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  1. Introductory concepts
  2. Market mechanism
  3. Elasticities  
  4. Market structures
  5. Market failures
  6. Macro activity/eco growth
  7. Inflation
  8. Employment & unemployment
  9. External Stability
  10. Income distribution
  11. Factors affecting economy
  12. Fiscal/Budgetary policy
  13. Monetary Policy
  14. Aggregate Supply Policies
  15. The Policy Mix
  16. Course revision


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 Course notes quick navigation

1 Introductory concepts 2  Market mechanism  3 Elasticities  4 Market structures 5  Market failures  6  Macro economic activity/eco growth  7 Inflation 8  Employment & unemployment  9  External Stability  10  Income distribution 11.Factors affecting economy  12  Fiscal/Budgetary policy  13  Monetary Policy   14 Aggregate Supply Policies  15 The Policy Mix

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How you are marked

The maximum score for each question is 100%. For every hint used, your percentage score is reduced by the ratio of that letter to the total letters required in the answer. For example, if the total number of letters within the gaps is 50 across the whole response, then each letter is worth 2 percentage points. Each hint will therefore reduce your score by 2 percentage points.

11. Explain how lower infrastructure investment in China might contribute to lower iron ore prices in a country like Australia. (3 marks)

13. Explain how a merger of two large iron ore producers could impact on Iron ore prices and quantities (4 marks)

12. Referring to 'relative prices', outline how the fall in the price of iron ore is likely to affect the allocation of labour resources (3 marks)

16. Explain how government financial support to affected businesses and households during the recovery (or reconstruction) phase of a natural disaster (e.g. a flood or cyclone) is likely to affect the market for tradesmen, such as builders, electricians and plumbers. (3 marks)

14. Discuss how floods can impact on the market for agricultural products like bananas, sweet potatoes, sugar or cotton. (3 marks)

15. Explain how floods may cause a change in relative prices and discuss how this causes a re-allocation of resources. (4 marks)

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17. Ethanol is a bio-fuel that primarily uses sugar and starch crops which are produced by farmers. Over recent years, some governments made laws to force petrol retailers to raise the percentage of ethanol in fuel production. Explain how a government's decision to mandate the use of ethanol in fuel is likely to affect the allocation of resources. (3 marks)

18. Explain how a government's decision to mandate the use of ethanol in fuel is likely to affect the market for some foodstuffs. (3 marks)