QCE EconomicsPractice Examination 10

This paper covers

• International trade theory — absolute and comparative advantage
• Trade barriers — tariffs, welfare effects, deadweight loss
• Balance of payments structure — current account, capital and financial account
• External stability as a macroeconomic objective
• Exchange rate determination under Australia's floating regime
• AD/AS model — demand-side shocks, multiplier effects
• Australia's macroeconomic objectives and trade-offs
• Fiscal policy — budget stances, automatic stabilisers
• Monetary policy — RBA cash rate, transmission channels
• Terms of trade — measurement and macroeconomic consequences
• Net foreign liabilities and current account deficit
• WTO dispute resolution and trade agreements
• Structural unemployment and globalisation
• Income distribution and living standards effects of trade shocks

Students are permitted to bring into the examination the materials normally allowed for this subject. Answer all questions in the spaces provided.

This is an ATARMAxxing practice paper. It is not an official examination and is not affiliated with, endorsed by, or produced by the VCAA, NESA or the QCAA.