HSC ECONOMICS EXAMINATION
TECHNIQUE IN 2012
TIM RILEY
Director
Economic Literacy Centre
and
Tim Riley Publications Pty Ltd
UBS SYDNEY MORNING HERALD HSC ECONOMICS DAY
Tuesday 5th June 2012
Wesley Conference Centre
HSC Economics Examination Technique in 2012
1
1. The Economics Syllabus and Course Outcomes
The Economics Stage 6 Syllabus (1999) was amended in 2009 and implemented in the
Preliminary course in 2010 and the HSC course in 2011. The first HSC examination
based on the amended HSC course was in 2011. The main areas of change in the
Preliminary and HSC courses were making the syllabus more contemporary and
current; inconsistencies were removed; and wording was adjusted to achieve greater
clarity. The Higher School Certificate (HSC) Economics Examination in NSW is set
by the HSC Economics Examination Committee on behalf of the Board of Studies.
Students should be familiar with the structure of the Economic Syllabus as the
Economics Examination Committee examines the content and skills that students are
assumed to have learnt in the syllabus in the HSC examination. Students should
have the syllabus outline for each HSC topic and make a checklist of terms and
concepts that could be examined in the HSC Economics Examination. The syllabus
can be read and downloaded at the Board of Studies website at:
www.boardofstudies.nsw.edu.au.
The topics in the Preliminary and HSC
courses are listed below.
The Preliminary Course (120 hours of indicative time) – six compulsory topics:
1.
2.
3.
4.
5.
6.
Introduction to Economics
Consumers and Business
Markets
Labour Markets
Financial Markets
Government and the Economy
10%
10%
20%
20%
20%
20%
of
of
of
of
of
of
course
course
course
course
course
course
time
time
time
time
time
time
12 indicative hours
12 indicative hours
24 indicative hours
24 indicative hours
24 indicative hours
24 indicative hours
The HSC Course (120 hours of indicative time) – four compulsory topics:
1.
2.
3.
4.
The Global Economy
Australia’s Place in the
Global Economy
Economic Issues
Economic Policies
and Management
25% of course time
25% of course time
30 indicative hours
30 indicative hours
25% of course time
25% of course time
30 indicative hours
30 indicative hours
Within each HSC topic there are designated objectives in three broad categories:
•
Knowledge and understanding about the behaviour of individuals, firms,
institutions and governments; the operation of markets; the operation and
management of economies; and contemporary economic problems and
issues facing individuals, firms and governments.
•
Skills to investigate and engage in effective analysis, synthesis and evaluation
of economic information from a variety of sources; and to communicate
economic information, ideas and issues in appropriate forms.
•
Values and attitudes about informed participation in economic debate and
decision making; and responsible approaches towards people, societies and
environments.
HSC Economics Examination Technique in 2012
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The HSC Course Outcomes are H1 to H12 in the syllabus:
H1
H2
H3
H4
H5
H6
H7
H8
H9
H10
H11
H12
Demonstrates an understanding of economic terms, concepts and
relationships;
Analyses the economic role of individuals, firms, institutions and
governments;
Explains the role of markets within the global economy;
Analyses the impact of global markets on the Australian and global
economies;
Discusses policy options for dealing with problems and issues in
contemporary and hypothetical contexts;
Analyses the impact of economic policies in theoretical and contemporary
Australian contexts;
Evaluates the consequences of contemporary economic problems and issues
on individuals, firms and governments;
Applies appropriate terminology, concepts and theories in contemporary and
hypothetical economic contexts;
Selects and organises information from a variety of sources for relevance and
reliability;
Communicates economic information, ideas and issues in appropriate forms;
Applies mathematical concepts in economic contexts; and
Works independently and in groups to achieve appropriate goals in set time
lines.
2. The HSC Course Content: Knowledge and Skills Outcomes for each Topic
In each of the four HSC course topics there are outcomes for the content students
are expected to learn, and outcomes for the economic skills that students are
expected to demonstrate. These knowledge and skills outcomes are listed below for
each of the four topics in the HSC course.
