2011 TRIAL HIGHER SCHOOL CERTIFICATE
EXAMINATION
ECONOMICS – MARKING GUIDELINES
The sample answers indicate features that should be found in a response that receives full marks.
For the extended response questions, a set of guidelines is included rather than a sample answer.
Section I
Part A – 20 marks
Questions 1-20 (1 mark each)
Question
Correct Response
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
B
D
D
B
A
B
B
C
B
C
C
A
B
C
B
D
A
B
B
C
Outcomes Assessed
H1, H4
H1, H4
H1, H4, H11
H7
H3
H2, H3, H6
H2, H5
H1, H4, H11
H1, H6
H1, H3
H1, H3
H1, H2
H1, H6
H6
H6, H7
H4, H7, H11
H1, H5
H6, H7
H1, H11
H7, H2
Targeted
Performance Bands
2-3
3-4
3-4
3-4
3-4
4-5
3-4
3-4
3-4
3-4
4-5
3-4
3-4
4-5
4-5
3-4
3-4
4-5
4-5
3-4
Disclaimer
Every effort has been made to prepare this Examination in accordance with the Board of Studies documents. No guarantee or warranty is made or
implied that the Examination paper mirrors in every respect the actual HSC Examination question paper in this course. This paper does not constitute
‘advice’ nor can it be construed as an authoritative interpretation of Board of Studies intentions. No liability for any reliance, use or purpose related to
this paper is taken. Advice on HSC examination issues is only to be obtained from the NSW Board of Studies. The publisher does not accept any
responsibility for accuracy of papers which have been modified.
ECOTR11_Guidelines
1
Section II – 40 marks
Question 21 (10 marks)
21 (a) (2 marks)
Outcomes Assessed: H1
Targeted Performance Bands: 2-3


Criteria
Correctly defines monetary policy as the use of changes in interest rates
(official cash rate) by the RBA to influence the level of economic activity in
the economy
Associates monetary policy with interest rates or the RBA
Marks
2
1
21 (b) (1 mark)
Outcomes Assessed: H3
Targeted Performance Bands: 2-3

Criteria
Identifies a loosening of monetary policy or expansionary policy
Mark
1
21 (c) (2 marks)
Outcomes Assessed: H2
Targeted Performance Bands: 4-5


Criteria
Describes an increase in liquidity in the cash market and a fall in interest
rates
Identifies a fall in interest rates
Marks
2
1
21 (d) (5 marks)
Outcomes Assessed: H4
Targeted Performance Bands: 4-5




Criteria
Provides a clear and concise explanation of the link between an appreciation
of the $A and more than one impact on the Australian economy,
demonstrating an explicit understanding of the implications on the stance of
monetary policy
Provides a clear explanation of the link between an appreciation of the $A
and more than one impact on the Australian economy, demonstrating an
understanding of the stance on monetary policy
Describes or sketches in general links between an appreciation of the $A and
the Australian economy that may influence interest rates
Identifies a link between the $A and interest rates
Marks
5
4
2-3
1
Impacts can include:
- decrease in the competitiveness of exports
- decrease in then cost of imports
- falling inbound tourism/increase in outbound tourism
- fall in imported inflation
- increasing capital outflows
- falling capital inflows
Explanation should recognise the pressure to loosen interest rates based on these factors.
ECOTR11_Guidelines
2
Question 22 (10 marks)
22 (a) (2 marks)
Outcomes Assessed: H1, H11
Targeted Performance Bands: 3-4



Criteria
Correctly calculates the CAD as $680billion (-$680) and includes
appropriate working
Correctly calculates the CAD as $680billion (-$680)
OR
includes elements of appropriate working
Marks
2
1
22 (b) (2 marks)
Outcomes Assessed: H1, H3
Targeted Performance Bands: 3-4


Criteria
Identifies TWO relevant service debits
Identifies ONE relevant service debit
Marks
2
1
Service debits can include:

Outbound tourism

Transport delivered by overseas providers

Education from overseas providers

International banking or financial services delivered by overseas providers

International business services delivered by overseas providers
22 (c) (2 marks)
Outcomes Assessed: H1, H2, H7
Targeted Performance Bands: 4-5


Criteria
Describes the characteristics of one relevant structural factor
Identifies one relevant structural factor
ECOTR11_Guidelines
Marks
2
1
3
22 (d) (4 marks)
Outcomes Assessed: H2, H5
Targeted Performance Bands: 4-5
Criteria
 Clearly explains the link between two specific policies and a short-term
improvement in the current account deficit
 Clearly explains the link between a specific policy and a short-term
improvement in the current account deficit
AND
 Identifies or sketches one relevant domestic economic indicator or policy in
general terms
 Clearly explains the link between a specific policy and a short-term
improvement in the current account deficit
OR
 Identifies or sketches two relevant economic policies or policies in general
terms
 Identifies or sketches a relevant economic policy or policies in general terms
Marks
4
3
2
1
Answers can include:

Increase in interest rates

Increase in protection

Contractionary fiscal policy

Export assistance policies
Question 23 (10 marks)
23 (a) (2 marks)
Outcomes Assessed: H1
Targeted Performance Bands: 2-3


