Download Economics marking guidelines 2006

Marking Guidelines for the EBE Economics Trial HSC
Examination, 2006
Section I
Multiple Choice
1c
2d
3c
4a
5d
6a
7b
8c
9d
10 b
11 b
12 b
13 d
14 c
15 a
16 c
17 d
18 b
19 d
20 b
Section II
Question 21
a. Distinguish between net foreign debt and net foreign equity
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2
1
Correctly defines NFD and NFE, noting the difference between them
Defines NFD and/or NFE and/or fails not note the difference between
them
b. Describe recent changes in the size and pattern of investment in the global
economy
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3
Provides characteristics and features of a range of changes in the size and
pattern of investment in the global economy
Provides characteristics and features of changes in the size and/or pattern
of investment in the global economy
Provides characteristics and features of changes in the size and/or pattern
of investment in the global economy
2
1
c. Explain the impact of financial flows on developing and advanced economies
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Demonstrates a clear and concise understanding of a range of impacts
on developing and advanced economies
Demonstrates an understanding of a range of impacts on developing
and advanced economies
Demonstrates an understanding of impacts on developing and advanced
economies
Provides a limited response
4-5
3
2
1
Question 22
a. Distinguish between the underlying budget outcome and the headline budget
outcome
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Clearly notes the difference between the underling and deadline budget
outcome
Sketches the meaning of the budget outcome
2
1
b. Use and example to explain why the projected budget outcome and the actual
budget outcome are different
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3
Demonstrates a clear and concise understanding of the reasons for
differences between projected and actual budget outcomes
Provides relevant examples
Demonstrates an understanding of the reasons for differences between
projected and actual budget outcomes
May provide relevant examples
Demonstrates a limited understanding of the reasons for differences
between projected and actual budget outcomes OR provides a definition
for the budget outcome
2
1
c. Assess the impact of recent fiscal outcomes on price stability in Australia
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Demonstrates a clear and concise understanding of recent fiscal policy
in Australia
Makes a judgement about the impact of recent policy on inflation in
Australia
Demonstrates an understanding of recent fiscal policy in Australia
Makes a judgement about the impact of recent policy
Demonstrates a limited understanding of fiscal policy in Australia
Provides a sketch about the impacts
Demonstrates a limited understanding of fiscal policy in Australia
4-5
3
2
1
Question 23
a. Identify the coefficient used to measure the extent of income inequality from a
Lorenz curve.
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Correctly Identifies the coefficient used to measure the extent of income
inequality from a Lorenz curve
eg: A
----------A+B
1
b. Outline how the Lorenz curve is used to measure the level of income inequality
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Sketches in general terms how the Lorenz curve is used to measure the 2
level of income inequality
1
Demonstrates a limited understanding of the use of the Lorenz curve
c. Explain why wealth is more unevenly distributed than income
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Demonstrates a clear and concise understanding of the reasons for 3
wealth being more unevenly distributed than income
Demonstrates some understanding of the reasons for wealth being more 2
unevenly distributed than income
Sketches in general terms limited reasons for wealth being more 1
unevenly distributed than income
d. Discuss the benefits and costs of inequality in income distribution in Australia
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Demonstrates a clear and concise understanding of a range of benefits 3-4
and costs of inequality in income distribution
Provides an outline of some costs and/or benefits of inequality in the 2
distribution of income
Demonstrates a limited understanding of inequality in the distribution of 1
income
Question 24
a. Identify ONE factor affecting the supply of the Australian dollar
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Correctly identifies one factor affecting supply of the AUD
1
b. Define the term exchange rate
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2
Provides a clear and concise definition of an exchange rate
Demonstrates some understanding of the meaning of the term exchange 1
rate
c. Describe what is meant by a floating exchange rate
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Provides a range of characteristics and features of a floating 3
exchange rate
Provides some characteristics and features of a floating 2
exchange rate
1
Provides a some information about floating exchange rates
d. Outline the effects of fluctuations in the Australian dollar on Australia’s exports
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Sketches in general terms a wide range of effects of 3-4
fluctuations in the exchange rate on Australia’s exports
Incorporates both positive and negative effects
Sketches in general terms a range of effects of fluctuations in 2
the exchange rate on Australia’s exports
Incorporates both positive and negative effects
Sketches in general terms at least one effect of fluctuations in 1
the exchange rate on Australia’s exports
Section III
Question 25
Outline the causes of unemployment and examine the relationship between
employment and economic growth
• Sketches in general terms a range of causes of unemployment
• Demonstrates a clear and concise understanding of the relationship
between employment and economic growth
• Integrates an extensive and appropriate range of economic terms with
relevant concepts, relationships and theory
• Synthesises economic data and other information to develop a sustained,
logical and well structured response
17-20
• Sketches in general terms some causes of unemployment
• Demonstrates an understanding of the relationship between employment
and economic growth
• Consistently applies appropriate economic terms, relevant concepts,
relationships and theory
• Uses economic data and other information to develop a logical and
structured response
13-16
• Sketches in general terms some causes of unemployment
• Provides some understanding of the relationship between employment and
economic growth
• Applies appropriate economic terms, concepts and relationships
• Uses some economic data and other information to develop a coherent
