Section I - Multiple Choice (3 Viewers)

[bell531]

Stop fucking asserting your "right" answers unless the question is posted and explained.

 

[FuseNick]

why bother i know im right anyways so stfu, how bout go have a look in your text book then have a cry and have fun at tafe next year mate.

 

[akim93]

11 is A i think
i checked the textbook and appreciation says imports are less expensive and an improvement in australia's international competitiveness

answe is A????

 

[vpa2891]

I'm wondering why 20 cant be D

 

[FuseNick]

11 is A i think
i checked the textbook and appreciation says imports are less expensive and an improvement in australia's international competitiveness

answe is A????

A. lower import prices and an increase in net foreign debt.

First part is correct but you pay less on net forein debt, as it is cheaper to pay off the debt as AUS$ buys more of the currency the debt is owed to.

 

[absorber]

A. lower import prices and an increase in net foreign debt.

First part is correct but you pay less on net forein debt, as it is cheaper to pay off the debt as AUS$ buys more of the currency the debt is owed to.

It's D.

You disproved A.
If export prices rise the terms of trade will improve, not deteriorate. Hence it cannot be B.
The CAD may improve for C, but inflation (at least, imported inflation) cannot occur as an appreciation if anything would cause imported DEflation to occur.

 

[FuseNick]

It's D.

You disproved A.
If export prices rise the terms of trade will improve, not deteriorate. Hence it cannot be B.
The CAD may improve for C, but inflation (at least, imported inflation) cannot occur as an appreciation if anything would cause imported DEflation to occur.

Yeh i was disproving A. Answer is b terms of trade deteriates, exports price rise = less demand, and higher amount of imports since imports are cheaper.

 

[bell531]

questions please. someone post them, that is

 

[ozziguy]

isnt it employed ppl who r leaving?? cause it goes "if people retrenched from their jobs did not actively seek employment"
doesnt that mean employed r leaving?? so unemployment would increase, as the number of unemployed remains same, but labour force decreases. therefore as a percentage, the rate of unemployed would b higher.

That is correct for that question. Even though he is leaving and will not be formally considered as "unemployed", the size of the labour forced decreased by one, which means that there is now one less employed person with the same amount of unemployed, which would increase the rate of unemployment.

 

[shantu1992]

Taking account of economic realities

 

[haruandyuki]

madsam you are hektik mate. i agree 12 is (A) bro.

For all of you that are wondering what question 12 was:

Year/Nominal GDP/CPI/HDI

1/6000/130/0.61

2/6800/150/0.76

According to the data, which statement is correct for this economy?
a) Real GDP has increased and the quality of life has improved
b) Real GDP has increased and the quality of life has declined
c) Real GDP has decreased and the quality of life has improved
d) Real GDP has decreased and the quality of lie has declined

This is how i worked it out, and what i believe to be right.

The Real GDP Formula is:

CPI previous year
--------------------- x GDP
CPI current year

Therefore:
130
----- x 6000 = 5200
150

This means that REAL GDP has decreased from 6000 to 5200, therefore the answer is C

Anyone disagree with this? Im interested to know because since people are saying its A it will haunt me.

 

[wolfhunter2]

I'm wondering why 20 cant be D

Did u forget to study or something?
Decentralised systems have a lack of regulation from government, allowing for (for eg) AWA's to have the employers minimum rights sacrificed for increased pay!!

 

[Yuan99]

A. lower import prices and an increase in net foreign debt.

First part is correct but you pay less on net forein debt, as it is cheaper to pay off the debt as AUS$ buys more of the currency the debt is owed to.

actually i put this answer down because first if the $AUD were to appreciate imports would be cheaper everyone knows that but what prompted this increas ???? dont forgot australia has a big spending problem therefore net foreign debt may be neccessarily decrease servicing costs may decrease also dont forget not all net foriegn debts are in different currencies. well thats my opinion i might be totally wrong

D is flawed becuase int comp may not necessarily decrease C dont think CAD would get better with more eco growth and spending prompted by the increase $AUD B TOT = export prices over import prices so how does Export decrease ? in the long term perhpas but the increas in the $aud may have been prompted by rising comoodity prices or higher demand fro commodities aka australias main exports ....... i think A or B would be the correct answer

Terms or Trade = Export(X) prices
------------------- X 100
Import(M) prices

TOT = PRICES NOT QUANTITY OF EXPORTS AND IMPORTS the dam formula says PRICES!!!!!!!! so i think its A lol ppl are getting work up man eco multi was tricky can we all agree on that ????? busz = hell compared with eco

 

[madsam]

For all of you that are wondering what question 12 was:

Year/Nominal GDP/CPI/HDI

1/6000/130/0.61

2/6800/150/0.76

This is how i worked it out, and what i believe to be right.

