ATARMAxxing · Economics
WACE Economics Practice Questions
64 exam-style questions · full worked solutions
The 64 practice questions inside the WACE Economics Mastery Pack, grouped by area of study. Every question comes with a full worked solution.
- Australia and the global economy
- Multiple choice × 24
- Written response × 8
- Macroeconomic theory and economic policy
- Multiple choice × 24
- Written response × 8
Sample question
An illustrative economy reports exports $360b, imports $330b and nominal GDP $1,500b in year 1; exports $396b, imports $374b and GDP $1,600b in year 2. (a) Calculate trade openness in both years and its percentage-point change. (5 marks) (b) Calculate each trade balance and explain why openness and the balance can move in different directions. (3 marks)
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Answer: Worked solution
(a) Year 1 openness=(360+330)÷1,500×100=46.0% [1 for setup, 1 for result]. Year 2=(396+374)÷1,600×100=48.125%≈48.1% [1 for setup, 1 for result]. It rises 2.125 percentage points [1]. (b) Balances are +$30b and +$22b [1 for both correct balances]. The surplus narrows $8b; openness uses X+M relative to GDP, whereas the balance uses X−M, so total trade can rise while imports grow enough to narrow the surplus [2 for movement and explanation]. Values are illustrative and nominal, so no real-volume or welfare claim follows.
Included in the WACE Economics Mastery Pack
20 full-length practice exams with worked solutions, 20 revision notes, 64 practice questions and 200 flashcards.
Preview a sample note and question free on the WACE Economics hub →