Jacaranda Key Concepts In VCE Economics 1 Units 1 & 2 by jacarandaaus

Jacaranda Key Concepts In VCE Economics 1 Units 1 & 2

“c06TheEconomicsOfInternationalTrade_PrintPDF” — 2022/5/31 — 13:29 — page 53 — #53

Question 20 MC

Concerning the exchange rate for the A$, which statement is least correct?

A. A rise in the value of the A$ against the US$ would make our exports more attractive to US buyers. B. A rise in the value of the A$ against other currencies could be caused by an increase in our sales of exports due to stronger economic activity abroad.

C. Stronger levels of consumer confidence in Australia can lead to an increase in imports and a weaker A$.

D. The value of the A$ is determined in the foreign exchange market by the number of buyers of the A$, relative to the number of sellers.

Resources

Resourceseses

6.8 Section B: Extended response questions

Digital documents Multiple choice answer grid (doc-37962) Multiple choice answers (doc-37963)

Question 1 (5 marks)

Question 2 (2 marks)

a. Explain what is meant by a trade deficit. (1 mark) b. Identify and outline two events that could cause Australia to run a trade deficit in the future. (2 marks) c. Explain how China’s recent trade barriers on some Australian exports would be likely to affect our trade balance. (2 marks)

Outline how free international trade can slow inflation and improve material living standards.

CO RR EC

Question 3 (4 marks)

(2 marks)

Between March 2020 and March 2022, the US consumer confidence index fell from 101 points to 59 points. Explain how you would expect this to affect each of the following: a. b. c. d.

Australia’s trade balance The US trade balance Australia’s level of AD, Australia’s GDP, employment and income.

(4 marks)

Question 4 (13 marks)

a. Contrast the policies of trade protectionism, free trade and trade liberalisation. (3 marks) b. Explain whether the Australian government fully adopted the policy of free trade. (4 marks) c. The Australian car industry used to enjoy high levels of protectionism from imports including high tariffs, import quotas and subsidies. i. Outline the likely reasons for this protection, noting the highest level of tariff protection that was previously given to the car industry. (1 mark) ii. Describe the changes in the level of tariff protection for Australia’s car industry. (2 marks) iii. The manufacture of cars in Australia ceased in 2017. Explain why you think this happened, along with the main macroeconomic effects of this closure. (3 marks)

TOPIC 6 The economics of international trade

Jacaranda Key Concepts In VCE Economics 1 Units 1 & 2

Articles inside

8.8 Review

8.7 The responses by economic agents to improve environmental sustainability

8.4 The reasons why environmental sustainability is of importance to Australia and globally

8.3 Measures of the environmental sustainability of economic activity

8.5 The economic factors influencing the extent of environmental sustainability

8.6 Different perspectives about the issue of environmental sustainability

8.2 Definition and general nature of environmental sustainability

8.1 Overview

7.8 Review

7.7 The Australian government’s response to address inequality in the distribution of income and wealth

7.5 Economic factors affecting income and wealth inequality in Australia

7.6 Different perspectives about the distribution of income and wealth

7.4 The reasons why the distribution of income and wealth is an important issue

7.3 Measures of Australia’s distribution of income and wealth

7.2 Definition, nature and direction of income and wealth

7.1 Overview

6.8 Review

6.7 Economic responses and government policies involving international trade

6.6 Different perspectives about the issue of international trade

6.5 The economic factors influencing international trade

6.4 The benefits of international trade for Australia and the global economy

6.3 Measurement of Australia’s international transactions

6.2 Definition, nature and direction of international trade

6.1 Overview

5.8 Review

5.7 The Australian government’s economic responses to address changes in the labour market

5.6 Different perspectives about the changing labour market

5.3 Measures of Australia’s changing labour market

5.5 The economic factors influencing changes in Australia’s labour market

5.2 Definition and nature of the labour market

5.1 Overview

4.16 Review

standards

4.13 The potential costs of economic growth

4.12 The potential benefits of economic growth

4.10 Aggregate supply — its meaning, importance and factors affecting its level and economic activity

4.11 The measurement of economic growth using changes in Gross Domestic Product (GDP

4.8 BACKGROUND KNOWLEDGE: Overview of factors that may affect Australia’s level of economic activity

4.9 Aggregate demand — its meaning, importance and factors affecting its level and economic activity

4.6 Types of economic indicators

4.5 The business cycle

4.4 The five-sector circular flow model

4.3 The meaning of material and non-material living standards

3.5 Review

3.4 The effectiveness of strategies used by businesses to influence consumer behaviour

3.1 Overview

3.3 The effectiveness of strategies used by government to influence consumer behaviour

2.10 Review

2.9 Researching a contemporary Australian or global market

2.8 How changes in relative prices and profits affect Australia’s resource allocation

equilibrium price and quantity

2.3 BACKGROUND KNOWLEDGE: How markets make key economic decisions — the big picture

2.4 The law of demand and movements along the demand curve

2.5 The law of supply and movements along the supply curve

2.2 The nature of perfectly competitive and other types of markets in an economy

2.1 Overview

1.9 Review

1.5 Decision making in different economic systems

1.4 Making economic decisions

1.3 The basic economic problem of relative scarcity

1.8 Governments and their role as economic agents

1.6 Consumers and their behaviour as economic agents

1.1 Overview

1.7 Businesses and their behaviour as economic agents

1.2 What is economics?