Section III and IV – Exam Preparation
Extended Response Answers
How to Use this Guide
1. The Economics syllabus “students learn to examine economic issues”
statements are in the 1st column.
2. HSC Extended response questions from the years 2002-2013 are in the 2nd
column.
3. Notice the correlation between the syllabus economic issues and the
extended response questions.
4. Underneath each of the past HSC exam questions are the “marking
guidelines”, “notes from the marking centre” and the “sample answers”. All
of these documents will provide you with useful information on how to
answer the question – these are hyperlinked to the correct place. Please let
me know if the links take you to the wrong place so I can correct the error.
5. Please note – there are separate hyperlinks for the papers from 2010-2013
for the “marking guidelines”, “notes from the marking centre” and the
“sample answers”, however, the past HSC papers from 2002-2009 include
this in one document and therefore, there is only one hyperlink. Make sure
that you scroll through the entire document in this case.
6. A mapping grid can be found in the “marking guidelines” document which
shows you the link between Syllabus content and all examination questions
from all sections in the exams. A sample is pasted below. It clearly shows
that question 1 related to the dot point concerning trade agreements. You
can work out the rest.
I can’t provide any guarantees about what will be asked in the HSC or Trial, but it is
interesting to note that there are a few economic issues that haven’t been covered
in the HSC extended response questions in the last 12 years.
It should also be evident that there are certain economic issues which have been
questioned regularly.
Other than that, read the document and prepare yourself as best as you can. Work
smart not hard!
Topic 1 – The Global Economy
HSC 2012 – Question 27
For an economy other than Australia, discuss the effects of
globalisation on economic growth and the quality of life.
Marking Guidelines
Notes from the marking centre
Sample answers
HSC 2009 – Question 28
Analyse the impact of changes in the global economy on
Australia’s economic growth and external stability.
Marking guidelines
Notes from the marking centre
Sample answers
Examine the effects of
globalisation on
economic growth and
the quality of life, levels
of unemployment, rates
of inflation and external
stability.
HSC 2005 – Question 28
Outline the features of globalisation, and analyse the impact of
globalisation on the standard of living in the global economy.
Marking guidelines
Notes from the marking centre
Sample answers
HSC 2003 – Question 27
Explain the impact of globalisation on the economic performance
of EITHER the Australian economy OR and economy other than
Australia.
Marking guidelines
Notes from the marking centre
Sample answers
HSC 2002 – Question 27
Analyse the impact of changes in the global economy on
Australia’s current account and net foreign debt.
Marking guidelines
Notes from the marking centre
Sample answers
Assess the potential
impact on the
environment of
continuing world
economic development.
HSC 2006 – Question 28
Outline the arguments for ecologically sustainable development,
and discuss the likely impacts of an increase in the rate of
Australia’s economic growth on the environment.
Marking guidelines
Notes from the marking centre
Sample answers
HSC 2004 – Question 28
Discuss the impact of globalisation on one or more economies,
with reference to economic development and environmental
consequences.
Marking guidelines
Notes from the marking centre
Sample answers
HSC 2009 – Question 26
With reference to Australia and at least ONE other economy,
discuss the impact of globalisation on development and the
distribution of global wealth. In your answer, you should refer to
the economic information provided.
Marking guidelines
Notes from the marking centre
Sample answers
Investigate the global
distribution of income
and wealth.
HSC 2005 – Question 28
Outline the features of globalisation, and analyse the impact of
globalisation on the standard of living in the global economy.
Marking guidelines
Notes from the marking centre
Sample answers
HSC 2007 – Question 28
For an economy other than Australia, explain how government
development strategies have responded to the process of
globalisation.
Marking guidelines
Notes from the marking centre
Sample answers
HSC 2004 – Question 28
Discuss the impact of globalisation on one or more economies,
with reference to economic development and environmental
Assess the consequences consequences.
of an unequal
distribution of global
Marking guidelines
income and wealth.
Notes from the marking centre
Sample answers
HSC 2008 – Question 25
Discuss the influence of international organisations and
contemporary trading blocs and agreements in promoting
globalisation. In your answer, use the economic information
provided.
Marking guidelines
Notes from the marking centre
Sample answers
HSC 2006 – Question 25
Analyse the impact of reduced levels of protection on the global
economy.
Discuss the effects of
protectionist policies on
the global economy.
Marking guidelines
Notes from the marking centre
Sample answers
HSC 2002 – Question 28
Analyse the impact of protectionist policies on the domestic and
global economies.
Marking guidelines
Notes from the marking centre
Sample answers
HSC 2002 – Question 28
Analyse the impact of protectionist policies on the domestic and
global economies.
Marking guidelines
Notes from the marking centre
Sample answers
Topic 2 – Australia’s Place in the Global Economy
HSC 2011 – Question 28
Discuss the impact of changes in the domestic and global
economy on Australia’s exchange rate.
