HSC Economics Exam Questions With Answers

HSC Economics Exam Questions With Answers Define globalisation The breaking down of geographical & artificial barriers over a period of time (between countries & economies) Explain/ Example: The reduction in protectionist policies e.g. tariffs, quotas and subsidies demonstrates an increased trade between nations Define, explain and give an example for the global economy Definition: consists of all production, trade & financial flows, investments, technology and economic behaviour between nations. Explanation: Economies are increasingly linked to each other, and because of this changes in individual economies can have a ripple effect on others. Example: Debt concerns in the European zone, specifically Greece have impacted Australia. Australia is seen as a "safe haven" to investors resulting in an appreciation in the AU$ Define, explain and give an example for Gross World Product Definition: Sum of the output of goods and services of all economies over a period of time Explanation: We also world GDP at PPP - GWP adjusted for national variation in prices + different exchange rates Example: Current GDP is around $US78 trillion (expected to increase) Define, explain and give an example for economic integration Definition: Refers to the liberalisation of trade between nations Explanations: Led to the formation of free trade areas, agreements and monetary unions Example: European Union (EU), Thailand-Australia Free Trade Agreement (TAFTA) Define and give an example of the international business cycle Definition: Refers to fluctuations in the level of economic activity in the global economy & global economic growth Example: Economic growth is generally stronger when the rest of the world is growing strongly. 2003-07 US,EU,Japan, Aus experienced long periods of growth before the 2008 GFC List the factors that strength the international business cycle - Trade flows - Investment flows - TNC'S - Financial flows - Financial market and confidence - Global interest rate levels - Commodity prices - International organisations List the factors that weaken the international business cycle - Domestic interest rates - Government fiscal policies - Exchange rates - Structural factors - Regional factors