Section I - Multiple Choice (4 Viewers)

[weirdguy99]

When is that 'determine (forgot his name..)' fella coming back with the answers?

 

[Urgh]

James Ruse is a public school...

shit you're from james ruse? is it true you all do that shit where you just all have the same essays and rewrite it over and over till you memorise it?
cause i heard at marking they know when theyve got james ruse when like 30 essays come up in a row and theyre pretty much the same word for word

 

[Freddici]

shit you're from james ruse? is it true you all do that shit where you just all have the same essays and rewrite it over and over till you memorise it?
cause i heard at marking they know when theyve got james ruse when like 30 essays come up in a row and theyre pretty much the same word for word

Does that even work?? You need to learn how to twist your essays.

 

[weirdguy99]

shit you're from james ruse? is it true you all do that shit where you just all have the same essays and rewrite it over and over till you memorise it?
cause i heard at marking they know when theyve got james ruse when like 30 essays come up in a row and theyre pretty much the same word for word

That would probably fall under plagiarism, and since we all did that 'all your own work' crap, they would probably get penalised.

 

[kev-is-red]

shit you're from james ruse? is it true you all do that shit where you just all have the same essays and rewrite it over and over till you memorise it?
cause i heard at marking they know when theyve got james ruse when like 30 essays come up in a row and theyre pretty much the same word for word

No I don't go to James Ruse.

 

[steven12345]

You's are dumb ! Question 7 is D. 100%. Why? Because TOT deals with PRICE. Meaning that even if the economy is selling one EXPORTED good, and importing 1000 goods . As long as the price of the export is high , and import is low. The tot will be favourable. As all it is , the price of exports, relative to imports. Thus, the answer is D , as an increase in the VALUE OF THE AUD , would mean EXPORTS ARE MORE EXPENSIVE , and IMPORTS are less expensive. You's are overreading and overthinking the question. Just understand that, the TOT is not VOLUME , thus economic activity depite increasing the VOLUME of imports to satisfy needs, and MIGHT lead to an increase in the VOLUME of exports, this has nothing to do with TOT , as the TOT has got to do with price, which an APPRECIATION will do. Simple as that.

 

[PhysicsGirl]

You's are dumb ! Question 7 is D. 100%. Why? Because TOT deals with PRICE. Meaning that even if the economy is selling one EXPORTED good, and importing 1000 goods . As long as the price of the export is high , and import is low. The tot will be favourable. As all it is , the price of exports, relative to imports. Thus, the answer is D , as an increase in the VALUE OF THE AUD , would mean EXPORTS ARE MORE EXPENSIVE , and IMPORTS are less expensive. You's are overreading and overthinking the question. Just understand that, the TOT is not VOLUME , thus economic activity depite increasing the VOLUME of imports to satisfy needs, and MIGHT lead to an increase in the VOLUME of exports, this has nothing to do with TOT , as the TOT has got to do with price, which an APPRECIATION will do. Simple as that.

I think it is you who is over-reading the question. The question was "What would reduce the impact of the the worsening of the TOT", not what would improve the TOT, the TOT worsened from the previous year, therefore an increase in government spending will stimulate the economy leading to a higher standard of living, income, standards, etc, and hence reduce the impact that the deterioration of the TOT had on the economy. The answer is C.

 

[michaeljennings]

I think it is you who is over-reading the question. The question was "What would reduce the impact of the the worsening of the TOT", not what would improve the TOT, the TOT worsened from the previous year, therefore an increase in government spending will stimulate the economy leading to a higher standard of living, income, standards, etc, and hence reduce the impact that the deterioration of the TOT had on the economy. The answer is C.

+1

 

[jishac]

Yeah, the answer has got to be C for 7

 

[Skriker]

12 is not c , it's d , because it's not 'income tax which is constantly changed and shit. It's d because as economicactivity increases, people are going to be working more, and as a result of working more, theirs going to be greater incomes, meaning that they are going to move up the tax brackets, meaning theirs going to be increase progressive taxation receipts, unemployment benefits will fall (as more people are working)

No it is C like he said because In an economic expansion ie an upturn people move into higher tax brackets hence the government earns more and cyclical unemployment is being reduced therefore they dont have to pay out as much for UE benefits. C AND. expansionary fiscal policy involves either an increase in payment schedule for one or more of the transfer systems or payment to all who qualify. That is, the unemployment compensation might be increased by 5 percent or all Social Security recipients might receive an extra $500 payment, right from the text book therefore answer is C.

Oh and this
Expansionary Fiscal Policy: The recommended fiscal policy to correct the problems of a business-cycle contraction is expansionary fiscal policy. Expansionary fiscal policy includes any combination of an increase government purchases, a decrease in taxes, or an increase in transfer payments

THEREFORE
CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC!

