HSC Economics Practice Questions

HSC Economics Practice Questions (from various sources)

Topic 1 - The Global Economy                    

Examine the main features of the global economy and the nature and extent of interdependence between economies. Assess the impact on the global economy of international organisations and contemporary trading bloc agreements. Discuss the impact of globalisation on standards of living in the global economy and the effect globalisation has had on countries with differing levels of economic development. Analyse the impact of globalisation on an economy other than Australia; including the strategies used by that economy to promote growth and development. Examine the impact of globalisation on unemployment, inflation and external stability. Analyse the impact of globalisation on government economic policies. Assess the main factors that influence the international business cycle. Assess the potential impact on the environment of economic development. Discuss the effects of protectionist policies on the global economy. Evaluate the impact of reduced levels of protection on developed and developing nations in the global economy. Explain how and why nations protect domestic industries. Examine the consequences of the unequal distribution of wealth. Examine the impact of globalisation for an economy you have studied other than Australia. Analyse the impact of international agreements and organisations on globalisation. Discuss the role and influence of international organisations, contemporary trading blocs and trading agreements in the global economy for Australia. Explain the impact of the World Trade Organisation and regional trading blocs on global trade flows. Describe ONE quality of life indicator used to measure economic development in the global economy. Discuss the impact of globalisation on living standards in the global economy. Discuss the impact of trade flows on economic growth and living standards in the global economy. Explain the impact of global protectionist policies on Australia.

Topic Two — Australia’s Place in the Global Economy    

Examine recent trends in the composition and direction of Australia’s trade flows. Analyse the relationship between Australia’s foreign liabilities and Balance of Payments. Examine the recent trends in the size and composition of Australia’s balance of payments and the issues associated with Australia’s balance of payments. Examine the nature of and influences on Australia’s Capital and Financial Account.

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Examine the effects of a continuing current account deficit on the Australian economy. Analyse how globalisation has affected individuals, firms and government in Australia. Examine the consequences of a high level of foreign debt on the Australian economy. Analyse the relationship between the terms of trade, international competitiveness and structural change in the Australian economy. Critically analyse the different methods of exchange rate determination used in countries around the world. Analyse the impact of a depreciation of the Australian dollar on the Australian economy. Evaluate the reasons for international protectionist policies and their impacts upon the Australian economy. Examine the changes in Australia’s free trade and protectionist policies in recent years and their impact on the Australian economy. Evaluate the impact of globalisation on the Australian economy. Examine the impact of changes in the global economy on Australia’s economic performance. Analyse the relationship between international competitiveness and structural change in the Australian economy. Examine the relationship between the current account deficit, net foreign debt, and net foreign liabilities. Examine the factors that cause the value of the Australian dollar to fluctuate, and the impacts of these changes. Analyse the impact of globalisation on key economic indicators of another country in comparison to Australia Evaluate the reasons for international protectionist policies and their impact on the Australian economy and quality of life. Discuss the effects of protectionist policies on the global economy Analyse the impact of globalisation on the level of development within the global economy Analyse the impact of the bop on the Australian economy Analyse the relationship between the TOT and the bop Analyse the impact of changes in the global economy on Australia's current account and net foreign debt Analyse the impact of globalisation on the economic performance of the Australian economy Analyse the relationship between structural change and international competitiveness in the Australian economy Analyse the impact of movements in the exchange rate on the Australian economy Evaluate Australia's policies regarding free trade and protection Analyse the link b/w the various components of the BOP Analyse the link b/w Australia's BOP and its exchange rate Analyse the impact of globalisation on Aust's BOP and evaluate govt policies to improve Aust's international competitiveness [2003 Independant Trial] Discuss the characteristics of globalisation and analyse its impacts on the economic development and living standards of an economy other than Aust [2003 Independant Trial] Outline the indicators of globalisation and explain how globalisation has affected an economy other than Australia [2001 Trial] Explain why the Australian exchange rate fluctuates and discuss the effect of these fluctuations of the Australian economy [2001 Trial] Explain why the Australian exchange rate fluctuates and discuss the effect of these fluctuations of the Australian economy [2001 Trial]

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Outline three factors that may cause an appreciation of Australia's exchange rate. Discuss the impact of an exchange rate appreciation on Australia's current account balance. Explain how exchange rate fluctuations can affect inflation. Discuss the impact of a depreciation in the value of the Australian dollar on Australia's balance of payments.