Topic 1: The Global Economy
(i)
Students should learn to examine the following economic issues:
•
•
•
•
Examine the effects of globalisation on economic growth and the quality of life, levels
of unemployment, rates of inflation and external stability;
Assess the potential impact on the environment of continuing world economic
development;
Investigate the global distribution of income and wealth;
Assess the consequences of an unequal distribution of global income and wealth; and
Discuss the effects of protectionist policies on the global economy.
(ii)
Students should learn to apply the following economic skills:
•
Analyse statistics on trade and financial flows to determine the nature and extent of
global interdependence;
Assess the impact on the global economy of international organisations and
contemporary trading bloc agreements; and
Evaluate the impact of development strategies used in a range of contemporary and
hypothetical situations.
•
•
•
HSC Economics Examination Technique in 2012
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Topic 2: Australia’s Place in the Global Economy
(i)
Students should learn to examine the following economic issues:
•
Assess the impact of recent changes in the global economy on Australia’s
trade and financial flows;
Examine the effects of changes in trade and financial flows on Australia’s
economic performance;
Analyse the effects of changes in the value of the Australian dollar on the
Australian economy;
Discuss the impact of free trade and protection policies on the quality of life in
Australia; and
Propose likely changes to the structure of industry within Australia as a result of current
trends in the global economy.
•
•
•
•
(ii)
Students should learn to apply the following economic skills:
•
•
Calculate the main components of Australia’s balance of payments;
Analyse the relationship between the balance of the capital and financial
account and the net income balance;
Explain the relationship between the current account balance and the balance of the
capital and financial account;
Use supply and demand diagrams to explain how the value of a currency is
determined under different exchange rate systems; and
Analyse the impact of changes in the components of the balance of payments on the
value of the Australian dollar.
•
•
•
Topic 3: Economic Issues
(i)
Students should learn to examine the following economic issues:
•
•
•
•
•
Examine the arguments for and against increasing economic growth rates;
Investigate the economic and social problems created by unemployment;
Analyse the effects of inflation on an economy;
Discuss the effect of a continued current account deficit on an economy;
Investigate recent trends in the distribution of income in Australia and identify the impact
of specific economic policies on this distribution;
Analyse the economic and social costs of inequality in the distribution of income; and
Examine the economic issues associated with the goal of ecologically sustainable
development.
•
•
(ii) Students should learn to apply the following economic skills:
•
•
•
•
•
•
•
•
Identify and analyse problems facing contemporary and hypothetical economies;
Calculate an equilibrium position for an economy using leakages and injections;
Determine the impact of the simple multiplier effect on national income;
Explain the implications of the multiplier for fluctuations in the level of economic activity;
Calculate the unemployment rate and the participation rate using labourforce statistics;
Interpret a Lorenz Curve and a Gini co-efficient for the distribution of income in an
economy;
Use economic concepts to analyse a contemporary environmental issue; and
Assess the key problems and issues facing the Australian economy.
HSC Economics Examination Technique in 2012
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Topic 4: Economic Policies and Management
(i)
Students should learn to examine the following economic issues:
•
Analyse the opportunity cost of government decisions in addressing specific economic
problems or issues;
Investigate structural changes in the Australian economy resulting from microeconomic
policies;
Apply economic theory to explain how a government could address an economic
problem or issue in hypothetical situations; and
Propose and evaluate alternative policies to address an economic problem in
hypothetical and contemporary Australian contexts.
•
•
•
(ii)
•
•
•
•
•
•
•
•
Students should learn to apply the following economic skills:
Explain how governments are restricted in their ability to simultaneously achieve
economic objectives;
Use (simple) multiplier analysis to explain how governments can solve economic
problems;
Analyse alternative ways to finance a budget deficit and their impact on the economy;
Identify limitations of the effectiveness of economic policies;
Explain the impact of key economic policies on an economy;
Propose and evaluate alternative policies to address an economic problem in
hypothetical and contemporary Australian contexts;
Explain, using economic theory, the general effects of macroeconomic and
microeconomic policies on an economy; and
Select an appropriate policy mix to address a specific economic problem.
