2011 HSC Economics Marking Guidelines

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1 0 HSC Economics Marking Guidelines Section I Multiple-choice Answer Key Question Answer C A C 4 D 5 A 6 B 7 C 8 A 9 D 0 C B D C 4 B 5 B 6 B 7 D 8 D 9 B 0 C

2 0 HSC Economics Marking Guidelines Section II Question (a) Sketches in general terms the role of the World Trade Organisation Demonstrates a limited understanding of the World Trade Organisation Question (b) Identifies a disadvantage of a bilateral trade agreement and provides a sound reason why it is a disadvantage Sketches in general terms ONE disadvantage of bilateral trade agreements Demonstrates a limited understanding of bilateral trade agreements Question (c) Clearly demonstrates a thorough understanding of relevant government strategies and their relationship to the international business cycle in an 5 economy other than Australia Demonstrates a sound understanding of relevant government strategies and their relationship to the international business cycle in an economy 4 other than Australia Demonstrates some understanding of relevant government strategies used in an economy other than Australia, with some reference to the international business cycle Sketches in general terms government strategies used in an economy other than Australia, with some reference to the international business cycle States any government strategy used in an economy other than Australia Question (a) (i) Correctly states the change in the value of the current account balance from Year to Year Correctly states the change in the direction of the current account balance Correctly states the value of the current account balance

3 0 HSC Economics Marking Guidelines Question (a) (ii) Sketches in general terms ONE factor that may have caused an increase in the Net Income component of the current account Correctly states that the Net Income component increased Demonstrates a limited understanding of ONE cause of a change in the Net Income component of the current account Question (a) (iii) Sketches in general terms ONE factor that may have caused an increase in the Imports component of the current account Correctly states that Imports increased Demonstrates a limited understanding of ONE cause of a change in Imports Question (b) Demonstrates a clear understanding of the reasons for Australia s persistently high current account deficit Demonstrates a sound understanding of the reason for Australia s persistently high current account deficit Sketches in general terms some understanding of the reasons for Australia s persistently high current account deficit States an aspect of why Australia has a persistently high current account deficit 4 Question (a) Correctly states the participation rate for this economy

4 0 HSC Economics Marking Guidelines Question (b) Clearly recognises the difference between an award and an enterprise agreement States meaning of either an award an enterprise agreement Demonstrates limited understanding of an award and an enterprise agreement Question (c) Demonstrates a clear and thorough understanding of how ONE labour market policy may influence the level of structural unemployment Sketches in general terms how ONE labour market policy may influence the level of structural unemployment States ONE labour market policy that may influence the level of structural unemployment Question (d) Demonstrates a clear understanding of the advantages of a decentralised 4 system of wage determination on the level of economic activity Demonstrates a sound understanding of the advantages of a decentralised system of wage determination on the level of economic activity Sketches in general terms the advantages of a decentralised system of wage determination Demonstrates a sound understanding of ONE advantage of a decentralised system of wage determination on the level of economic activity States an advantage of a decentralised system of wage determination Question 4 (a) Correctly states the meaning of a public good Demonstrates a limited understanding of the meaning of a public good 4

5 0 HSC Economics Marking Guidelines Question 4 (b) Demonstrates a sound understanding of how market failure may affect the preservation of the natural environment Sketches in general terms how market failure may affect the preservation of the natural environment Demonstrates a limited understanding of market failure and/or its effects on the preservation of the natural environment States any feature of market failure or its effects on the preservation of the natural environment Question 4 (c) Clearly demonstrates a thorough understanding of how regulations and market-based policies can be used to manage the environment Clearly demonstrates a sound understanding of how regulations and market-based policies can be used to manage the environment Clearly demonstrates a thorough understanding of how EITHER regulations market-based policies can be used to manage the environment and the other is a sound understanding Demonstrates a sound understanding of how regulations and market-based policies can be used to manage the environment Demonstrates a thorough understanding of how EITHER regulations market-based policies can be used to manage the environment Sketches in general terms how regulations and market-based policies can be used to manage the environment Demonstrates a sound understanding of EITHER regulations market-based policies can be used to manage the environment Lists any regulations and/or market-based policies that can be used to manage the environment 5 4 5

