VICEconomics
Unit 3: Australia's economic prosperity
4 dot points across 3 inquiry questions. Click any dot point for a focused answer with worked past exam questions where available.
What factors influence Australia's macroeconomic performance?
What are the domestic macroeconomic goals and what determines their achievement?
How does the market system allocate resources and what role is there for government intervention?
- The forms of market failure (public goods, externalities, asymmetric information, market power) and the rationale for and forms of government intervention to correct market failure, including indirect taxes, subsidies, regulation, public provision and direct provision
A focused VCE Economics Unit 3 AoS 1 answer on market failure. Identifies the four forms (public goods, externalities, asymmetric information, market power), draws the negative externality diagram, and analyses the five forms of government intervention with Australian examples.
8 min answer → - The market mechanism and the role of demand and supply in determining relative prices and the allocation of resources, including the conditions of perfect competition, the law of demand, the law of supply, equilibrium price and quantity, and movements along versus shifts of the curves
A focused VCE Economics Unit 3 AoS 1 answer on the market mechanism. Defines perfect competition, draws demand and supply with their shift factors, distinguishes movements along from shifts, finds equilibrium price and quantity, and applies the model to the Australian housing market.
8 min answer →