3. Key Competencies and Key Issues
Key competencies are said to be embedded in the Economics Stage 6 syllabus to
enhance student learning experiences. The six key competencies in the Economics
syllabus are the following:
(i)
(ii)
(iii)
(iv)
(v)
(vi)
Collecting, analysing and organising information;
Communicating ideas and information;
Using mathematical ideas and techniques;
Working with others and in teams;
Solving problems; and
Using technology.
A key feature of the Economics Syllabus is the ‘Problems and Issues’ approach to the
teaching and learning of economics, with the goal of relating the content of
economics to the economic problems and issues experienced by individuals and
society. The six key economic issues include the following:
1.
2.
3.
4.
5.
6.
Economic growth and the quality of life;
Unemployment;
Inflation;
External stability;
The distribution of income; and
Environmental sustainability.
HSC Economics Examination Technique in 2012
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4. HSC Economics Examination Paper Specifications
The HSC Economics Examination tests students’ knowledge, understanding and
skills based on the individual outcomes for each topic in the HSC Course. The time
allowed for the written examination is three hours plus five minutes of reading time.
Board of Studies approved calculators may be used in the examination. The HSC
Examination specifications and assessment requirements for economics are set out in
the table below.
Section 1
Marks
20 Objective response questions (multiple choice questions)
20
Section II
4 Short answer questions
40
(questions may be in parts and approximately 12 items in total)
Section III
•
Two stimulus based extended response questions
20
•
Students answer one question with an expected length of response
of around six examination writing booklet pages (approximately 800 words)
Section IV
•
Two extended response questions
20
•
Students answer one question with an expected length of response of
around six examination writing booklet pages (approximately 800 words)
Students should use the reading time to select ONE essay from Section III (two
stimulus based extended response questions, either question 25 or question 26) and
ONE essay from Section IV (two extended response questions, either question 27 or
question 28). Students are also advised to read the FOUR structured short answer
questions in Section II as they are compulsory. Students are advised to complete the
examination questions in the right order i.e. Section 1 first, then Sections II, III and
IV. The structure of the HSC Economics Examination paper is as follows:
Section I: Twenty Multiple Choice Questions (20 marks)
Allow a maximum of 35 minutes but most students complete this section in 10 to 15
minutes.
Questions 1 – 20 test multiple choice skills based on the four HSC topics and all
questions are compulsory and of equal value. Some questions may be based on
stimulus material (such as diagrams and tables of data) and all answers are to be
recorded on the multiple choice answer sheet. Marks are NOT deducted for
incorrect answers. It is important to score highly in Section 1 (i.e. 16+ out of 20) in
order to have the opportunity to achieve a high examination mark overall. Based
on past examination papers multiple choice questions in economics tend to test five
major skills:
1.
Definitions of basic concepts, e.g. globalisation, structural unemployment,
fiscal policy, monetary policy, cost inflation, the MPC, the effect of a tariff,
public good, enterprise bargaining and so on.
2.
Economics calculations, e.g. the rates of economic growth, inflation and
unemployment, real GDP, the terms of trade, marginal rates of taxation; the
simple multiplier and the components of the balance of payments.
HSC Economics Examination Technique in 2012
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3.
The interpretation of diagrams, statistics and economic models e.g. tariffs,
quotas, subsidies, exchange rates, aggregate demand and supply, the Lorenz
Curve and Gini co-efficient.
4.
The application of economic analysis to current economic issues e.g. the
impact of changes in the stance of monetary and fiscal policies on economic
activity.
5.
The use of logical reasoning skills e.g. the effects of changes in macroeconomic
policy settings or the exchange rate on economic activity.
Sample Questions from the 2011 HSC Economics Examination
1.
Which of the following policies would be most likely to reduce an economy’s
non-accelerating inflation rate of unemployment (NAIRU)?
(A)
(B)
(C)
(D)
Expansionary fiscal policy
Contractionary monetary policy
Policies that increase factor market competition
Policies that decrease product market competition
2.
The table shows selected data for an economy.
Component
$ billion ($bn)
Government spending
Investment
Saving
Exports
Taxation
Imports
30
25
30
30
20
35
Which of the following is true for this economy?
