2013 HSC MID-YEAR 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
Outcomes Assessed
Targeted
Performance Bands
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
B
C
B
C
A
D
C
B
C
D
B
D
A
D
B
A
D
B
A
A
H1, H4
H1, H4
H1, H2, H4
H5, H11
H3
H2, H3, H11
H2
H1, H4, H11
H1, H6
H1
H1
H1, H2
H1, H7, H11
H6
H6, H7
H4, H7, H11
H1
H6, H7, H11
H1
H7
2-3
3-4
3-4
3-4
4-5
4-5
3-4
3-4
4-5
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.
MIDEC13_GUIDELINES
1
2013 HSC Mid-Year 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
Section II: 21 a
Short
21 b
Answer
21 c
22 a
22 b
22 c
22 d
23 a
23 b
23 c
23 d
Section
24
III:
Essay
25
MIDEC13_GUIDELINES
Marks
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
2
4
4
1
2
3
4
2
2
3
3
20
20
Syllabus/Course
Outcomes
H1, H4
H1, H4
H1, H2, H4
H5, H11
H3
H2, H3, H11
H2
H1, H4, H11
H1, H6
H1
H1
H1, H2
H1, H7, H11
H6
H6, H7
H4, H7, H11
H1
H6, H7, H11
H1
H7
H1
H3, H11
H11
H2
H1, H2
H1
H2, H7
H1, H2
H4
H2,H4, H7
H4, H6, H7
H1, H2, H4, H5,
H7, H8, H9, H10
H1, H2, H4, H5,
H7, H8, H9, H10
Targeted
Performance
Bands
2-3
3-4
3-4
3-4
4-5
4-5
3-4
3-4
4-5
4-5
3-4
3-4
3-4
2-3
2-3
3-4
3-4
4-5
3-4
3-4
2-3
3-4
4-5
2-3
2-3
4-5
4-5
3-4
3-4
4-5
3-4
3-4
Answer
B
C
B
C
A
D
C
B
C
D
B
D
A
D
B
A
D
B
A
A
3-4
2
Section II – 30 marks
Question 21
21(a) (2 marks)
Outcomes Assessed: H1
Targeted Performance Bands: 2-3



Criteria
Correctly identifies relevant characteristics of both a fixed exchange rate and
a flexible exchange rate
Correctly identifies relevant characteristics of either a fixed exchange rate or
a flexible exchange rate
OR
Identifies relevant characteristics of either a fixed exchange rate or a flexible
exchange rate in general or in specific terms
Marks
2
1
Fixed exchange rate: The price of a nation’s currency, as set by the government or central
bank.
Flexible exchange rate: The price of a nation’s currency, determined by the interactions of
supply and demand.
21(b) (4 marks)
Outcomes Assessed: H3, H11
Targeted Performance Bands: 3-4






Criteria
Clearly outlines TWO relevant reasons for an appreciation in an exchange
rate
Clearly outlines ONE relevant reason for an appreciation in an exchange rate
AND
Identifies ONE relevant reason for an appreciation in an exchange rate
Clearly outlines ONE relevant reason for an appreciation in an exchange rate
OR
Identifies TWO relevant reasons for an appreciation in an exchange rate
Identifies ONE relevant reason for an appreciation in an exchange rate
Marks
4
3
2
1
Relevant reasons could include:
- Increase in demand for exports (or a determining factor, linked directly to exports)
- Increased speculator confidence in the currency
- Increase in capital inflow (or a determining factor, linked directly to capital inflow)
MIDEC13_GUIDELINES
3
21(c) (4 marks)
Outcomes Assessed: H2
Targeted Performance Bands: 2-3






Criteria
Explains ONE economic cost and ONE economic benefit of maintaining a
flexible exchange rate
Identifies ONE economic cost or ONE economic benefit of maintaining a
flexible exchange rate
AND
Explains ONE economic cost or ONE economic benefit of maintaining a
flexible exchange rate
Identifies ONE economic cost and ONE economic benefit of maintaining a
flexible exchange rate
OR
Explains ONE economic cost or ONE economic benefit of maintaining a
flexible exchange rate
Identifies ONE economic cost or ONE economic benefit of maintaining a
flexible exchange rate
Marks
4
3
2
1
Economic costs can include:
- Volatility of exchange rate
- Lack of control by government/central bank
- Impact of fluctuations on domestic indicators
Economic benefits can include:
- Exchange rate represents true value of currency
- Adjustment of exchange rate can help stabilise the economy
- Central bank does not need to intervene in currency markets to maintain price
- Improved investor confidence
MIDEC13_GUIDELINES
4
Question 22
22(a) (1 mark)
Outcomes Assessed: H2
Targeted Performance Bands: 2-3

Criteria
Accurately defines gross world product as the value of goods and services
produced across the global economy in a given period
Mark
1
22(b) (2 marks)
Outcomes Assessed: H1, H2
Targeted Performance Bands: 2-3


Criteria
Describes one relevant factor that would cause an increase in GWP
Identifies one relevant factor that would cause an increase in GWP
Marks
2
1
Factors can include:

Improvement in global economic confidence

Increases in global trade

Increase in income in developing countries

Increased levels of global investment
22(c) (3 marks)
Outcomes Assessed: H1
Targeted Performance Bands: 4-5