Assess the impact of
recent changes in the
global economy on
Australia’s trade and
financial flows.
Marking guidelines
Notes from the marking centre
Sample answers
HSC 2005 – Question 25
Examine the reasons for changes in the composition and
direction of Australia’s trade, and explain the impact of these
changes on structural change in Australia.
Marking guidelines
Notes from the marking centre
Sample answers
Examine the effects of
changes in trade and
financial flows on
Australia’s economic
performance.
HSC 2011 – Question 28
Discuss the impact of changes in the domestic and global
economy on Australia’s exchange rate.
Marking guidelines
Notes from the marking centre
Sample answers
HSC 2013 – Question 25
Explain how movements in the Australian dollar can affect the
performance of the Australian economy. In your response you
should refer to the economic information provided.
Marking guidelines
Notes from the marking centre
Analyse the effects of
changes in the value of
the Australian dollar on
the Australian economy.
HSC 2008 – Question 26
Discuss the effects of an appreciation of the Australian dollar on
Australia’s internal and external stability. In your answer, use the
economic information provided.
Marking guidelines
Notes from the marking centre
Sample answers
HSC 2006 – Question 27
Outline the causes of an increase in demand for the Australian
dollar, and discuss the impacts on the Australian economy of a
sustained appreciation of the Australian currency.
Marking guidelines
Notes from the marking centre
Sample answers
HSC 2004 – Question 25
Analyse the effects of changes in the exchange rate of the
Australian dollar (against other currencies) on the Australian
economy.
Marking guidelines
Notes from the marking centre
Sample answers
HSC 2013 – Question 27
Analyse the effects of domestic AND global free trade and
protection policies on the Australian economy.
Discuss the impacts of
free trade and
protection policies on
the quality of life in
Australia.
Marking guidelines
Notes from the marking centre
HSC 2010 – Question 28
Analyse the effects of protectionist trade policies on the
Australian economy.
Marking guidelines
Notes from the marking centre
Sample answers
Propose likely changes
to the structure of
industry within
Australia as a result of
current trends in the
global economy.
HSC 2012 – Question 26
Analyse the impact of changes in the global economy on the
structure of industry in the Australian economy. In your
response, you should refer to the economic information provided.
Marking Guidelines
Notes from the marking centre
Sample answers
Topic 3 – Economic Issues
Examine the arguments
for and against
increasing economic
growth rates.
HSC 2005 – Question 27
Outline the factors affecting Australia’s economic growth, and
analyse the relationship between economic growth and changes
in Australia’s unemployment rate.
Marking guidelines
Notes from the marking centre
Sample answers
HSC 2013 – Question 28
Analyse the causes of unemployment and its effect on the
Australian economy.
Investigate the economic
and social problems
created by
unemployment.
Marking guidelines
Notes from the marking centre
HSC 2003 – Question 25
In relation to the Australian economy, discuss the causes of
unemployment and the economic and social problems created by
unemployment.
Marking guidelines
Notes from the marking centre
Sample answers
Analyse the effects of
inflation on an economy.
HSC 2012 – Question 25
Analyse the impact of changes in the global economy on
Australia’s Balance of Payments. In your response, you should
refer to the economic information provided.
Discuss the effect of a
continued current
account deficit on an
economy.
Marking Guidelines
Notes from the marking centre
Sample answers
HSC 2010 – Question 27
Analyse the causes and effects of fluctuations in Australia’s
external stability.
Marking guidelines
Notes from the marking centre
Sample answers
HSC 2007 – Question 26
Discuss the economic implications for the Australian economy of
Australia’s continuing current account deficits.
Marking guidelines
Notes from the marking centre
Sample answers
HSC 2004 – Question 26
Analyse the causes of Australia’s on-going current account deficit
and its effect on external stability.
Marking guidelines
Notes from the marking centre
Sample answers
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.
Examine the economic
issues associated with
the goal of ecologically
sustainable
development.
HSC 2011 – Question 25
How does fiscal policy affect economic activity and income
distribution in the Australian economy? In your response you
should refer to the economic information provided below.
Marking guidelines
Notes from the marking centre
Sample answers
HSC 2010 – Question 26
Discuss the consequences for Australia of an unequal
distribution of income and wealth, and the policies that can be
used to address this issue. In your response, you should refer to
the economic information provided.
Marking guidelines
Notes from the marking centre
Sample answers
HSC 2010 – Question 25
Discuss the economic concerns that the Australian Government
takes into account when formulating policies to manage the
environment. In your response, you should refer to the economic
information provided.
Marking guidelines
Notes from the marking centre
Sample answers
HSC 2006 – Question 28
Outline the arguments for ecologically sustainable development,
and discuss the likely impacts of an increase in the rate of
Australia’s economic growth on the environment.