(A)
(B)
(C)
(D)
The economy is contracting.
Injections exceed withdrawals.
Withdrawals exceed injections.
The economy is in equilibrium.
3.
The table shows data for a nation’s terms of trade.
Year
1
2
Export Price Index
110
105
Import Price Index
100
100
All other things being equal, which of the following policy actions is most likely to
reduce the economic impact of the change in the nation’s terms of trade?
(A)
(B)
(C)
(D)
The Reserve Bank increases interest rates.
The Government increases income tax rates.
The Government increases discretionary expenditure.
The Reserve Bank intervenes to increase the value of the currency.
HSC Economics Examination Technique in 2012
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4.
The graph shows the demand for and supply of Australian dollars.
$A in terms
of $US
S1
S0
0.70
0.60
D
0
Q1
Quantity of $A
Q0
Which of the following is the most likely reason for the shift in the supply curve
from S0 to S1 ?
(A)
(B)
(C)
(D)
An increase in foreign imports into Australia
An increase in foreign financial investment in Australia
A reduction in the net income deficit on the current account
A decline in the international competitiveness of Australian firms
5.
The following graph shows the effect of a tariff on the price and quantity of
imported shirts.
Assume that the world price of shirts is $10 and that the tariff is $5 per shirt.
Price
S
$15
$10
D
0
100
200
300
400
Quantity
By what amount does the revenue of foreign producers shirts decrease as a result of
the tariff?
(A)
(B)
(C)
(D)
$500
$1000
$1500
$2000
HSC Economics Examination Technique in 2012
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Selected Skills Outcomes and Formulae for Calculations
•
Analyse statistics on trade and financial flows
•
Calculate the main components of Australia’s balance of payments
Current Account Balance = Goods Balance + Net Services + Net Primary + Net Secondary
Income
Income
Capital and Financial Account Balance = Capital Account Balance + Financial Account Balance
Balance of Payments = Current Account Balance + Capital and Financial Account Balance + NEO
Terms of Trade
•
=
Export Price Index
Import Price Index
x
100
1
Calculate an equilibrium position for an economy using leakages and injections
S+T+M=I+G+X
AD = C + I + G = (X - M)
•
Determine the impact of the simple multiplier effect (k) on national income (Y)
∆Y
∆I
=
•
Explain the implications of the multiplier for fluctuations in the level of economic activity
∆Y
=
•
Calculate the unemployment rate and the participation rate using labourforce statistics
x
or
1
MPS
k
k
=
1
1 - MPC
∆I
Unemployment Rate
=
Unemployed
Labourforce
Labourforce
=
Full time Employed + Part Time Employed + Unemployed
Participation Rate
=
Labourforce
Working Age Population
Real GDP
=
Nominal GDP
1
Inflation Rate
=
Current CPI - Previous CPI
Previous CPI
•
x
x
100
1
x
100
1
100
CPI
x
100
1
Interpret a Lorenz Curve and a Gini co-efficient for the distribution of income in an
economy
HSC Economics Examination Technique in 2012
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Economic Statistics and Data
It is important to prepare for Economics examinations by learning and
remembering some basic data that can be used in answering short answer questions
but especially for integration into extended response answers.
Data can be used to support an argument about the theory that helps to explain or
analyse current global and domestic economic conditions and is therefore an
important part of the work of a professional economist.
It is best to use annual data because it gives a better indication of long term trends in
economic variables which reflect changes in economic activity or the business cycle.
As long as the data quoted is reasonably accurate it does not matter if you do not
quote the most up to date data. The following are the basic economic statistics that
relate to the four topics in the HSC Course. These statistics have been taken from
the Budget Forecasts for 2012-13:
Selected Budget Forecasts for the Australian Economy 2010-11 to 2012-13 (f)
Economic Indicator
Outcomes
2010-11
(Year Av.)
Forecasts
2011-12
(Year Av.)
