HSC Economics Practice Essay Questions

HSC Topic 2: Australia’s Place in the Global Economy

This topic is more specific (and often more difficult) than the previous topic and asks the student to have an understanding of Australia’s place in the global economy, what our largest trading partners are, and what changes to the global economy can effect Australia.

Question 1

Using diagrams, explainhow movements in the Australian dollar can affect the performance of the Australian economy.

Question 2

Analysethe impact of the changes in the global economy on Australia’s Balance of Payments.

Question 3

Explainthe causes of Australia’s sustained Current Account Deficit (CAD) and explain the impacts of a high CAD on the Australian economy.

Question 4

Discussthe impact of changes in the domestic and global economy on Australia’s exchange rates and分析the causes of recent trends in Australia’s exchange rate with the global economy.

Question 5

Explainthe factors that influence Australia’s Balance of Payments.

HSC Topic 3: Economic Issues

This is perhaps my favourite of all the HSC Economics topics as it asks us to examine the nature, causes and consequences of the economic issues that are facing contemporary economies including; unemployment, inflation, distribution of income and wealth as well as sustainable development.

Question 1

Analysethe causes of unemployment and their effects on the Australian economy.

Question 2

Explainthe causes of inflation and the impacts of high inflation on the Australian economy.

Question 3

Discussthe consequences of an unequal distribution of income and wealth and the impact of fiscal policy on the distribution of income in Australia.

Question 4

Analysethe changing sources of economic growth and their effects on the Australian economy and business cycle.

Question 5

Examinethe economic issues associated with the goal of ecologically sustainable development.

HSC Topic 4: Economic Policies and Management

This topic looks at the aims and implementation of economic policies in the Australian economy and asks us to respond to hypothetical situations.

Question 1

Analysehow macroeconomic policy (i.e. Fiscal and Monetary Policy) can be used to achieve external stability.

Question 2

Explainthe method behind how a Government can finance a budget deficit.

Question 3

Evaluatethe rationale behind the Reserve Bank of Australia’s target inflation rate and解释why monetary policy suffers from a time lag limitation.

Question 4

Discussthe benefits and disadvantages of having a minimum wage and解释the national system for determining the minimum wage.

Question 5

Using diagrams, explainhow market-based policies can assign a price to a negative externality (e.g. pollution) and improve the quality of life through a paradoxical reduction in consumption.