VCE EconomicsPractice Examination 18

This paper covers

• Microeconomics & market failure: relative scarcity, opportunity cost, PPF, demand/supply movements vs shifts, equilibrium, elasticity, efficiency types, and the externality/subsidy framework using the EV uptake flavour.
• Domestic macro goals & AD/AS: components of AD (C, I, G1, G2, X-M) and AS factors, the three goals with current benchmarks (3-3.5% growth, 2-3% CPI, ~4-4.5% NAIRU), measurement, goal conflicts, and links to living standards.
• International economy: gains from trade and trade liberalisation, balance of payments (CAD vs KAFA), terms of trade, exchange rate determination and effects, international competitiveness.
• Macro management policy: budgetary policy (stabilisers, outcomes, financing, strengths/weaknesses) and monetary policy (cash rate transmission, stance) as AD policies, plus aggregate supply policies (training, R&D, infrastructure, subsidies, tax reform, immigration, trade liberalisation) and their evaluation.

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.