Real Gross Domestic Product (%∆)
Consumer Price Index (%∆)
Wage Price Index (%∆)
Employment Growth (%∆)
Unemployment Rate (% of workforce)
Participation Rate (% of workforce)
Terms of Trade (%∆)
Current Account Balance (% GDP)
Exports of goods and services (%∆)
Imports of goods and services (%∆)
2.00
3.60
3.80
2.20
4.90
65.50
20.60
-2.40
0.20
10.4
3.00
1.25
3.50
0.50
5.25
65.25
3.25
-3.00
4.00
12.5
Fiscal balance ($b)
Underlying cash balance ($b)
-51.5
-47.7
-42.0
-44.4
Source: Commonwealth of Australia (2012), Budget Strategy and Outlook 2012-13.
Cash Rate (May 22nd 2012)
Exchange Rate (May 22nd 2012)
3.75%
US$0.98 = A$1.00
Selected Budget Forecasts for World Growth 2010-11 to 2011-12 (f)
World GDP Growth
USA GDP Growth
Euro Area GDP Growth
Japan GDP Growth
China GDP Growth
India GDP Growth
3.9%
1.7%
1.5%
-0.7%
9.2%
7.3%
HSC Economics Examination Technique in 2012
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3.5%
2.0%
-0.75%
2.25%
8.25%
6.25%
Forecast
2012-13
2.5
1.5
Section II: Four Short Answer Questions (40 marks)
Allow a maximum of 72 minutes; but most students complete this section in 40 to 50
minutes.
Questions 21 to 24 test short answer skills such as the interpretation and analysis of
statistics relating to key concepts in the four compulsory topics in the HSC course.
All questions are of equal value (i.e. four 10 mark questions) and are divided into
parts, with marks allocated according to the degree of difficulty of the question.
Most (but not all) of the short answer questions are based on stimulus material (e.g.
an economic diagram, extract of text or data from a relevant source such as Budget
Statements or the Reserve Bank of Australia Bulletin). The short answer questions
may involve a calculation and the use of a student’s knowledge of economics in
applying, interpreting, analysing or explaining an economic concept, term, issue,
model, policy or principle. Answers have to be recorded in the spaces provided in
the examination paper. Students should provide adequate detail in relation to the
allocation of marks, which tend to reflect the progression from low order to higher
order thinking skills. Students should show all working if a calculation is involved.
The economic concepts, issues and theory examined in the 2011 HSC Examination
were as follows:
Q21
Outline the role of the World Trade Organisation (2); Explain one
disadvantage of bilateral trade agreements (3); For an economy other than
Australia, analyse the strategies used by the government in response to the
international business cycle (5)
Q22
Calculate the change in the current account balance from Year 1 to Year 2 (2);
Outline one factor that may have caused the change in the Net Income
component of the current account (2); Outline one factor that may have
caused the change in the Imports component of the current account (2); Why
does Australia have a persistently high current account deficit? (4)
Q23
Calculate the participation rate for this economy (1); What is the difference
between an award and an enterprise agreement? (2); Explain how ONE labour
market policy may influence the level of structural unemployment (3);
Explain the advantages of a decentralised system of wage determination on
the level of economic activity (4)
Q24
Define a public good (2); How may market failure affect the preservation of
the natural environment? (3); How can regulations and market-based policies
be used to manage the natural environment? (5)
Students are advised to practise the calculation of inflation and unemployment rates,
and the rate of economic growth from hypothetical data; how to interpret economic
trends from the business cycle; and how to apply their knowledge of economic
policy to address specific economic problems or issues.
Students should also revise the interpretation of economic data, models and
diagrams as these are used frequently in short answer questions that ask for
students to carry out calculations, interpretation and economic analysis.
HSC Economics Examination Technique in 2012
11
Sample Question from the 2011 HSC Economics Examination
Marks
Question 23 (10 marks)
(a)
The table shows employment data for a hypothetical economy.
1
(Millions)
Employed persons
Unemployed persons
Working age population
Total population
9.5
0.5
15.0
22.0
Calculate the participation rate for this economy.
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------(b)
What is the difference between an award and an enterprise agreement?
2
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------(c)
Explain how ONE labour market policy may influence the level of
structural unemployment
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------HSC Economics Examination Technique in 2012
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3
(d)
Explain the advantages of a decentralised system of wage determination
on the level of economic activity.
