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Economic management practice

QCE Economics · Original practice questions with worked solutions

All economic management practice questions

62 original questions · Page 3 of 3

  1. Q83 · Original practice · 6 marks
    During a construction boom, the central bank raises the cash rate while the government begins a large untargeted building package. Explain why the policies may work against each other and why their effects will not necessarily cancel exactly.
    Economic management
  2. Q87 · Original practice · 5 marks
    A non-refundable training tax credit is worth 2000.Aworkerwithonly2000. A worker with only 600 of tax liability can use 600;aworkerwith600; a worker with 5000 of liability can use the full credit. Explain one equity issue and evaluate making the credit refundable.
    Economic management
  3. Q88 · Original practice · 6 marks
    A cyclone damages productive facilities. Government reconstruction spending then rises. Explain the potentially opposing AD/AS effects and why an increase in construction activity is not sufficient evidence that the economy has fully recovered.
    Economic management
  4. Q89 · Original practice · 5 marks
    Both columns are estimates at normal economic activity with current policy settings. Calculate the change in the underlying deficit. Recommend a policy response and explain one equity or growth trade-off.
    Economic management
  5. Q91 · Original practice · 20 marks
    A drought disrupts food production and freight. Use all four sources to evaluate a broad cash rebate against targeted freight repair. Recommend a response using price stability and full employment. Explain how monetary policy could complement the chosen response.
    Economic management
  6. Q92 · Original practice · 20 marks
    A government is choosing a response to an ageing population. Use all four sources to evaluate a savings incentive and work/training support. Recommend the more effective option using sustainable economic growth and equity.
    Economic management
  7. Q93 · Original practice · 20 marks
    Use all four sources to evaluate two ways to reduce the structural deficit: an equal percentage cut to every spending program or a revenue-base reform with protected low-income transfers. Recommend a strategy using fiscal sustainability and equity.
    Economic management
  8. Q94 · Original practice · 20 marks
    A tourism region has lost international visitors. Use all sources to evaluate a temporary festival rebate and an airport/skills upgrade. Recommend a policy mix using regional employment and sustainable economic growth.
    Economic management
  9. Q95 · Original practice · 20 marks
    Use all sources to decide whether a government should prioritise household purchase subsidies or network investment for electricity storage. Evaluate using price stability and sustainable development, and address short- and long-run effects.
    Economic management
  10. Q96 · Original practice · 20 marks
    Use all sources to evaluate an automation grant alone against an automation grant combined with worker retraining. Recommend a package using productivity and full employment.
    Economic management
  11. Q97 · Original practice · 20 marks
    A central bank is considering another cash-rate increase after several recent increases. Use all sources to evaluate further tightening against holding the current rate. Recommend a stance using price stability and full employment.
    Economic management
  12. Q98 · Original practice · 20 marks
    Use all sources to evaluate immediate against staged construction of a commuter rail project. Recommend a schedule using economic efficiency and price stability. Include the opportunity cost of delay.
    Economic management
  13. Q99 · Original practice · 20 marks
    Use all sources to assess a claim that a tax-funded education package is economically neutral because government purchases and tax receipts are equal. Evaluate the package using sustainable growth and equity.
    Economic management
  14. Q100 · Original practice · 20 marks
    Use all sources to recommend a national policy mix for the two regions. Evaluate using price stability, full employment and equity. Explain why neither one national cash-rate change nor identical fiscal spending in both regions is sufficient by itself.
    Economic management