05 2009 Economics Semester 1 Sample Examinatio

05 2009 Economics Semester 1 Sample Examinatio - Economics...

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Economics Semester 1 Answers to Sample Examinations 2009
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UNSW Foundation Studies UNSW Global Pty Limited UNSW Sydney NSW 2052 Copyright © 2009 All rights reserved. Except under the conditions described in the Copyright Act 1968 of Australia and subsequent amendments, this publication may not be reproduced, in part or whole, without the permission of the copyright owner.
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UNSW Foundation Year Sample Semester Exam Answers 1 ECONOMICS SAMPLE SEMESTER EXAMS ANSWERS TO MULTIPLE CHOICE SAMPLE SEMESTER EXAM A 1. D 2. A 3. B 4. D 5. B 6. D 7. C 8. C 9. C 10. D 11. B 12. C 13. C 14. A 15. A 16. B 17. A 18. D 19. B 20. D SAMPLE SEMESTER EXAM B 1. D 2. D 3. C 4. A 5. A 6. B 7. D 8. C 9. B 10. D 11. D 12. B 13. B 14. C 15. C 16. C 17. B 18. D 19. B 20. C
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UNSW Foundation Year Sample Semester Exam Answers 2 MARKING DIRECTIONS SAMPLE SEMESTER EXAM A SECTION B QUESTION 21 (a) Distinguish between internal and external economies of scale. (5 marks) Students could approach their answer by explaining economies of scale and distinguishing between internal and external or by writing two complete definitions (one for internal and one for external).Either approach is acceptable. Award a maximum of 4 marks provided the explanations are both accurate and complete. A diagram could be part of this explanation. Responses should mention :-economies are the advantages of large scale production resulting in a falling long run A.T.C. Internal economies are due to a decision by the individual firm to increase output; external are due to factors outside the firm. Award an additional mark to students who provide any relevant extra information. This information could include well explained examples, reasons for internal and external economies, and or a diagram. (b) What factors influence the price elasticity of demand for a particular p r o d u c t ? ( 5 m a r k s ) As a guide, to earn full marks students would need 3-4 points with reasonable explanations. If students only list points without further discussion then award a maximum of 3 marks. These factors could include:- availability of close substitutes; necessity goods; luxury goods; price compared to total income; durability.
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UNSW Foundation Year Sample Semester Exam Answers 3 QUESTION 22 (a) Why do governments interfere in the free working of the price m e c h a n i s m ? ( 5 m a r k s ) Most students will answer the question by discussing the disadvantages of the price mechanism and suggesting that these disadvantages call for government interference. Possible points include:-income inequality; inequality of opportunity; demise of competition; market failure-externalities; market failure-no provision of public goods; instability; other. Students could also answer this question by referring to government objectives such
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05 2009 Economics Semester 1 Sample Examinatio - Economics...

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