Marking guidelines
Notes from the marking centre
Sample answers
Topic 4 – Economic Policies and Management
HSC 2013 – Question 26
Explain the effects of Australia’s macroeconomic policy mix on
economic growth and inflation in the domestic economy. In your
response, you should refer to the economic information provided.
Marking guidelines
Notes from the marking centre
HSC 2012 – Question 28
Discuss the effectiveness of economic policies in achieving the
Australian government’s economic objectives.
Marking Guidelines
Notes from the marking centre
Sample answers
HSC 2009 – Question 27
Analyse the federal government’s macroeconomic policy mix to
address inflation and unemployment in the Australian economy.
Analyse the opportunity
cost of government
decisions in addressing
specific economic
problems or issues.
Marking guidelines
Notes from the marking centre
Sample answers
HSC 2008 – Question 27
Evaluate the effectiveness of fiscal policy in achieving Australia’s
economic objectives.
Marking guidelines
Notes from the marking centre
Sample answers
HSC 2008 – Question 28
Evaluate the effectiveness of monetary policy in achieving
Australia’s economic objectives.
Marking guidelines
Notes from the marking centre
Sample answers
HSC 2006 – Question 25
Analyse the impacts of macroeconomic and microeconomic
policies on the economic performance of the Australian economy.
Marking guidelines
Notes from the marking centre
Sample answers
HSC 2006 – Question 26
Analyse the impacts of macroeconomic and microeconomic
policies on the economic performance of the Australian economy.
Marking guidelines
Notes from the marking centre
Sample answers
HSC 2005 – Question 27
Outline the factors affecting Australia’s economic growth, and
analyse the relationship between economic growth and changes
in Australia’s unemployment rate.
Marking guidelines
Notes from the marking centre
Sample answers
HSC 2005 – Question 26
Examine the economic policies available to deal with inflation in
the Australian economy, and explain the limitations of these
policies.
Marking guidelines
Notes from the marking centre
Sample answers
HSC 2004 – Question 27
Discuss the effectiveness of Australia’s monetary and fiscal
policies in dealing with economic growth and inflation.
Marking guidelines
Notes from the marking centre
Sample answers
HSC 2011 – Question 27
Discuss the effects of microeconomic reform on product and
factor markets in the Australian economy.
Investigate structural
changes in the
Australian economy
resulting from
microeconomic policies.
Marking guidelines
Notes from the marking centre
Sample answers
HSC 2009 – Question 25
Discuss the impact of microeconomic policies on Australia’s
economic performance. In your answer you should refer to the
information provided.
Marking guidelines
Notes from the marking centre
Sample answers
HSC 2007 – Question 27
Explain how Australia’s labour market policies have affected
work practices and employment.
Marking guidelines
Notes from the marking centre
Sample answers
HSC 2005 – Question 25
Examine the reasons for changes in the composition and
direction of Australia’s trade, and explain the impact of these
changes on structural change in Australia.
Marking guidelines
Notes from the marking centre
Sample answers
HSC 2003 – Question 28
Explain how current labour market policies contribute to the
management of the Australian economy.
Marking guidelines
Notes from the marking centre
Sample answers
HSC 2002 – Question 25
Explain the role of microeconomic policies in assisting structural
change in the Australian economy.
HSC 2011 – Question 26
How does monetary policy affect inflation and unemployment in
the Australian economy? In your response you should refer to
the economic information provided below.
Apply economic theory
to explain how a
government could
address an economic
problem or issue in
hypothetical situations.
Marking guidelines
Notes from the marking centre
Sample answers
HSC 2008 – Question 27
Evaluate the effectiveness of fiscal policy in achieving Australia’s
economic objectives.
Marking guidelines
Notes from the marking centre
Sample answers
HSC 2008 – Question 28
Evaluate the effectiveness of monetary policy in achieving
Australia’s economic objectives.
Marking guidelines
Notes from the marking centre
Sample answers
HSC 2007 – Question 25
Discuss the impact of sustained fiscal surpluses on resource use
and economic activity in the Australian economy.
Marking guidelines
Notes from the marking centre
Sample answers
HSC 2005 – Question 26
Examine the economic policies available to deal with inflation in
the Australian economy, and explain the limitations of these
policies.
Marking guidelines
Notes from the marking centre
Sample answers
HSC 2003 – Question 26
Discuss the causes of inflation and the policies available to the
Australian Government to control the rate of inflation.
Marking guidelines
Notes from the marking centre
Sample answers
HSC 2002 – Question 26
Explain how the Federal Government can use fiscal policy to
promote economic growth, redistribute income and assist
external stability.
Marking guidelines
Notes from the marking centre
Sample answers
Analyse alternative ways
to finance a budget
deficit.