The Real GDP Formula is:

CPI previous year
--------------------- x GDP
CPI current year

Therefore:
130
----- x 6000 = 5200
150

This means that REAL GDP has decreased from 6000 to 5200, therefore the answer is C

Anyone disagree with this? Im interested to know because since people are saying its A it will haunt me.

Ok, even using that formula:

Year 1: Nominal GDP = 6000 and CPI = 130

Real GDP = 100/130 x nominal

Real = 4615

Year 2: Nominal =6800 and CPI = 150

Real = 130/150 x 6800

= 5893

therefore Real GDP of year 1<Real GDP of year 2

ergo, Real GDP has increased, A

 

[setonusyd]

Ok, even using that formula:

Year 1: Nominal GDP = 6000 and CPI = 130

Real GDP = 100/130 x nominal

Real = 4615

Year 2: Nominal =6800 and CPI = 150

Real = 130/150 x 6800

= 5893

therefore Real GDP of year 1<Real GDP of year 2

ergo, Real GDP has increased, A

No, you dont use a different base CPI for the two calculations. There is only one question. Is the base CPI 100 or 130. If its 100, then the answer is A, if its 130 then the answer is C.

Anyway, I'm confident that I got at least 17/20, not sure about 12, 19, 20 though.

I Put 12.C
19.A
20.D

 

[Nikkay75]

I've got no idea how I went. Estimations?

1. A
2. B
3. A
4. B
5. A
6. D
7. C
8. A
9. A
10. D
11. A
12. C
13. D
14. A
15. C
16. B
17. C
18. D
19. A
20. D

 

[madsam]

Well, in my defence i havn't actually done any eco study except wednesday night heh

- It's my worst 2 units out of the 12 i do, so i'm fairly sure it wont count

 

[haruandyuki]

Ok, even using that formula:

Year 1: Nominal GDP = 6000 and CPI = 130

Real GDP = 100/130 x nominal

Real = 4615

Year 2: Nominal =6800 and CPI = 150

Real = 130/150 x 6800

= 5893

therefore Real GDP of year 1<Real GDP of year 2

ergo, Real GDP has increased, A

No, you dont use a different base CPI for the two calculations. There is only one question. Is the base CPI 100 or 130. If its 100, then the answer is A, if its 130 then the answer is C.

Anyway, I'm confident that I got at least 17/20, not sure about 12, 19, 20 though.

I Put 12.C
19.A
20.D

I dont understand why you are using the base year of 100 to figure out the Real GDP. as setonusyd said, since were asked to find out the real gdp from year 1 - 2, not before that. I've been using the method above all year to calculate similar questions and have always seemed to get them correct. I guess we wont really know until the answers get released, but when that time comes i honestly wont give a rats ass.

 

[RaMaNa]

ey isnt the formula for real gdp

nominal gdp times by 100/CPI.
ive checked everywhere and thts the formula :S
is it? thts what my txtbook says. if u use that, than u get c, not a.

 

[pinkkate1406]

Labour force decreases but unemployed doesnt change cause the people retrenched are not actively seeking work and thus not in the unemployment figure. Hence unemployed stays same but labour force decreases

Unemployment rate= unemployed/labour force henceeeeeee unemployment rate would increase.

like 1/2 > 1/3

Thats what i rkn

so 19 is d?? please say yes haha

anyways. this is what i had:

1. a
2. b
3.c
4.b
5.a
6.d
7.c
8.a
9.a (not sure)
10. d
11. a (not sure)
12. c (now not sure after discussions in this thread)
13. d
14.a
15. c (i also thought d tho)
16. b
17. a
18. c( had no idea)
19. d
20.a