§-Quick questions
NSWEconomicsTopic 2: Australia's Place in the Global Economy
Quick questions on Australia's free trade and protection policy, and the terms of trade (HSC Economics Topic 2)
7short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.
What is methods of protection?Show answer
A government can shield domestic producers from foreign competition using four main methods:
What is australia's shift from protection to free trade?Show answer
Australia was historically one of the more protectionist advanced economies, particularly in manufacturing. Since the 1980s, successive governments (beginning with the Hawke-Keating microeconomic reform program) have progressively dismantled tariffs:
What is the terms of trade?Show answer
The terms of trade measures the ratio of the prices an economy receives for its exports to the prices it pays for its imports:
What is effects of terms-of-trade movements on the Australian economy?Show answer
An improvement in the terms of trade:
What is always give the terms-of-trade formula before interpreting a number?Show answer
Write "(export price index / import price index) times 100" first, then state whether the resulting figure is above or below the base of 100, then say what that means for national income.
What is anchor every claim with a figure AND a year?Show answer
Replace "Australia has reduced protection" with "the passenger motor vehicle tariff fell from 45 percent in 1988 to 5 percent by 2010". Replace "the terms of trade rose during the mining boom" with "the terms of trade index rose to a peak of around 145 in 2011 (illustrative ExamExplained series modelled on the ABS/RBA pattern)".
What is read a terms-of-trade chart like a scientist?Show answer
For a data/stimulus item, first DESCRIBE the trend (rises, peaks, falls, troughs, with figures and years), then EXPLAIN with a cause (commodity demand/supply shifts), then say what it IMPLIES for real national income, the exchange rate or the current account.
Have a question we have not covered?
This dot-point answer is short enough that we have not extracted many short questions yet. Read the full dot-point answer or ask Mo, our study assistant, in the chat for follow ups.