Criteria
Accurately defines ecologically sustainable development
Identifies characteristics of ecologically sustainable development in
incomplete or general terms
Marks
2
1
Sample answer:
Ecologically sustainable development refers to the promotion of a level of economic growth
that does not compromise the access of future generations to renewable and non-renewable
resources.
ECOTR11_Guidelines
4
23(b) (3 marks)
Outcomes Assessed: H2, H7
Targeted Performance Bands: 3-4
Criteria
Demonstrates how the depletion of non-renewable resources is a negative
consequence of the operation of the price mechanism
Describes how the depletion of non-renewable resources is considered to be
a market failure in general terms
Identifies characteristics of non-renewable resources and/or market failure



-
Marks
3
2
1
The depletion of non-renewable resources, (such as fossil fuels, natural landscapes) is
a consequence of the production of goods and services, and is detrimental to the wellbeing of future generations. This is a negative impact of the operation of the price
mechanism and hence, market failure. The price mechanism does not incorporate the
social costs of environmental problems.
23 (c) (5 marks)
Outcomes Assessed: H4, H6, H7
Targeted Performance Bands: 4-5



Criteria
Clearly explains the links the imposition of taxes to reduce a negative
externality and BOTH specific positive and negative impacts on the
economy
Identifies or sketches positive and negative effects of a tax on a negative
externality on the economy in general terms
Clearly explains a positive or negative effect of a tax on a negative
externality on the economy
OR
 Identifies or sketches TWO relevant impacts of taxation on the environment
in general terms
 Identifies or sketches one relevant impact of taxation on the environment in
general terms
Marks
4-5
3
2
1
Answers can include:
- Increases in costs to consumers
- Falling demand for goods and services
- Reduction in output of pollution/negative externalities
- Incentives to develop non-polluting production methods
- Inflation (cost push)
- Worsening income inequality
- Decline of some industries
- Structural unemployment
- Govt spending on assistance packages
ECOTR11_Guidelines
5
Question 24 (10 marks)
24 (a) (2 marks)
Outcomes Assessed: H2
Targeted Performance Bands: 3-4


Criteria
Accurately defines protection as any government policy that seeks to
provide an artificial advantage to domestic producers over foreign
competition
Identifies characteristics of protection in incomplete or general terms
Marks
2
1
24 (b) (1 mark)
Outcomes Assessed: H2, H4
Targeted Performance Bands: 4-5
Criteria

(Q2-Q1) to (Q4-Q3)
Mark
1
24 (c) (3 marks)
Outcomes Assessed: H6, H7
Targeted Performance Bands: 4-5



