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A contemporary economic issue · Part 1 of 2
6 exam-style questions with model answers, plus 9 quick multi-choice questions — every question on this part of the standard, grouped by the 2 pages of notes they come from.
Write a full answer before you reveal the model one. That comparison is where the learning happens.
State the standard's definition of a contemporary economic issue, and explain why "the allocation of scarce resources" is the decisive part of it.
Explain in detail how you would narrow the broad topic "traffic congestion in New Zealand" into a workable AS91228 issue.
Two students choose issues for AS91228. Student A chooses "inequality in New Zealand". Student B chooses "the shortage of qualified builders in one New Zealand region".
Compare and contrast the two choices against the standard's requirements, and give a reasoned judgement about which is better and how the weaker one could be rescued.
On a market model, explain what happens to price and quantity when demand shifts right, and when supply shifts left.
Explain in detail why a rightward shift of demand produces a much larger price rise when supply is inelastic than when supply is elastic, using an example.
⚠️ Illustrative issue. In a New Zealand region, demand for skilled tradespeople has risen sharply because of a construction boom, while the number of qualified tradespeople has grown very slowly.
Explain the causes of this shortage using an economic model, compare and contrast the two causes, and give a reasoned judgement about which matters more.