Economics 2019 v1.

1
IA1 sample assessment instrument
October 2018

Examination — combination response (25%)

This sample has been compiled by the QCAA to assist and support teachers in planning and
developing assessment instruments for individual school settings.

Assessment objectives
This assessment instrument is used to determine student achievement in the following
objectives:
1. comprehend economic concepts, principles and models of exchange rates, international
trade patterns and trade theories
3. analyse an economic issue that involves exchange rates, trade patterns and/or trade
theories
4. evaluate an economic outcome relevant to exchange rates, trade patterns and/or trade
theories.
Note: Objectives 2 and 5 are not assessed in this instrument.

172065
 Subject Economics Instrument no. IA1

Technique Examination — combination response

Unit 3: International economics

Topic 1: The global economy

Conditions

Response Written response

type

Time 2 hours Planning 15 minutes

time

Other • Length:
- multiple-choice items
- short-response items — 50–100 words
- extended-response item — 400–500 words
- examination in its entirety — 800–1000 words.
• Documents provided in examination:
- test paper
- stimulus (two A4 sheets, single-sided).
• Rulers free from markings other than measurement indicators are permitted.
• Non-programmable calculator permitted.

Instructions

• Answer all questions in the space provided on the test paper.

Criterion Marks allocated Result

Part A — Comprehending
10
Assessment objective 1

Part B — Analysing
8
Assessment objective 3

Part B — Evaluating
7
Assessment objective 4

Total 25

Economics 2019 v1.1 Queensland Curriculum & Assessment Authority

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 Part A: Comprehending (multiple choice)
Circle one of either A, B, C or D, representing the most correct answer.

Question 1

Which of the following measures the terms of trade for an economy?

A the ratio of export income to import expenditure

B the prices of exports compared to the prices of imports
C the prices of exports compared to the volume of exports
D the difference between export income and import expenditure

Question 2

In the circular flow of income model, an export of Australian iron ore to Japan and an investment in Japan
by BHP Billiton Limited would

A both increase the circular flow of income

B both decrease the circular flow of income
C increase the flow in the case of the iron ore export and decrease the flow in the case of the
BHP investment

D decrease the flow in the case of the iron ore export and increase the flow in the case of the
BHP investment

Question 3

Refer to the following table. Which country has a comparative advantage in the production of bread?

Bread Machines

Country A 8 9

Country B 15 10

Total 23 19

A Country A
B Country B
C both Country A and Country B
D neither Country A nor Country B

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 Question 4

The Australian government needs to monitor external stability at the moment because

A non-residents are buying existing and new Australian housing, driving up house prices and increasing
Australian inflation and exchange rates to above the target level

B the current account deficit is becoming smaller, due to falling exchange rates and selling greater
volumes of commodities, which is not sustainable

C there is an increasing risk of imported inflation due to the differential between Australia’s inflation rate
and the rates of our major trading partners

D the financial debt of the external account is growing over time, due in part to the mining boom, and is
not sustainable in the long term

Question 5

An appreciation of the Australian dollar will most likely result from

A foreign companies purchasing more Australian commodities

B foreign companies purchasing fewer Australian wool products
C an increase in interest payments to overseas residents
D a decrease in interest payments from overseas residents

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 Part A: Comprehending (short response)
Answer in the space provided.

Question 1 (50 words)

Describe how natural endowment of factors of production influences Australian trade with either
China or Japan. Use two specific examples in your response.

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Question 2 (50 words)

Tourism exports in Australia increased by 7.6 percent to $37,200m. Draw and annotate a demand and
supply diagram to show the impact on Australian hospitality employment.

Diagram

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 Question 3 (100 words)

A country producing steel products has been accused of dumping these products in Australia.
Explain the economic problem of dumping and solutions available through global institutions.

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Economics 2019 v1.1 Queensland Curriculum & Assessment Authority

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 Question 4 (100 words)

Explain the importance of port infrastructure to resource allocation and patterns of trade.
Use an example of a current export from or import to one Queensland economic region.