Criteria
Clearly explains the economic links between countries in the global
economy
Identifies and describes characteristics of economic links between countries
in the global economy
Identifies a relevant economic link between countries in the global economy
Marks
3
2
1
Answers can include reference to issues such as:
- Contagion
- Investor confidence
- Capital flight
- Export demand
- Consumer confidence
- Commodity prices
- Protection
MIDEC13_GUIDELINES
5
22(d) (4 marks)
Outcomes Assessed: H2, H7
Targeted Performance Bands: 4-5




Criteria
Identifies and explains how specific actions of ONE relevant international
organisation has negative impacts on the global economy
Identifies and explains how actions of ONE relevant international
organisation has negative impacts on the global economy
(Note – may not refer to specific actions)
Provides a generalised discussion of the operations of ONE international
institution and identifies negative impacts on the global economy
Identifies a negative impact on the global economy caused by an
international organisation
Marks
4
3
2
1
Answers can include reference to organisations such as:
- UN
- WTO
- WB
- IMF
- G20
- G8
Question 23
23(a) (2 marks)
Outcomes Assessed: H1, H2
Targeted Performance Bands: 3-4



Criteria
Correctly identifies relevant characteristics of both net income and net
transfers
Correctly identifies relevant characteristics of either net income or net
transfers
OR
Identifies relevant characteristics of both net income and net transfers in
generalised or in specific terms
Marks
2
1
Net income: Inflows minus outflows of wages, interest, profits and rents between Australia
and other nations
Net Transfers: Movements of funds between Australians and other countries with no
expectation of anything in return
MIDEC13_GUIDELINES
6
23(b) (2 marks)
Outcomes Assessed: H4
Targeted Performance Bands: 3-4


Criteria
Describes how an increase in immigration will lead to an increase in
payments by recent migrants to families or communities in their countries of
origin, increasing transfer outflows (debits)
Identifies an increase in net outflows over time
Marks
2
1
23(c) (3 marks)
Outcomes Assessed: H2, H4, H7
Targeted Performance Bands: 4-5



Criteria
Identifies and details the impacts of increased consumer confidence on
factors that would cause a deterioration in the current account deficit
Describes, in general terms, limited impacts of increased consumer
confidence on factors that would cause a deterioration in the current account
deficit
Identifies a link between consumer confidence on factors and a deterioration
in the current account deficit
Marks
3
2
1
Factors can include:
- Import spending
- Borrowing behaviours
- Inflation (and impact on international competitiveness)
- Capital inflow
- Falling savings
23(d) (3 marks)
Outcomes Assessed: H4, H6, H7
Targeted Performance Bands: 3-4



Criteria
Demonstrates a comprehensive understanding of the relationships between
an increase in government borrowing, an increase in a public foreign debt,
an increase in servicing requirements, and an increased servicing outflow on
net income
Describes an accurate understanding of the relationships between an
increase in government borrowing, an increase in a foreign debt, an increase
in servicing requirements, and an increased servicing outflow on net income
Describes a link between an increase in foreign debt and an increase in
financial outflows over time
MIDEC13_GUIDELINES
Marks
3
2
1
7
Section III – 20 marks
Question 24
Outcomes Assessed: H1, H2, H4, H7, H8, H10
Targeted Performance Bands: 3-4
Criteria
 Extensive integration of relevant terms, concepts, relationships and
theories
 Synthesises own knowledge and understanding with information
provided to develop a sustained, logical and cohesive response
 Provides clear and comprehensive arguments identifying how
integration in the global economy affects direction and composition
of trade between nations
 Integrates relevant terms, concepts, relationships and theories
 Synthesises own knowledge and understanding with information
provided to develop a logical and cohesive response
 Provides sound arguments identifying how integration in the global
economy affects direction and composition of trade between nations
 Applies relevant terms, concepts, relationships and theories
 Uses own knowledge and understanding with information provided
to develop a coherent response
 Sketches in general terms arguments identifying how features of
globalisation affects direction and/or composition of trade between
nations
 Uses information provided to develop a generalized response
 Uses some relevant terms, concepts, relationships and theories
 States some aspects of how globalization may affect trade
 Presents a limited response
 Uses some economic terms and/or concepts
 Lists some issues associated with global trade
MIDEC13_GUIDELINES
Marks
17-20
13-16
9-12
5-8
1-4
8
Question 25
Outcomes Assessed: H1, H2, H4, H7, H8, H10
Targeted Performance Bands: 3-4
Criteria
 Extensive integration of relevant terms, concepts, relationships and
theories
 Synthesises own knowledge and understanding with information
provided to develop a sustained, logical and cohesive response
 Provides clear and comprehensive arguments identifying how changes
in the global economy affect indicators of Australia’s external stability
 Integrates relevant terms, concepts, relationships and theories
 Synthesises own knowledge and understanding with information
provided to develop a logical and cohesive response
 Provides sound arguments identifying how changes in the global
economy affect indicators of Australia’s external stability
 Applies relevant terms, concepts, relationships and theories
 Uses own knowledge and understanding with information provided to
develop a coherent response
 Sketches in general terms arguments identifying how changes in the
global economy may affect some indicators of Australia’s external
stability
 Uses information provided to develop a generalized response
 Uses some relevant terms, concepts, relationships and theories
 States some aspects of changes in global economic performance or
Australia’s external stability
 Presents a limited response
 Uses some economic terms and/or concepts
 Lists some issues associated Australia’s external indicators
MIDEC13_GUIDELINES
Marks
17-20
13-16
9-12
5-8
1-4
9