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 4 of 8

  1. Q1 · 2020 QCAA · Paper 1 · 1 mark
    QUESTION 1 In a situation where monetary policy is changed, the transmission mechanism will depend on (A) changes to the structure of the economy over time. (B) asset and wealth values of high-income households. (C) the substitutability of imports and domestic goods and services. (D) whether households and firms respond by saving more now or later.
    Economic management
  2. Q2 · 2020 QCAA · Paper 1 · 1 mark
    QUESTION 2 Assume the Australian Government tightens regulations on working holiday visas. The economic effect of this policy would be (ceteris paribus) (A) a fall in the supply of seasonal labour. (B) arise in the supply of seasonal labour. (C) a fall in the demand for seasonal labour. (D) arise in the demand for seasonal labour.
    Economic management
  3. Q3 · 2020 QCAA · Paper 1 · 1 mark
    QUESTION 3 In Australia, taxation bracket creep (A) is the result of indexing income tax bands to inflation. (B) compensates taxpayers on the threshold taxation levels. (C) raises tax revenue without explicitly increasing tax rates. (D) occurs when tax revenue and expenditure work in opposition.
    Economic management
  4. Q4 · 2020 QCAA · Paper 1 · 1 mark
    QUESTION 4 Within a total government budget of 300billion,theplannedsurplusfortheyearwas300 billion, the planned surplus for the year was 4 billion. In that year, the actual budget recorded an unplanned increase of 6billioningovernmentexpenditure.Inthefollowingyear,theplanneddeficitwas6 billion in government expenditure. In the following year, the planned deficit was 2 billion. This suggests that (A) the budget outcome is expansionary. (B) the budget outcome is co…
    Economic management
  5. Q5 · 2020 QCAA · Paper 1 · 1 mark
    QUESTION 5 Assume the hypothetical economic scenario shown. This stimulus has not been published for copyright reasons. Based on this scenario, identify the economic management required (ceteris paribus). (A) Reduce oil price inflation by providing a short-term subsidy to the business sector. (B) Reduce overseas cost inflation pressures by delaying governmen…
    Economic management
  6. Q6 · 2020 QCAA · Paper 1 · 1 mark
    QUESTION 6 Which diagram best represents the trade-offs that should be considered with demand management policies at different points of the economic cycle? LRAS A LRAS, LRAS, (A) * (B) Price Price level level AD, AD, AD, AD, > > Real GDP Real GDP (C) + (D) Price Price level level Real GDP
    Macroeconomic objectives and theory
  7. Q7 · 2020 QCAA · Paper 1 · 1 mark
    QUESTION 7 Which statement does not describe a relationship between an cquitable distribution of income and economic growth? (A) Higher aggregate supply leads to greater equality of income over time. (B) Economic growth over time may reduce equality of income in market-based economies. (C) Income inequality lowers aggregate demand due to the different propen…
    Macroeconomic objectives and theory
  8. Q8 · 2020 QCAA · Paper 1 · 1 mark
    QUESTION 8 Excerpt from the Reserve Bank of Australia’s Statement on Monetary Policy The increase in interest rates — the first in five years — is necessary to help sustain non-inflationary growth into the future ... Although the timing of the move has been influenced by the latest rise in US interest rates, the move itself is driven by the marked turnaround…
    Economic management
  9. Q9 · 2020 QCAA · Paper 1 · 1 mark
    QUESTION 9 Consider the following data. ¢ Employment in public administration and education has risen by 2.5 percentage points. ¢ Employment in recreation and retail has fallen by 2.3 percentage points. Which statement correctly identifies the economic problem and the response required? Economic problem Policy response (A) Resources are underutilised so | fi…
    Macroeconomic objectives and theory
  10. Q10 · 2020 QCAA · Paper 1 · 1 mark
    QUESTION 10 The graph shows estimated taxes paid and transfers received by Australian householders. Total tax and transfers 6075 Key 50-4 . . WB black stripe white 40-4 =| RE: = 307 ae) ed a 20- Z) 105 0 1 I | a i |_| ae —_ 7 slg s' 6) §' o' 8 & Sg N we x oe J me, J o, s cs F S & Private income (…
    Economic management
  11. Q11 · 2020 QCAA · Paper 1 · 6 marks
    QUESTION 11 (6 marks) The JobSeeker payment is the main income support payment for Australians over 22 years of age who are unemployed and looking for work. Explain how automatic stabilisers operate and describe how JobSeeker payments stabilise the economic cycle. Draw a diagram in the space provided to support your answer.
