VCE EconomicsPractice Examination 1

This paper covers

• Microeconomics applied to housing: demand and supply, price elasticity, market failure and unintended consequences of intervention (Unit 3 AOS 1)
• Domestic macroeconomic goals and aggregate demand: full employment, economic growth, and the mortgage cash-flow squeeze on consumption (Unit 3 AOS 2)
• The international economy: exchange rate depreciation, the terms of trade and international competitiveness (Unit 3 AOS 3)
• The policy mix: budgetary and monetary policy for stabilisation, and aggregate supply policies for housing capacity (Unit 4 AOS 1-2)

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.