Criteria
Explains the link between a reduction in protection and a long-term benefit
Describes a long term benefit of a reduction in protection in general or
incomplete terms
Identifies a benefit of reductions in protection
Marks
3
2
1
Benefits can include:
- Incentives to increase productivity
- Exposure to international best practice production methods
- Incentive to introduce new technologies
- Better allocation of resources
- Increase in international competitiveness
- Reduced dependency on government support
24 (d) (4 marks)
Outcomes Assessed: H6, H7
Targeted Performance Bands: 3-4
Criteria
 Explains an impact on both direction and composition of trade
 Explains an impact on either direction or composition of trade
AND
 Identifies an impact on either direction or composition of trade
 Identifies two impacts on aspects of trade
 Identifies an impact on an aspect of trade
ECOTR11_Guidelines
Marks
4
3
2
1
6
Section III – 20 marks
Question 25 (20 marks)
Outcomes Assessed: H1, H2, H4, H5, H7, H8, H9, H10
Targeted Performance Bands: 3-4
Criteria
 Integrates an extensive and appropriate range of economic terms with
relevant concepts, relationships, theories and use of economic data
 Demonstrates superior economic analysis in a sustained, logical and wellstructured response
 Provides a clear, comprehensive and balanced discussion of the nature of
changes in fiscal policy and its impacts on the economy over time
 Integrates an appropriate range of economic terms, relevant concepts,
relationships, theory and use of economic data
 Demonstrates sound economic analysis in a logical and well structured
response
 Provides a sound understanding of the nature of changes in fiscal policy and
its impacts on the economy over time
 Applies appropriate economic terms, concepts and relationships
 Develops a coherent response
 Describes in general terms the nature of changes in fiscal policy and its
impacts on the economy over time
 Uses some appropriate economic terms, concepts and relationships
 Develops a generalised response
 Sketches in general terms the nature of changes in fiscal policy and its
impacts on the economy over time
 Presents a limited response
 Uses some economic terms and/or concepts that relate to fiscal policy
ECOTR11_Guidelines
Marks
17-20
13-16
9-12
5-8
1-4
7
Question 26 (20 marks)
Outcomes Assessed: H1, H2, H4, H5, H7, H8, H9, H10
Targeted Performance Bands: 3-4
Criteria
 Integrates an extensive and appropriate range of economic terms with relevant
concepts, relationships, theories and use of economic data
 Demonstrates superior economic analysis in a sustained, logical and well-structured
response
 Provides a clear, comprehensive and balanced discussion of the nature of structural
change and its impacts on the economy in both the long and the short term
 Integrates an appropriate range of economic terms, relevant concepts, relationships,
theory and use of economic data
 Demonstrates sound economic analysis in a logical and well structured response
 Provides a sound understanding of the nature of structural change and its impacts on
the economy in both the long and the short term
OR
 Provides a clear, comprehensive and balanced discussion of the nature of structural
change and its impacts on the economy in EITHER the long OR the short term
 Applies appropriate economic terms, concepts and relationships
 Develops a coherent response
 Describes in general terms the nature structural change and its impacts in the
economy
 Uses some appropriate economic terms, concepts and relationships
 Develops a generalised response
 Sketches in general terms the nature of structural change and some possible impacts
 Presents a limited response
 Uses some economic terms and/or concepts that relate to structural change
ECOTR11_Guidelines
Marks
17-20
13-16
9-12
5-8
1-4
8
Section IV
Question 27 (20 marks)
Outcomes Assessed: H1, H2, H4, H7, H8, H10
Targeted Performance Bands: 3-4
Criteria
 Integrates an extensive and appropriate range of economic terms with relevant
concepts, relationships, theories and use of economic data
 Demonstrates superior economic analysis in a sustained, logical and wellstructured response
 Provides a clear, comprehensive and balanced discussion of the nature of
international trade agreements and their impacts on the performance of
developing economies
 Integrates an appropriate range of economic terms, relevant concepts,
relationships, theory and use of economic data
 Demonstrates sound economic analysis in a logical and well structured response
 Provides a sound understanding of the nature of international trade agreements
and their impacts on the performance of developing economies
 Applies appropriate economic terms, concepts and relationships
 Develops a coherent response
 Describes in general terms the characteristics of trade agreements and outlines
impacts on developing economies
 Uses some appropriate economic terms, concepts and relationships
 Develops a generalised response
 Sketches in general terms the nature of trade agreements or effects on developing
economies
 Presents a limited response
 Uses some economic terms and/or concepts that relate to trade agreements
ECOTR11_Guidelines
Marks
17-20
13-16
9-12
5-8
1-4
9
Question 28 (20 marks)
Outcomes Assessed: H1, H2, H4, H7, H8, H10
Targeted Performance Bands: 3-4
Criteria
 Integrates an extensive and appropriate range of economic terms with relevant
concepts, relationships, theories and use of economic data
 Demonstrates superior economic analysis in a sustained, logical and wellstructured response
 Provides a clear, comprehensive and balanced discussion of the nature of global
trade flows and their impacts on the components of Australia’s external stability
 Integrates an appropriate range of economic terms, relevant concepts,
relationships, theory and use of economic data
 Demonstrates sound economic analysis in a logical and well structured response
 Provides a sound understanding of the nature of global trade flows and their
impacts on the components of Australia’s external stability
 Applies appropriate economic terms, concepts and relationships
 Develops a coherent response
 Describes in general terms the characteristics of global trade flows and their
impacts on some components of Australia’s external stability
 Uses some appropriate economic terms, concepts and relationships
 Develops a generalised response
 Sketches in general terms the nature of global trade flows or aspects of
Australia’s external stability
 Presents a limited response
 Uses some economic terms and/or concepts that relate to global trade or
Australia’s external stability
ECOTR11_Guidelines
Marks
17-20
13-16
9-12
5-8
1-4
10
2011 Half-Yearly HSC Examination Mapping Grid
Economics
Exam Section
Question
Section I
Multiple
Choice
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21 a
21 b
21 c
21 d
22 a
22 b
22 c
22 d
23 a
23 b
23 c
24a
24b
24c
24d
25
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
2
1
2
5
2
2
2
4
2
3
5
2
1
3
4
20
26
20
27
20
28
20
Section II
Short Answer
Section III
Essay
Section IV
Essay
ECOTR11_Guidelines
Marks
Syllabus/Course
Outcomes
H1, H4
H1, H4
H1, H4, H11
H7
H3
H2, H3, H6
H2, H5
H1, H4, H11
H1, H6
H1, H3
H1, H3
H1, H2
H1, H6
H6
H6, H7
H4, H7, H11
H1, H5
H6, H7
H1, H11
H7, H2
H1
H3
H2
H4
H1, H11
H1, H3
H1, H2, H7
H2, H5
H1
H2, H7
H4, H6, H7
H2
H2, H4
H6, H7
H6, H7
H1, H2, H4, H5, H7,
H8, H9, H10
H1, H2, H4, H5, H7,
H8, H9, H10
H1, H2, H4, H7, H8,
H10
H1, H2, H4, H7, H8,
H10
Targeted
Performance
Bands
2-3
3-4
3-4
3-4
3-4
4-5
3-4
3-4
3-4
3-4
4-5
3-4
3-4
4-5
4-5
3-4
3-4
4-5
4-5
3-4
2-3
2-3
4-5
4-5
3-4
3-4
4-5
4-5
2-3
3-4
4-5
3-4
4-5
4-5
3-4
3-4
Answer
B
D
D
B
A
B
B
C
B
C
C
A
B
C
B
D
A
B
B
C
3-4
3-4
3-4
11