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 Question 5 (100 words)

How has a specific region in China used competitive advantage to increase international trade?
Focus your response on economic theory involving related and supported industries.

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 Question 6 (80 words)

Use the graph below to answer the following two sub-questions.

Reserve Bank of Australia 2018, ‘Balance of payments and external position’, Chart pack,
www.rba.gov.au/chart-pack/balance-payments.html.

a) Calculate the change in the values of resources and manufacturing exports

from 2008 to 2018. Show your working to support your calculations.

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 b) Explain the impact of the change in the value of manufacturing exports over the last
10 years. Describe a current government initiative relevant to manufacturing exports.

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 Part B: Analysing and evaluating (extended response)
Answer in the space provided.

Question 1 (400–500 words)

Use Sources 1–6 to analyse trends between Australia’s exchange rates and trade patterns. Evaluate the
costs and benefits of the change in trade patterns for economic growth in Australia.

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 Part B continued

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 Part B continued

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 Additional paper for answers if required
You must identify question numbers clearly.

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 Instrument-specific marking guide (ISMG)
Criterion: Part A — Comprehending
Assessment objective
1. comprehend economic concepts, principles and models of exchange rates, international
trade patterns and trade theories

The student work has the following characteristics: Marks

• accurate and detailed identification of the essential features of exchange rates,

international trade patterns and trade theories
• perceptive application of economic concepts, principles and models to exchange rates, 9−10
international trade patterns and trade theories
• precise use of economic terminology.

• effective identification of the essential features of exchange rates, international trade

patterns and trade theories
• effective application of economic concepts, principles and models to exchange rates, 7−8
trade patterns and trade theories
• effective use of economic terminology.

• adequate identification of the features of exchange rates, international trade patterns and
trade theories
• adequate application of economic concepts, principles and models to exchange rates, 5−6
international trade patterns and trade theories
• adequate use of economic terminology.

• partial identification of the features of exchange rates, international trade patterns and
international trade theories
• partial application of economic concepts, principles and/or models to exchange rates, 3−4
international trade patterns and trade theories
• narrow use of economic terminology.

• identification of aspects of exchange rates, international trade patterns and/or trade

theories
1−2
• identification of aspects of economic concepts, principles or models
• inconsistent or unclear use of terminology.

• does not satisfy any of the descriptors above. 0

Economics 2019 v1.1 Queensland Curriculum & Assessment Authority

IA1 sample assessment instrument October 2018
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 Criterion: Part B — Analysing
Assessment objective
3. analyse an economic issue that involves exchange rates, trade patterns and/or trade theories

The student work has the following characteristics: Marks

• discerning interpretation of patterns and trends in exchange rates and/or trade data and
economic information
• discerning explanation of economic relationships involving exchange rates and/or 7−8
Australia’s place in the global economy
• perceptive use of data and economic information to support the analysis.

• effective interpretation of patterns and trends in exchange rates and/or trade data and
economic information
• effective explanation of relationships involving exchange rates and/or Australia’s place in 5−6
the global economy
• effective use of data and economic information to support the analysis.

• adequate interpretation of patterns and trends in exchange rates and/or trade data and
economic information
3−4
• adequate explanation of international trade relationships
• adequate use of data and/or economic information within the analysis.

• superficial descriptions of patterns and/or trends in exchange rates and/or trade data or
economic information
1−2
• superficial identification of elements of international trade relationships
• narrow or inconsistent use of data and/or economic information.

• does not satisfy any of the descriptors above. 0

Economics 2019 v1.1 Queensland Curriculum & Assessment Authority

IA1 sample assessment instrument October 2018
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 Criterion: Part B — Evaluating
Assessment objective
4. evaluate an economic outcome relevant to exchange rates, trade patterns and/or trade
theories

The student work has the following characteristics: Marks

• discerning synthesis of economic ideas and/or perspectives to support the conclusion or

decision
• perceptive conclusion drawn or decision made about exchange rates, trade patterns 6−7
and/or trade theories, based on the use of relevant economic criteria
• critical economic reasoning and justification.

