Jacaranda Key Concepts in VCE Economics 2 Units 3 & 4

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Question 7 Source: VCE 2020 Economics Exam, Section A, Q10 © VCAA

A fall in the equilibrium price but no change in equilibrium quantity could only occur from which one of the following combinations? a decrease in demand and an increase in supply an increase in demand and a decrease in supply a decrease in both demand and supply an increase in both demand and supply.

FS

A. B. C. D.

O

Question 8

PR O

Source: VCE 2019 Economics Exam, Section A, Q2 © VCAA

Daphne can make either three dresses or nine shirts per hour. For Daphne, the opportunity cost of making an extra dress is

E

one-third of a shirt. one-third of a dress. three shirts. nine dresses.

G

A. B. C. D.

PA

Question 9 Source: VCE 2019 Economics Exam, Section A, Q9 © VCAA

TE

The equilibrium price and equilibrium quantity both decrease. The equilibrium price and equilibrium quantity both increase. The equilibrium price decreases and the equilibrium quantity increases. The equilibrium price increases and the equilibrium quantity decreases.

CO RR EC

A. B. C. D.

D

If a severe drought affected this year’s wheat harvest, what would be the effect on the equilibrium price and equilibrium quantity of wheat?

Question 10

Source: VCE 2018 Economics Exam, Section A, Q11 © VCAA

Which one of the following is not a feature of a perfectly competitive market? Firms have ease of entry into and exit from the market. Products sold in the market are homogenous. Consumer sovereignty exists. Resources are not mobile.

N

A. B. C. D.

U

Question 11

Source: VCE 2017 Economics Exam, Section A, Q4 © VCAA

What would be the effect on the market for Good X if there were a rise in the price of a substitute good? A. B. C. D.

92

The demand curve would shift left and the equilibrium price of Good X would decrease. The supply curve would shift left and the equilibrium price of Good X would increase. The demand curve would shift right and the equilibrium price of Good X would increase. The supply curve would shift right and the equilibrium price of Good X would decrease.

Key Concepts VCE Economics 2 Units 3 & 4 Eleventh Edition

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5.8 Review

5.4 Encouragement of skilled immigration as an aggregate supply policy

5.3 The budget as an aggregate supply policy

5.5 Trade liberalisation as an aggregate supply policy

5.6 A market-based environmental strategy as an aggregate supply policy

5.1 Overview

5.7 Strengths and weaknesses of using aggregate supply policies — review

4.16 Review

4.12 The transmission mechanisms of monetary policy and their influence on the level of aggregate demand

macroeconomic goals and the affect on living standards

4.13 The RBA’s monetary policy stance

domestic macroeconomic goals and living standards

4.11 Conventional monetary policy and how the RBA can affect interest rates

4.10 Definition and aims of monetary policy, and the role of the RBA

achievement of domestic macroeconomic goals and living standards

3.2 The gains from international trade

3.1 Overview

domestic macroeconomic goals and living standards

2.13 Review

impact on the level of government debt

4.5 The budget outcome

4.6 The stance of budgetary policy — is it expansionary or contractionary?

of domestic macroeconomic goals over the past two years

2.11 The goal of full employment

2.5 The five-sector circular flow model to understand the macro influences on domestic economic activity

domestic economic conditions

domestic economic conditions

2.10 The goal of strong and sustainable economic growth

macroeconomic conditions

2.9 The goal of low and stable inflation (price stability

2.4 The business cycle and its cases

2.3 BACKGROUND KNOWLEDGE Nature, effects and measurement of economic activity

2.2 The difference between material and non-material living standards and factors that may affect each

2.1 Overview

1.11 Review

1.9 Types of market failure and government intervention to address market failure in Australia’s economy

1.10 Government intervention in markets that unintentionally leads to decreased efficiency

1.8 The meaning and significance of price elasticity of demand and supply

of resources

1.6 Microeconomics — the market as an important decision maker in Australia’s economy

1.4 Choice, opportunity cost and efficiency in resource allocation

1.2 BACKGROUND KNOWLEDGE What is economics?

1.3 Relative scarcity

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