§-Economics Q&A
WA · SCSA← Economics
Economics Q&A by dot point
A short Q&A bank for every WA Economics syllabus dot point. Each question and answer is drawn directly from our worked dot-point page, so you can scan key concepts before opening the long-form answer.
Unit 3: Australia and the Global Economy
Describe the composition and direction of Australia's trade, explain the role of bilateral, regional and multilateral trade agreements, and analyse Australia's reliance on key trading partners
Explain how a floating exchange rate is determined by demand and supply, the causes of appreciation and depreciation, and the effects of exchange rate movements on the economy
Distinguish foreign direct investment from portfolio investment, explain why Australia is a net capital importer, and analyse the benefits and costs of foreign investment for the Australian economy
Analyse methods of protection (tariffs, subsidies, quotas) and the arguments for and against free trade and protection in the Australian context
Use opportunity cost ratios and a production possibility analysis to demonstrate how two countries both gain from specialising and trading, and explain the limits and distribution of those gains
Explain globalisation, the terms of trade and international competitiveness, and analyse Australia's trade relationships and the role of productivity
Explain the basis for trade using absolute and comparative advantage, opportunity cost and the gains from specialisation and trade
Define and calculate the terms of trade, explain the causes of movements in Australia's terms of trade, and analyse the effects of a rising or falling terms of trade on national income and the balance of payments
Explain the structure of the balance of payments, the current and capital and financial accounts, and the causes and consequences of current account deficits and surpluses
Explain the causes of Australia's current account deficit using the savings-investment gap, distinguish net foreign debt from net foreign equity, and evaluate whether a current account deficit is a problem
Unit 4: Macroeconomic Theory and Economic Policy
Explain the components of aggregate demand and aggregate supply, the AD/AS model, the business cycle and the multiplier
Explain the five-sector circular flow of income, identify the leakages and injections, and use the equilibrium condition to explain how the level of economic activity is determined
Distinguish income from wealth, explain how the Lorenz curve and Gini coefficient measure inequality, and evaluate the causes, effects and policy responses to income inequality in Australia
Define and measure economic growth using real GDP, explain its sources from aggregate demand and aggregate supply, and evaluate the benefits and costs of growth including sustainability
Explain fiscal policy, the federal budget, automatic stabilisers and discretionary policy, budget outcomes and government debt, and the strengths and weaknesses of fiscal policy
Define and measure inflation using the CPI, distinguish demand-pull from cost-push inflation, and explain the effects of inflation and the rationale for the RBA's inflation target
Explain how wages are determined in the labour market, define and measure labour productivity, and analyse the factors and policies that influence labour productivity growth
Explain the macroeconomic objectives of low inflation, full employment and economic growth, how each is measured, and the conflicts between them
Explain microeconomic reform and supply-side policy, how it raises productivity and aggregate supply, and evaluate examples in the Australian economy
Explain monetary policy, the role of the RBA, the cash rate as the policy instrument, the transmission mechanism, the policy stance, and the strengths and weaknesses of monetary policy
Describe the phases of the business cycle, explain the causes of cyclical fluctuations including cumulative processes and shocks, and explain how turning points and stabilisers shape the cycle
Explain the multiplier process, calculate the multiplier from the marginal propensities, and use it to analyse the effect of a change in injections on the level of economic activity
Define and measure unemployment and the participation rate, distinguish the types of unemployment, explain the concept of full employment and the NAIRU, and analyse the costs of unemployment