6 0 HSC Economics Marking Guidelines Section III Question 5 Synthesises own knowledge and understanding with information provided to develop a sustained, logical and cohesive response Extensive integration of relevant economic terms, concepts, relationships and theory Provides clear and comprehensive arguments identifying how fiscal policy affects economic activity and income distribution in the Australian economy Synthesises own knowledge and understanding with information provided to develop a logical and cohesive response Integrates relevant economic terms, concepts, relationships and theory Provides sound arguments identifying how fiscal policy affects economic activity and income distribution in the Australian economy Clearly and comprehensively identifies how fiscal policy affects EITHER economic activity income distribution in the Australian economy and sketches in general terms arguments for the other Uses own knowledge and understanding with information provided to develop a coherent response Applies economic terms, concepts and relationships Sketches in general terms how fiscal policy affects economic activity and income distribution in the Australian economy Provides sound arguments identifying how fiscal policy affects EITHER economic activity income distribution in the Australian economy Uses information to develop a generalised response Uses some economic terms, concepts and relationships States some aspects of how fiscal policy affects economic activity and income distribution in the Australian economy Sketches in general terms how fiscal policy affects EITHER economic activity income distribution in the Australian economy Presents a limited response Uses some economic terms and/or concepts List any affects of fiscal policy on EITHER economic activity income distribution in the Australian economy

7 0 HSC Economics Marking Guidelines Question 6 Synthesises own knowledge and understanding with information provided to develop a sustained, logical and cohesive response Extensive integration of relevant economic terms, concepts, relationships and theory Provides clear and comprehensive arguments identifying how monetary policy affects inflation and unemployment in the Australian economy Synthesises own knowledge and understanding with information provided to develop a logical and cohesive response Integrates relevant economic terms, concepts, relationships and theory Provides sound arguments identifying how monetary policy affects inflation and unemployment in the Australian economy Clearly and comprehensively identifies how monetary policy affects EITHER inflation unemployment in the Australian economy and sketches in general terms arguments for the other Uses own knowledge and understanding with information provided to develop a coherent response Applies economic terms, concepts and relationships Sketches in general terms how monetary policy affects inflation and unemployment in the Australian economy Provides sound arguments identifying how monetary policy affects EITHER inflation unemployment in the Australian economy Uses information to develop a generalised response Uses some economic terms, concepts and relationships States some aspects of how monetary policy affects inflation and unemployment in the Australian economy Sketches in general terms how monetary policy affects EITHER inflation unemployment in the Australian economy Presents a limited response Uses some economic terms and/or concepts List any effects of monetary policy on EITHER inflation AND/ unemployment in the Australian economy

8 0 HSC Economics Marking Guidelines Section IV Question 7 Extensive integration of relevant economic terms, concepts, relationships and theories Provides comprehensive economic information in a sustained, logical and cohesive response Provides clear and comprehensive arguments identifying points for and/or against how microeconomic reform affects product and factor markets in the Australian economy Integrates relevant economic terms, concepts, relationships and theories Provides sound economic information in a logical and cohesive response Provides sound arguments identifying points for and/or against how microeconomic reform affects product and factor markets in the Australian economy Clearly and comprehensively identifies points for and/or against how microeconomic reform affects EITHER product factor markets in the Australian economy and sketches in general terms arguments for the other Applies economic terms, concepts and relationships Develops a coherent response Sketches in general terms points for and/or against how microeconomic reform affects product and factor markets Provides sound arguments identifying points for and/or against how microeconomic reform affects EITHER product factor markets Uses some economic terms, concepts and relationships Develops a generalised response States some aspects of microeconomic reform and the effect on product markets and factor markets Sketches in general terms points for and/or against how microeconomic reform affects EITHER product factor markets Use some economic terms and/or concepts Presents a limited response Lists any microeconomic reforms and/or effect on EITHER product factor markets