• effective synthesis of economic ideas and/or perspectives to support the conclusion or

decision
• effective conclusion drawn or decision made about exchange rates, trade patterns and/or 4−5
trade theories, based on the use of relevant economic criteria
• feasible economic reasoning and justification.

• description of ideas and/or perspectives that link to the conclusion or decision

• reasonable conclusion drawn or decision made, based on economic criteria/criterion 2−3
• identification of some economic reasoning.

• opinions and statements about economic ideas or unclear conclusion. 1

• does not satisfy any of the descriptors above. 0

Economics 2019 v1.1 Queensland Curriculum & Assessment Authority

IA1 sample assessment instrument October 2018
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 Stimulus for Part B
Source 1 Source 2

Department of Parliamentary Services, ‘Monthly

statistical bulletin — July 2017’; Research Paper Series
2017–18, Parliamentary Library, p. 33,
Creative Commons Attribution-NonCommercial-
NoDerivs 3.0 Australia,
http://parlinfo.aph.gov.au/parlInfo/download/library/prsp
ub/WUKX6/upload_binary/WUKX6.pdf;fileType=applica
tion%2Fpdf accessed July 2017.

Cusbert, T 2017, ‘Estimating the NAIRU and the Unemployment Gap’,

Bulletin, June 2017, www.rba.gov.au/publications/bulletin/2017/jun/2.html.

Source 3

Department of Foreign Affairs and Trade 2016, Australia in brief, 51st edn, DFAT, Barton, ACT, p. 33, Creative Commons
Attribution 3.0 Australia, https://dfat.gov.au/about-us/publications/Documents/australia-in-brief.pdf accessed 15 Aug 2018.

Economics 2019 v1.1 Queensland Curriculum & Assessment Authority

IA1 sample assessment instrument October 2018
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 Source 4
Exports
In 2015-16, exports of Unprocessed primary products decreased 10.2 per cent to $126.2 billion and
Processed primary products fell 2.8 per cent to $49.3 billion.
Exports of Manufactures rose 2.6 per cent to $44.5 billion, with Simply transformed manufactures (STM)
(excl Nickel) exports rising 0.3 per cent to $14.2 billion and Elaborately transformed manufactures (ETM)
exports rising 3.7 per cent to $30.3 billion.
Other goods (mainly Gold and confidential trade items) exports increased 16.2 per cent to $23.2 billion.

Imports
In 2015-16, imports of Unprocessed primary products fell 36.7 per cent to $11.7 billion and Processed
primary products decreased 2.5 per cent to $34.3 billion.
Imports of Manufactures rose 7.1 per cent to $206.0 billion, with STM imports rising 2.1 per cent to
$15.7 billion and ETM imports rising 7.6 per cent to $190.3 billion.
Other goods (mainly Gold and Confidential items of trade) increased 1.8 per cent to $11.3 billion.

Source: DFAT publication ‘Composition of Trade Australia 2015–16’, Department of Foreign Affairs and Trade,
January 2017, pp. 6–7, Creative Commons Attribution 3.0 Australia, http://dfat.gov.au/about-
us/publications/Documents/cot-fy-2015-16.pdf accessed 15 Aug 2018.

Source 5 Source 6
The consequence of a fiercely competitive, Trade and investment flows have been
global market place can be seen in every important drivers of economic growth in the
Australian industry — from agriculture, to past, but the relationship between
manufacturing, to mining, to services. globalization and growth remains imperfectly
understood.
Department of Industry, Innovation and Science 2016,
Australian Industry Report 2016, ‘Enhancing Schwab, K 2017, The Global Competitiveness Report
Australia’s competitiveness’, p. 143, Creative 2017–2018, World Economic Forum, Geneva, p. 5,
Commons Attribution 3.0 Australia, www3.weforum.org/docs/GCR2017-
http://publications.industry.gov.au/publications/australi 2018/05FullReport/TheGlobalCompetitivenessReport2
anindustryreport2016/ accessed 15 Aug 2018. 017%E2%80%932018.pdf.

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