Victorian Certiﬁcate of Education
SUPERVISOR TO ATTACH PROCESSING LABEL HERE
Thursday 31 October 2013
Reading time: 3.00 pm to 3.15 pm (15 minutes)
Writing time: 3.15 pm to 5.15 pm (2 hours)
QUESTION AND ANSWER BOOK
Structure of book
Number of questions
to be answered
• Students are permitted to bring into the examination room: pens, pencils, highlighters, erasers,
sharpeners and rulers.
• Students are NOT permitted to bring into the examination room: blank sheets of paper and/or white
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Marks will not be deducted for incorrect answers.
No marks will be given if more than one answer is completed for any question.
Which one of the following would have a different effect on the overall level of aggregate demand from that
of the other three?
A. an increase in savings
B. an increase in investment
C. an increase in net exports
D. an increase in government spending
The effect of an introduction of a carbon tax of $23 per tonne of CO2 emissions on the market for electricity
that is generated from burning coal would be to
A. shift the supply curve to the left and cause a contraction in supply.
B. shift the supply curve to the left and cause a contraction in demand.
C. shift the demand curve to the left and cause a contraction in supply.
D. shift the demand curve to the left and cause a contraction in demand.
Which one of the following policy decisions is likely to have a different effect on aggregate supply from that
of the other three?
A. an increase in the pension qualiﬁcation age from 65 to 70 years
B. the payment of a subsidy to parents to cover the cost of childcare
C. an increase in the minimum school leaving age from 15 to 17 years
D. relaxation of the criteria that need to be met in order to qualify as a skilled migrant to Australia
Which one of the following is not an example of an automatic stabiliser?
A. unemployment beneﬁts
B. social welfare payments
C. progressive income taxes
D. salaries paid to public servants
SECTION A – continued
2013 ECONOMICS EXAM
• the inﬂation rate is at a low level, well within the target range
• the rate of economic growth is slowing
• the unemployment rate is rising.
It is most likely that the Reserve Bank of Australia (RBA) will implement a monetary policy that would
A. buy government securities and lower the cash interest rate.
B. buy government securities and raise the cash interest rate.
C. sell government securities and lower the cash interest rate.
D. sell government securities and raise the cash interest rate.
In a given year, an increase in the trade-weighted index (TWI) is least likely to
A. distort income distribution in favour of Australian importing ﬁrms relative to Australian exporting ﬁrms.
B. assist with the lessening of cost pressures for Australian businesses.
C. result in greater leakages of spending out of the Australian economy.
D. contribute to an improvement in net external demand (X–M).
Which one of the following statements regarding Real Gross Domestic Product (GDP) is false?
A. Real GDP excludes the costs that are associated with negative externalities.
B. Real GDP imputes the value of government services that are provided free of charge.
C. Real GDP includes home-based production, such as do-it-yourself home maintenance.
D. Real GDP measures the change in the value of goods and services that are produced over a...