide information about the economic situation in Country A. Stimulus redacted. Which response to the situation does not represent a sustainable economic policy approach in Country A? (A) an increase in skilled migration to raise technical knowledge and skills (B) an increase in taxation incentives to encourage the delay of retirement…
    Economic management
  21. Q10 · 2021 QCAA · Paper 1 · 1 mark
    QUESTION 10 The table shows labour market data for an economy. Year Labour force Employed (7000) persons (000) 2021 580 550 2022 790 760 Based on the data in the table, fiscal policy measures (A) should be avoided because the number of employed persons has increased. (B) do not need to be changed because the employment rate is unchanged. (C) could be contrac…
    Economic management
  22. Q11 · 2021 QCAA · Paper 1 · 12 marks
    QUESTION 11  (12 marks) Analyse Sources 1–3 in the stimulus book to explain the impact of electricity prices on small and medium-sized businesses over the years 2014 to 2019. Draw a short-term AD/AS diagram in the space provided to support your explanation.
    Economic management
  23. Q12 · 2021 QCAA · Paper 1 · 13 marks
    QUESTION 12  (13 marks) Use Sources 4–7 in the stimulus book to evaluate the extent to which monetary policy is the appropriate policy lever to improve economic prosperity for Australian low-income households.
    Economic management
  24. Q13 · 2021 QCAA · Paper 1 · 25 marks
    QUESTION 13  (25 marks) Use Sources 8–14 in the stimulus book to evaluate which policy would be a more effective response to Australia’s ageing population: a policy that targets incentives to save for retirement or a policy that targets labour supply.
    Economic management