    Economic management
  12. Q12 · 2020 QCAA · Paper 1 · 9 marks
    QUESTION 12 (9 marks) Hypothetical data and economic information is provided. Business and consumer confidence, New vehicle sales, Australia Australia 20- 1400- 10- Business confidence 1200-4 a = 1000- 0-7 NA 2 Index won, 2 800- _1n_ \ aN Ss '0 VON 2 600 Consumer confidence~s o 20> 400 -30 | 200 Yl Y2 Y3 Y4 Y5 Yl Y2 Y3 Y4 Y5 Year Year RESERVE BANK OF AUSTRAL…
    Macroeconomic objectives and theory
  13. Q13 · 2020 QCAA · Paper 1 · 9 marks
    QUESTION 13 (9 marks) An economic scenario is provided. The 2021/22 federal budget is expected to port data shows coal exports are 2022. A 7.1bsurplusisanticipatedtheexpectedtofallfrom2021to2022byapproximately7.1b surplus is anticipated the expected to fall from 2021 to 2022 by approximately 70 billion. following year. (Forecast released May ) (Data released 10 July 2022) 2022 CPI data shows that movements in the consumer pr…
    Economic management
  14. Q14 · 2020 QCAA · Paper 1 · 28 marks
    QUESTION 14 (28 marks) Use Stimulus 1-8 in the stimulus book to evaluate whether government intervention to influence either housing demand or housing supply would be more effective in reducing housing price pressures and improving living standards.
    Economic management
  15. Q1 · Original practice · 1 mark
    A hypothetical cash rate falls from 4.35% to 3.85%. The decrease is
    Macroeconomic objectives and theory
  16. Q2 · Original practice · 1 mark
    A worker receives a 4% increase in nominal wages while consumer prices rise by 6%. Their purchasing power
    Macroeconomic objectives and theory
  17. Q3 · Original practice · 1 mark
    A household has disposable income of 1000andconsumptionof1000 and consumption of 850. When income rises to 1100,consumptionrisesto1100, consumption rises to 920. Its initial APC and its MPC are, respectively,
    Macroeconomic objectives and theory
  18. Q4 · Original practice · 1 mark
    Which change directly increases aggregate demand, all else equal?
    Macroeconomic objectives and theory
  19. Q5 · Original practice · 1 mark
    In a simple closed economy with no taxation, the marginal propensity to save is 0.20. The simple Keynesian multiplier is
    Macroeconomic objectives and theory
  20. Q6 · Original practice · 1 mark
    In a five-sector circular-flow model, total injections are 260billionandtotalleakagesare260 billion and total leakages are 290 billion. If these flows persist initially, the model predicts
    Macroeconomic objectives and theory
  21. Q7 · Original practice · 1 mark
    Annual inflation falls from 5% to 2%, and the CPI continues to rise. This is
    Macroeconomic objectives and theory
  22. Q8 · Original practice · 1 mark
    A café employee works 12 hours each week, wants more hours and is available to work them. This worker is
    Macroeconomic objectives and theory
  23. Q9 · Original practice · 1 mark
    The non-accelerating inflation rate of unemployment is best described as the unemployment rate
    Macroeconomic objectives and theory
  24. Q10 · Original practice · 1 mark
    The diagram shows a change from E1 to E2. Which event could generate the change, ceteris paribus?
    Macroeconomic objectives and theory