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24 exam-style questions with model answers, plus 37 quick multi-choice questions — every question on the site for this standard, grouped by the 8 pages of notes they come from.
Write a full answer before you reveal the model one — that comparison is where the marks come from. Every block links back to the notes that teach it.
Explain why New Zealand imports bananas.
Explain in detail why New Zealand exports some types of fruit and imports other types of fruit.
New Zealand's two-way trade with one large Asian economy is many times larger than its two-way trade with another Asian economy of similar population.
Explain the possible reasons for this difference, and give a reasoned judgement about which reason is likely to matter most.
Apart from Australia and the United States, name one of the top five countries New Zealand exports to, and one of the top five countries New Zealand imports from. Name one of New Zealand's major export goods.
Explain in detail why New Zealand's export earnings are considered vulnerable, given the pattern of what New Zealand exports and where it sends it.
Choose one of New Zealand's top five sources of imports.
Compare and contrast the impact of importing from that country on New Zealand producers and New Zealand consumers, and give a reasoned judgement about whether New Zealand as a whole gains.
Explain why the world price in the price taker model is drawn as a horizontal line.
The world price of lamb falls. New Zealand is a price taker in the world lamb market.
Explain in detail how the lower world price affects the quantity of exports and the amount of export receipts. Refer to the price taker model in your answer.
The world price of a major New Zealand export good falls sharply.
Compare and contrast the impact of this on New Zealand producers of that good and New Zealand consumers of it, and give a reasoned judgement about the overall effect on New Zealand. Refer to the price taker model in your answer.
On a two-country model, explain what the trade price (Pt) represents and why it sits between the two countries' original domestic prices.
New Zealand exports wool to an overseas country. New Zealand then reduces its national sheep flock significantly.
Explain in detail the impact on the level of exports and on export receipts for New Zealand wool. Refer to the two-country model in your answer.
A free trade agreement removes the tariff on New Zealand exports of a horticultural product to a large overseas market. New Zealand exports of that product rise sharply.
Compare and contrast the impact of this on New Zealand growers of that product and on New Zealand consumers of that product, and explain the impact on New Zealand growers of other horticultural products. Refer to the two-country model in your answer.
New Zealand has a deficit on the balance of goods and services. The world price of a major export rises.
Explain how this will affect the deficit.
A record harvest allows New Zealand to export significantly more of a horticultural product, at an unchanged world price.
Explain in detail the impact on export receipts and on the balance on goods and services. Refer to the price taker model in your answer.
New Zealand experiences a period of strong economic growth. At the same time, growth slows in New Zealand's major export markets.
Compare and contrast the effect of these two developments on New Zealand's balance on goods and services, and give a reasoned judgement about the overall effect on the New Zealand economy.
Identify two groups that demand New Zealand dollars on the foreign exchange market, and two groups that supply them.
New Zealand's imports from the United States increase significantly.
Explain in detail how this affects the NZ$/US$ exchange rate. Refer to the market for the NZ$ in your answer.
In the same year, New Zealand's export receipts rise strongly, and the Reserve Bank of New Zealand raises the Official Cash Rate while other countries' central banks hold their rates steady.
Compare and contrast the effect of these two developments on the NZ$ exchange rate, and give a reasoned judgement about the overall effect on the New Zealand economy. Refer to the market for the NZ$ in your answer.
The New Zealand dollar appreciates. Explain the impact on New Zealand exporters.
The exchange rate moves from NZ$1 = US$0.60 to NZ$1 = US$0.68.
Explain in detail the impact of this on a New Zealand firm that imports machinery priced at US$54,000 per unit.
The New Zealand dollar appreciates significantly.
Compare and contrast the impact of this on (i) a New Zealand business that operates guided tours in New Zealand for overseas visitors, and (ii) a New Zealand business that imports and sells European kitchen appliances. Give a reasoned judgement about which is more seriously affected.
Explain what is meant by a free trade agreement, and name one that New Zealand is part of.
Give an example of a method a government could use to protect a domestic industry from imports, and explain in detail how it works.
A small New Zealand industry faces strong competition from cheap imports, and asks the government for protection.
Discuss whether the New Zealand government should protect this industry. In your answer, compare and contrast the effects on the different New Zealand groups involved, and give a reasoned judgement.