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A contemporary economic issue · Part 2 of 2
9 exam-style questions with model answers, plus 13 quick multi-choice questions — every question on this part of the standard, grouped by the 3 pages of notes they come from.
Write a full answer before you reveal the model one. That comparison is where the learning happens.
⚠️ Illustrative issue. In one New Zealand town, the price of a scarce good has risen because a large new employer arrived and increased the number of buyers.
Explain this cause using an economic model.
Explain in detail the difference between an immediate cause and an underlying cause of an economic issue, and why identifying the underlying cause matters.
⚠️ Illustrative issue. In a New Zealand catchment, demand for fresh water has risen because of intensified land use, while the amount that can be taken sustainably is limited by the catchment itself and by consent conditions.
Explain the causes of the resulting allocation problem using an economic model, compare and contrast the demand-side and supply-side causes, and give a reasoned judgement about which is more fundamental.
⚠️ Illustrative issue. The price of electricity to households has risen sharply.
Explain the impact of this on low-income households and on electricity generators.
Explain in detail why the same price rise affects low-income and high-income households differently, and why this matters for how an economic issue is judged.
⚠️ Illustrative issue. A New Zealand city introduces a charge for driving on its main routes during peak hours, to address severe congestion.
Compare and contrast the impacts on commuters who continue to drive, commuters who stop driving, and the wider community, and give a reasoned judgement about whether the charge makes the city better off.
State the three things AS91228 requires for Achieved, and the three components of Excellence.
Explain in detail why two descriptions placed side by side is not a comparison, and set out the structure a proper comparison needs.
You are planning your AS91228 report. Explain how you would design it so that all three Excellence components are achievable, and compare and contrast what distinguishes a Merit report from an Excellence one in this standard.