 

[funkygirl59]

No it is C like he said because In an economic expansion ie an upturn people move into higher tax brackets hence the government earns more and cyclical unemployment is being reduced therefore they dont have to pay out as much for UE benefits. C AND. expansionary fiscal policy involves either an increase in payment schedule for one or more of the transfer systems or payment to all who qualify. That is, the unemployment compensation might be increased by 5 percent or all Social Security recipients might receive an extra $500 payment, right from the text book therefore answer is C.

Oh and this
Expansionary Fiscal Policy: The recommended fiscal policy to correct the problems of a business-cycle contraction is expansionary fiscal policy. Expansionary fiscal policy includes any combination of an increase government purchases, a decrease in taxes, or an increase in transfer payments

THEREFORE
CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC!

Nah mate it's D.

 

[Skriker]

Nah mate it's D.

Expansionary fiscal policy includes any combination of an increase government purchases, a decrease in taxes, or an increase in transfer payments, transfer payments are those too the unemployed which are benefits so an increase in transfer payments means that there will be an increase in the unemployment benefits so its C.
Whats your proof its D mate? It clearly says there will be an increase transfer payments which are benefits too the unemployed if expansionary policy is used.

 

[funkygirl59]

Expansionary fiscal policy includes any combination of an increase government purchases, a decrease in taxes, or an increase in transfer payments, transfer payments are those too the unemployed which are benefits so an increase in transfer payments means that there will be an increase in the unemployment benefits so its C.
Whats your proof its D mate? It clearly says there will be an increase transfer payments which are benefits too the unemployed if expansionary policy is used.

An economic expansion refers to an increase in economic growth, not expansionary fiscal policy. What is the IMPACT of this on government revenues and expenditures is the question. Not the response. I'm sure from here you get it: when the economy is growing there is an automatic increase in tax receipts and unemployment benefits decrease i.e. the automatic stabilisers work to counteract the rapid growth.

 

[Skriker]

An economic expansion refers to an increase in economic growth, not expansionary fiscal policy. What is the IMPACT of this on government revenues and expenditures is the question. Not the response. I'm sure from here you get it: when the economy is growing there is an automatic increase in tax receipts and unemployment benefits decrease i.e. the automatic stabilisers work to counteract the rapid growth.

yes the economic expansion involves an increase in growth but what causes an economic expansion is expansionary fiscal policy therefore with the economic expansion this has therefore impacted on the governments transfer payments and progressive tax. Resulting in increase of transfer payments and a decrease progressive tax.

 

[determine]

Okay, here are the answers (I did the paper):

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

good luck everyone!

 

[funkygirl59]

yes the economic expansion involves an increase in growth but what causes an economic expansion is expansionary fiscal policy therefore with the economic expansion this has therefore impacted on the governments transfer payments and progressive tax. Resulting in increase of transfer payments and a decrease progressive tax.

Dude. this is just a basic automatic stabilisers question that is impossible to explain if you don't get the theory. I'm sure you do though.

If the question was: "What happens to the government's tax and spending when there is an increase in economic growth?" you would say D. Because rising incomes and employment = more tax revenue, whilst falling unemployment = less unemployment benefits. And that's all the question's asking!

you're looking at it COMPLETELY backwards.
If it said what has CAUSED an economic expansion, then you say a decrease in tax and increase in spending. but it's the IMPACT. I don't know how else i can explain it...

 

[Skriker]

Dude. this is just a basic automatic stabilisers question that is impossible to explain if you don't get the theory. I'm sure you do though.

If the question was: "What happens to the government's tax and spending when there is an increase in economic growth?" you would say D. Because rising incomes and employment = more tax revenue, whilst falling unemployment = less unemployment benefits. And that's all the question's asking!

you're looking at it COMPLETELY backwards.
If it said what has CAUSED an economic expansion, then you say a decrease in tax and increase in spending. but it's the IMPACT. I don't know how else i can explain it...

hmm I guess your right, I was thinking that with the cause of it as well as the impact, who knows maybe there will be 2 answers for 12 haha

 

[determine]

please stop arguing. you sent me a private message telling me to change my answer to C, but I know for sure the answer is D. this was one of the easiest questions of the paper and is not something that should be overanalysed. point is, during an expansion, fewer people are unemployed (therefore less unemployment benefits need to be provided) and companies are more profitable as consumers are willing to spend more in good times (therefore increasing company taxation), as well as the fact that as more people are in work, there is greater personal income tax to be paid to the government. so increased company tax and increased personal income tax lead to greater taxation receipts, ceteris paribus of course. no more arguing about that question! don't worry, it's only one mark!

 

[determine]

hmm I guess your right, I was thinking that with the cause of it as well as the impact, who knows maybe there will be 2 answers for 12 haha

definitely not 2 answers.. C and D are the complete opposite of one another, hence only one would be awarded as correct.

 

[PhysicsGirl]

Yeah, 12 is D. In an expansion, unemployment is low, (therefore less unemployment benefits), people are working and earning more (therefore more income tax taken out). If the question was asking for the impact of a contraction on Government expenditure and revenue, then yes C would be correct, but it's not what it is asking. Some of you must read the question carefully before jumping to conclusions.