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
HSC Economics Examination Technique in 2012
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5
Section III: One Extended Response Question based on stimulus
(maximum of 20 marks)
Allow a minimum of 35 minutes; but most students complete this section in 50 to 60
minutes.
Questions 25 and 26 test essay writing (extended response) skills where students are
asked to apply and communicate their knowledge to a specific question based on
stimulus material. Students must choose from either Question 25 or 26 and write
their answer in a writing booklet. The questions in Section III can be in a one or two
sentence format. This requires careful planning so that the essay is structured into
parts in a logical sequence. The other important feature of questions in Section III is
the use of operative words such as ‘discuss’, ‘examine’, ‘analyse’, ‘evaluate’, ‘explain’,
‘assess’ and ‘contrast’. Words such as ‘How’, ‘What’ and ‘Why’ can also be used.
Note that in the 2011 HSC Economics Examination the word ‘How’ was used in
Questions 24, 25 and 26, the word ‘What’ was used in Question 23 and ‘Why’ in
Question 22. The Notes from the Marking Centre emphasised that words such as
what, how and why can be used as well as the words in the glossary of key terms.
Students should also be familiar with the rubric (i.e. instructions) used at the top of
the page to present or introduce the questions in Section III:
In your answer you will be assessed on how well you:
•
•
•
•
Demonstrate knowledge and understanding relevant to the question
Use the information provided
Apply relevant economic terms, concepts, relationships and theory
Present a sustained, logical and cohesive response
Possible areas of examination in Section III (and Section IV) include content from the
four HSC topics of The Global Economy, Australia’s Place in the Global Economy,
Economic Issues and Economic Policies and Management. Some of the main
guidelines that students might follow in planning and writing an extended response
answer to a question from Section III include the following:
•
Learn to incorporate the rubric skills in your answer;
•
Practise planning as many one and two sentence questions as possible;
•
Refer to the plan as you write the answer to the extended response question;
•
Refer to the stimulus material in your answer;
•
Demonstrate an understanding of the integrated nature of questions such as
the relationship between an economic problem or issue and possible
government economic policy responses (the ‘across topic’ question);
•
Learn the list of operative terms published by the Board of Studies; and
•
Practise the interpretation of stimulus material, especially quotations of text,
economic statistics, graphs or diagrams.
HSC Economics Examination Technique in 2012
14
Glossary of Key Words or Operative Terms
In economics all of these key words may be used but ‘discuss’, ‘analyse’, ‘explain’ and
‘evaluate’ are commonly used in extended response questions.
Analyse:
Assess:
Calculate:
Compare:
Contrast:
Define:
Demonstrate:
Describe:
Discuss:
Distinguish:
Evaluate:
Examine:
Explain:
Identify:
Interpret:
Outline:
Propose:
Recommend:
State:
Synthesise:
Identify components and the relationship between them; draw out and relate
implications
Make a judgement of value, quality, outcomes, results or size
Ascertain/determine from given facts
Show how things are similar or different
Show how things are different or opposite
State the meaning and identify essential qualities
Show by example
Provide characteristics and features
Identify issues and provide points for and/or against
Recognise or note/indicate as being distinct or different from; to note
differences between
Make a judgement based on criteria; determine the value of
Inquire into
Relate cause and effect; make the relationships between things evident;
provide why and/or how
Recognise and name
Draw meaning from
Sketch in general terms; indicate the main features of
Put forward (for example, a point of view, idea, argument or suggestion) for
consideration or action
Provide reasons in favour of
Write down the term or word for
Putting together various elements to make a whole
Section IV: One Extended Response Question not based on stimulus
(maximum of 20 marks)
Allow a minimum of 35 minutes; but most students complete this section in 50 to 60
minutes.
Questions 27 and 28 are two extended response questions but are not based on
stimulus material as in Section III. Students must answer one of the two questions in
a separate writing booklet and the same rules for interpreting, planning and writing
the essay answer apply as in Section III. Extended response questions in Section IV
can come from any of the four topic areas of The Global Economy, Australia’s Place
in the Global Economy, Economic Issues and Economic Policies and Management.