9 0 HSC Economics Marking Guidelines Question 8 Extensive integration of relevant economic terms, concepts, relationships and theories Provides comprehensive economic information in a sustained, logical and cohesive response Provides clear and comprehensive arguments identifying points for and/or against how changes in the domestic and global economy impact on Australia s exchange rate Integrates relevant economic terms, concepts, relationships and theories Provides sound economic information in a logical and cohesive response Provides sound arguments identifying points for and/or against how changes in the domestic and global economy impact on Australia s exchange rate Clearly and comprehensively identifies points for and/or against how changes in EITHER the domestic economy global economy impacts on Australia s exchange rate and sketches in general terms arguments for the other Applies economic terms, concepts and relationships Develops a coherent response Sketches in general terms points for and/or against how changes in the domestic and global economy impacts on Australia s exchange rate Provides sound arguments identifying points for and/or against how changes in EITHER the domestic global economy impact on Australia s exchange rate Uses some economic terms, concepts and relationships Develops a generalised response States some aspects of domestic and global economy and the impacts on Australia s exchange rates Sketches in general terms points for and/or against how changes in EITHER the domestic global economy impacts on Australia s exchange rate Provides arguments for the impact of changes in the Australian exchange rate on the domestic and/or global economy

10 0 HSC Economics Marking Guidelines Use some economic terms and/or concepts Presents a limited response Lists any effects of the domestic and/or global economy on Australia s exchange rate Lists any effects on the global and/or domestic economy of changes in the Australian exchange rate 4 0

11 Section I Economics 0 HSC Examination Mapping Grid Question Content Syllabus outcomes Section II Topic Globalisation H, H4 Topic 4 Income inequality policy H, H5 Topics and 4 Government policy and unemployment H, H5 4 Topic Economic growth H, H 5 Topic Aggregate supply H, H 6 Topic Australia s trade H, H4 7 Topic External stability (TOT) H, H 8 Topic Inflation H 9 Topic Income distribution (Gini) H, H7 0 Topic Exchange rates H, H4 Topic External stability H Topic 4 Government policy H, H6 Topic Multiplier H, H 4 Topic Balance of payments H, H7 5 Topic Balance of payments H, H 6 Topic 4 Government policy H, H6 7 Topic Protection H, H 8 Topic Economic development H 9 Topic 4 Fiscal Policy H, H6 0 Topic Environmental sustainability H, H7 Question Content Syllabus outcomes (a) Topic WTO H (b) Topic Trade agreements H, H (c) 5 Topic Case study H, H, H4, H5, H8, H0 (a) (i) Topic Current account H, H (a) (ii) Topic Net income H, H4 (a) (iii) Topic Imports H, H4 (b) 4 Topic External stability H, H4 (a) Topic Employment H, H (b) Topic 4 Labour policy H, H (c) Topic 4 Labour policy H, H, H5, H7 (d) 4 Topic 4 Labour policy H, H, H5, H7, H0 4 (a) Topic Public good H 4 (b) Topic Market failure H, H, H7 4 (c) 5 Topic 4 Environmental management H, H, H5, H7, H0

12 0 HSC Economics Mapping Grid Section III Question Content Syllabus outcomes 5 0 Topic Economic issues; Fiscal policy income distribution/economic activity H, H, H6, H9, H0 Topic 4 Economic policies 6 0 Topic Economic issues; Monetary policy, inflation/unemployment H, H, H6, H9, H0 Topic 4 Economic policies and management Section IV Question Content Syllabus outcomes 7 0 Topic 4 Economic policies and management: Microeconomic reform H, H, H6, H0 8 0 Topic The Global economy Topic Australia s place in the Global economy: Exchange rates H, H, H4, H8, H0

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