Here is an explanation to some of the curly m/c questions from the 2010 HSC exam paper. I thought that this might be helpful for others too.
Thanks Harry for raising these, he picked the difficult ones.
Q3. The calculate the CA balance:
(X-M)+net services+net income+net current transfers
If CA balance = -140 then CFA balance must be +140. ie answer B
Q7. Price of food has increased 10% or 0.1 and contributes to the CPI with a weighing of 0.3. So, food contributes to the CPI by 0.1×0.3=0.3
Health contributes 0.3×0.1=0.3
Housing contributes 0.25×0.15=0.357
Clothing contributes 0.2×0.2=0.4
Hence clothing would have the greatest contribution, answer D
Q12. k=1/(1-mpc); where mpc=change in consumption / change in income
In Yr 2 and in Yr 3 cons increased 100 and income increased (C+S) 200 hence mpc=100/200=0.5 therefore k=2
Q19. The Lorenz curve with the bigger “belly” indicates greater inequality and corresponds with larger Gini Coefficient.
In the diagram, wealth has a bigger belly than income and so has higher Gini coefficient and Inequality
Q16. In an economy experiencing a boom, govt would like to slow econ activity to maintain a lower, more sustainable rate of economic growth. A lower dollar would encourage more foreign investment and hence increasing demand for … Hmmm, dunno.
This is an example of a question that probably was intended to be difficult, but less obscure than it finished up. A long discussion at HSC marking centre did not lead to a common agreement about the best answer, or even if one existed. There was agreement that B was not right, but I still have difficulty explaining the answer, let alone understanding this one, either A or D. It also indicates that there is no point spending too long in a single mark question. A very small percentage of students across the state go this one right and the fact that the BOS accepted more than one response as correct also tells us something.
Keep going though