Students should also be familiar with the rubric (i.e. instructions) used at the top of
the page to present or introduce the questions in Section IV:
In your answer you will be assessed on how well you:
•
Demonstrate knowledge and understanding relevant to the question
•
Apply relevant economic information, terms, concepts, relationships
and theory
•
Present a sustained, logical and cohesive response
HSC Economics Examination Technique in 2012
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The operative word used in Section IV questions in the 2011 HSC examination was
‘discuss’ and both questions were in a one sentence format. ‘Discuss’ means to
identify issues and provide points for and/or against. Other terms used in previous
HSC examinations have been ‘Analyse’ and ‘Evaluate’.
Analyse means to identify components and draw out the relationship between these
components such as “Analyse the causes and effects of fluctuations in Australia’s
external stability” (2010 HSC). ‘Evaluate’ means to make a judgement about an issue
or policy by referring to specific criteria such as “Evaluate the effectiveness of
monetary policy in achieving Australia’s economic objectives” (2008 HSC).
Students should study the interrelationships between the four HSC topics (such as
the use of monetary, fiscal, microeconomic and labour market policies to address
issues such as economic growth, inflation and unemployment) in preparing to
answer questions in Section III and Section IV of the HSC Economics examination.
Sample Question 28 from the 2011 HSC Economics Examination
Question 28 (20 marks)
“Discuss the impact of changes in the domestic and global economy on Australia’s
exchange rate.”
Introduction
Define key terms such as exchange rate and the domestic and global economy and
identify the changes in the domestic and global economy which can impact on
Australia’s exchange rate.
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
HSC Economics Examination Technique in 2012
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Body
Present sustained arguments using examples and data to identify the main changes
in the domestic and global economy which can impact on Australia’s exchange rate.
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
Conclusion
Use of concluding statements that reveal the findings of your essay or extended
response such as the main changes in the domestic and global economy that can
impact on Australia's exchange rate.
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
HSC Economics Examination Technique in 2012
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5. HSC Economics Marking
The short answers and extended responses are marked according to criteria
developed by the examination committee for the HSC markers. Whilst these criteria
are well defined there is some tolerance shown in accepting a variety of student
answers, although these are in well defined limits.
Students should be aiming to achieve Band 5 or Band 6 answers in the extended
response section of the paper which is worth 40% of total marks. Extended
responses in economics are marked out of 20 according to a criteria based marking
system known as Marking Guidelines. Marking criteria are developed to describe
student performance in each of the six bands of performance, starting from the
lowest bands (Bands 1 and 2) and proceeding to the highest bands (Bands 5 and 6).
The descriptors of student achievement in Band 6 are as follows:
Band 6 - Criteria
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17-20 Marks
Integrates economic terms, concepts, relationships and theory in a variety of
economic contexts
Displays superior analysis of the role of economic participants and markets in a
variety of economic contexts
Uses extensive economic vocabulary and illustrative examples in exposition of
problems and policies in a variety of contexts
Demonstrates critical judgement and sound reasoning to select, organise,
synthesise and evaluate relevant information from a variety of sources
Presents excellent explanation and evaluation of the impact of government
economic policies in contemporary and hypothetical economic contexts
Presents comprehensive application of appropriate mathematical concepts in
a variety of economic contexts
Produces comprehensive economic arguments to evaluate the consequences
of economic problems and issues on economic participants
Student Resources
Aside from using textbooks, study guides, teachers’ notes, newsletter and
newspaper articles and research materials from the Internet, students are
encouraged to also use resources developed by the Board of Studies which are
found on its website at www.boardofstudies.nsw.edu.au:
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Assessment and Reporting in Economics
The Economics Stage 6 Syllabus and Amendments
Copies of past HSC Economics Examination papers
Notes from the Marking Centre and Marking Guidelines
HSC Economics Examination Rubrics
NSW HSC Online for information on each topic in the HSC Economics course
Performance Band Descriptions
Practising past questions is the best way of preparing yourself for the Trial HSC and
HSC examinations, in addition to making summaries of key knowledge and skills
outcomes for each of the four topics in economics.
HSC Economics Examination Technique in 2012
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