response
9-12
• Sketches in general terms a limited number of causes of unemployment
• Provides characteristics and features of employment and economic growth
• Uses some appropriate economic terms, concepts and relationships
5-8
• Uses some economic information to develop a generalised response
• Lists some factors affecting unemployment
• Uses some economic terms and/or concepts
• Presents a limited response
1-4
Answers could include:
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Definition of unemployment and economic growth
Correlation between levels of employment and economic growth
Increased economic growth may increase spending on education and training
for structural unemployed
Causes of unemployment – economic growth, macro and micro economic
policies,
NAIRU
Phillips curve (short run and long run)
Skills shortages in the labour market
Recent impact of workplace relations reforms on employment
Measures of economic growth and unemployment
Relationship between sources of AD and impact on employment
Question 26
Outline the macroeconomic policies available to the government for economic
management in Australia and examine the effectiveness of macroeconomic policy in
achieving the federal government’s objectives
• Sketches in general terms a range of macroeconomic policies available to
the government for economic management in Australia
• Demonstrates a clear and concise understanding of the effectiveness of
macroeconomic policy in achieving the federal government’s objectives
• Integrates an extensive and appropriate range of economic terms with
relevant concepts, relationships and theory
• Synthesises economic data and other information to develop a sustained,
logical and well structured response
17-20
• Sketches in general terms some macroeconomic policies available to the
government for economic management in Australia
• Demonstrates an understanding of the effectiveness of macroeconomic
policy in achieving the federal government’s objectives
• Consistently applies appropriate economic terms, relevant concepts,
relationships and theory
• Uses economic data and other information to develop a logical and
structured response
13-16
• Sketches in general terms some macroeconomic policies available to the
9-12
government for economic management in Australia
• Provides some understanding of the effectiveness of macroeconomic policy
in achieving the federal government’s objectives
• Applies appropriate economic terms, concepts and relationships
• Uses some economic data and other information to develop a coherent
response
• Sketches in general terms a limited number of macroeconomic policies
available to the government for economic management in Australia
• Provides characteristics and features of the effectiveness of
macroeconomic policy in achieving the federal government’s objectives
• Uses some appropriate economic terms, concepts and relationships
• Uses some economic information to develop a generalised response
5-8
• Lists some factors affecting macroeconomic policies available to the
government for economic management in Australia
• Uses some economic terms and/or concepts
• Presents a limited response
1-4
Answers could include:
 A sketch of fiscal, monetary and prices and incomes policies as types of macro
policies available (focus on fiscal and monetary)
 Economic objectives in relation to economic growth, inflation, unemployment,
external balance, income distribution and management of the environment
 Use of micro policy to support macro policy
Section IV
Question 27
Analyse the impact of protection on the global economy
• Demonstrates a clear and concise understanding of the impact of protection
on the global economy
• Integrates an extensive and appropriate range of economic terms with
relevant concepts, relationships and theory
• Synthesises economic data and other information to develop a sustained,
logical and well structured response
17-20
• Demonstrates an understanding of the impact of protection on the global
economy
• Consistently applies appropriate economic terms, relevant concepts,
relationships and theory
• Uses economic data and other information to develop a logical and
structured response
13-16
• Provides some understanding of the impact of protection on the global
economy
• Applies appropriate economic terms, concepts and relationships
• Uses some economic data and other information to develop a coherent
response
9-12
• Provides characteristics and features of protection on the global economy
• Uses some appropriate economic terms, concepts and relationships
• Uses some economic information to develop a generalised response
5-8
• Lists some factors affecting protection on the global economy
• Uses some economic terms and/or concepts
• Presents a limited response
1-4
Answers could include:
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Definition of protection
Theoretical treatment of a range of types of protection
Impact of protection on GWP
Impact of protectionist policies on different types of economies, such as high
income and developing economies
Question 28
Analyse the issues associated with Australia’s balance of payments trends
• Demonstrates a clear and concise understanding of the relationship
the issues associated with Australia’s balance of payments trends
• Integrates an extensive and appropriate range of economic terms with
relevant concepts, relationships and theory
• Synthesises economic data and other information to develop a sustained,
logical and well structured response
17-20
• Demonstrates an understanding of the issues associated with Australia’s
balance of payments trends
• Consistently applies appropriate economic terms, relevant concepts,
relationships and theory
• Uses economic data and other information to develop a logical and
structured response
13-16
• Provides some understanding of the issues associated with Australia’s
balance of payments trends
• Applies appropriate economic terms, concepts and relationships
• Uses some economic data and other information to develop a coherent
response
9-12
• Provides characteristics and features of the issues associated with
Australia’s balance of payments trends
• Uses some appropriate economic terms, concepts and relationships
• Uses some economic information to develop a generalised response
5-8
• Lists some factors affecting Australia’s balance of payments
• Uses some economic terms and/or concepts
• Presents a limited response
1-4
Answers could include:
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Definition of Australia’s balance of payments
Components of the BOP
Data and trends of various components of the CA and KAFA
Terms of trade
Size of the CAD and CAD as a % of GDP
Foreign debt
Foreign liabilities
International competitiveness
Structural change