WA · SCSAQ&A
EconomicsQ&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 partners0Q&A pairs
- 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 economy2Q&A pairs
- 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 economy0Q&A pairs
- Analyse methods of protection (tariffs, subsidies, quotas) and the arguments for and against free trade and protection in the Australian context2Q&A pairs
- 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 gains0Q&A pairs
- Explain globalisation, the terms of trade and international competitiveness, and analyse Australia's trade relationships and the role of productivity1Q&A pairs
- Explain the basis for trade using absolute and comparative advantage, opportunity cost and the gains from specialisation and trade0Q&A pairs
- 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 payments0Q&A pairs
- 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 surpluses1Q&A pairs
- 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 problem0Q&A pairs
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 multiplier0Q&A pairs
- 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 determined0Q&A pairs
- 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 Australia0Q&A pairs
- 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 sustainability1Q&A pairs
- Explain fiscal policy, the federal budget, automatic stabilisers and discretionary policy, budget outcomes and government debt, and the strengths and weaknesses of fiscal policy0Q&A pairs
- 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 target2Q&A pairs
- Explain how wages are determined in the labour market, define and measure labour productivity, and analyse the factors and policies that influence labour productivity growth0Q&A pairs
- Explain the macroeconomic objectives of low inflation, full employment and economic growth, how each is measured, and the conflicts between them0Q&A pairs
- Explain microeconomic reform and supply-side policy, how it raises productivity and aggregate supply, and evaluate examples in the Australian economy0Q&A pairs
- 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 policy0Q&A pairs
- 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 cycle0Q&A pairs
- 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 activity0Q&A pairs
- 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 unemployment0Q&A pairs