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2.1 Overview
f. Select one contemporary example of government failure and discuss the intended and unintended impacts of the Australian government’s intervention in the market on efficiency in the allocation of resources. (5 marks) i. Subsidies paid to the coal industry ii. Setting minimum wages iii. Introducing the carbon tax on emissions.
1.11 Exam questions
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Track your results and progress Find all this and MORE in jacPLUS Section A — Multiple choice questions All correct answers are worth 1 mark each; an incorrect answer is worth 0. Question 1 Source: VCE 2021 Economics Exam, Section A, Q2 © VCAA Which of the following would most likely be the effect on the fruit market of a shortage of fruit pickers during a harvesting period? A. a decrease in supply to the market and higher prices B. a decrease in demand in the market and lower prices C. an increase in supply to the market and lower prices D. an increase in demand in the market and higher prices. Question 2 Source: VCE 2021 Economics Exam, Section A, Q3 © VCAA Which one of the following is not likely to contribute to a rise in house prices? A. lowering of interest rates B. easing restrictions on lending C. government spending on new public housing D. removal of border restrictions, allowing more immigration. Question 3 Source: VCE 2021 Economics Exam, Section A, Q5 © VCAA The opportunity cost of building a new road network could be A. increased noise pollution. B. a reduction in public transport usage. UNCORRECTED PAGE PROOFS C. the inability to adequately fund education. D. the road levy charged to all users of the road.
Source: VCE 2021 Economics Exam, Section A, Q14 © VCAA The diagram below shows the market for alcohol.
S2
Price of alcohol C B A Quantity of alcohol
S1 D1
D2 A successful advertising campaign designed to inform the public of the dangers of excessive alcohol consumption would result in a change in the equilibrium position from A. C to B. B. A to D. C. C to D. D. A to B.
Question 5
Source: VCE 2021 Economics Exam, Section A, Q15 © VCAA Which one of the following products would have a vertical supply curve? A. apples B. haircuts C. streaming services D. paintings by an artist who is now dead.
Question 6
Source: VCE 2020 Economics Exam, Section A, Q3 © VCAA Which one of the following best describes the characteristics of a public good? A. excludable and rivalrous B. excludable and non-rivalrous C. non-excludable and rivalrous D. non-excludable and non-rivalrous.