Topic Three — Economic Issues                          

Examine the arguments for and against increasing economic growth rates. Analyse the economic and social problems created by unemployment. Analyse the impacts of inflation on the Australian economy. Outline the causes of inflation in the Australian economy. Examine the consequences of high levels of unemployment and high levels of inflation on the Australian economy. Discuss the benefits and costs of low inflation for the economy. Analyse the effect of a continued current account deficit on the Australian economy. Examine recent trends in the distribution of income in Australia and the impact of specific economic policies on this distribution. Outline how income and wealth are distributed in Australia. Analyse the economic and social costs and benefits of inequality in the distribution of income. Identify some of the main environmental issues currently facing the Australian economy, and suggest economic solutions to them. Examine the economic issues associated with the goal of ecologically sustainable development. With reference to a contemporary environmental issue, analyse the economic arguments for and against resource exploitation. Explain the private and social costs and benefits of environmental management, making reference to at least one Australian environmental issue. Analyse the impact of globalisation on the economic growth, quality of life and external stability of global economies Explain the main causes of inflation, the effects of inflation and govt policy initiatives to reduce inflation Discuss the policies which Australian governments have used to address the issue of distribution of income and wealth. Examine recent trends in the distribution of income in Australia and the impact of specific economic policies on this distribution. Outline how income and wealth are distributed in Australia. Analyse the economic and social costs and benefits of inequality in the distribution of income. Analyse the factors influencing movements in the australian dollar in recent years and explain how exchange rate movements affect trade and financial flows in australia. Analyse the impact of protectionist policies on the domestic and global economies Discuss the impacts of globalisation on an economy that you have studied in relation to it's economic development. Analyse the impact of globalisation on economic growth, quality of life and external stability on an economy other than Australia. Discuss the strategies used by either the Australian economy, or an economy other than Australia, to promote economic growth and development. Explain how the Reserve Bank uses domestic market operations to change the cash rate in Australia.

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Analyse the impact of an increase in the cash rate on economic growth in Australia. Discuss the impact of labour market policies on the unemployment rate in the Australian economy. Discuss the impact of economic growth on Australia's balance of payments.

Topic Four — Economic Policies and Management                          

Examine the objectives of the current policy mix in the Australian economy. Analyse the methods by which governments can finance a budget deficit and the impact of each on the economy. Explain the impact of the current policy mix on the economy. Outline policies that may be used by the government to reduce unemployment and inflation. Examine the government's use of macroeconomic policy to meet its economic objectives? Explain why governments use microeconomic policies in addition to macroeconomic policies. Analyse the impact of a change in interest rates on the Australian economy. Examine recent changes in Australia’s trade and industry policy and the anticipated effects of these changes. Explain why Australia has moved from a centralised to a more decentralised system of industrial relations. Outline the current methods for wage determination in Australia. Evaluate recent labour market policies in Australia. Examine the limitations on policy implementation for governments in Australia. Discuss the policies which Australian governments have used to address the issue of economic growth. Discuss the policies which Australian governments have used to address the problem of unemployment. Discuss the policies which Australian governments have used to address the problem of inflation. Discuss the policies which Australian governments have used to address the problem of external stability. Discuss the policies which Australian governments have used to address the issue of distribution of income and wealth. Discuss the policies which Australian governments have used to address the issue of environmental management. Explain the role of monetary policy in achieving the economic goals of full employment, inflation and economic growth Explain how macroeconomic and microeconomic policies may be used to achieve external balance for the Australian economy [2004 Catholic Trial] Discuss the effectiveness of monetary policy and other economic policies in achieving price stability in Aust [2003 Independant Trial] Discuss the use of fiscal policy in achieving the govts economic objectives in Aust [2003 Independant Trial] Analyse the role played by economic policies in promoting globalisation in EITHER the Australian economy OR an economy other than Aust [2004 Catholic Trial] Analyse govt policies that may influence the distribution of income in Aust [2004 Catholic Trial] Analyse the role and rationale of macroeconomic policies in achieving the objectives of economic management in Australia. Analyse the role of microeconomic policies in improving efficiency and productivity of markets in Australia.