FORT STREET HIGH SCHOOL

HSC Economics 2017

Assessment Task 1: Individual Research

Task Type: Research Essay (Written In-class)

Task Date: Week 5, Term 1 (revised from 2017 HSC Assessment Booklet)
Task Weighting: 20%
Time allowed: 45 minutes
Content:
HSC Topic 3: Economics Issues

Outcomes
H1 demonstrates understanding of economic terms, concepts and relationships
H7 evaluates the consequences of contemporary economic problems and issues on individuals,
firms and governments
H9 selects and organises information from a variety of sources for relevance and reliability
H10 communicates economic information, ideas and issues in appropriate forms

Research Task
Students are to research TWO essay questions given below.
Students will write ONE of these essays at school under exam conditions (the question will be
selected on the day of the task).

1. Discuss the effects of economic growth on unemployment and inflation in Australia

2. Explain the causes of recent trends in the distribution of income and wealth in Australia.

Assessment terms
Discuss: Identify issues and provide points for and/or against
Explain: Relate cause and effect; make the relationship between things evident; provide why
and/or how

Explanatory Notes
The questions will be accompanied by stimulus material intended to assist in guiding the
composition of your extended response (based on Section II of the HSC Economics examination).
It is important that the stimulus material is explicitly referred to within your essay but it should form
only part of your response as it is expected that your essay will draw upon a broader range of
ideas and data.
It is expected that essays will include a range of economic information (e.g. statistics, examples,
diagrams, tables, etc.)

Marking Rubric
In your answer you will be assessed on how well you:
demonstrate knowledge and understanding relevant to the question
use the information provided
apply relevant economic terms, concepts, relationships and theory

1
 present a sustained, logical and cohesive response

Question 1
Discuss the effects of economic growth on unemployment and inflation in Australia

In a market economy, prices are determined by the interaction of demand

and supply in the market place. When aggregate demand (or spending)
exceeds the productive capacity of the economy, prices rise as output
cannot expand any further in the short term.
Source: Australia in the Global Economy, Dixon and OMahony

2
Question 2
Explain the causes of recent trends in the distribution of income and wealth in Australia.

Source: ABS

... over 80% of wealth in investment housing and shares accrues to the top
20% of households.
Growth in the value of these financial assets is accruing only to a minority of
people, and is therefore driving up wealth inequality. As financial assets
generate investment income, this also increases income inequality.
Source: Inequality in Australia: A Nation Divided, Australian Council of Social Service,
2015

3
 1.
-EG and cyclical unemployment, hidden unemployment, okuns law (for
unemployment to fall; economic growth must exceed the sum of labour force
productivity and labour force growth)
-optional: EG=MORE GOVT REVENUE=more spending on training programs, job
search assistance, disability subsidies=reducing structural, frictional and hard
core unemployment
-changes in underemployment & how underemployment changed during the GFC
-EG and demand pull inflation, inflationary expectations=increased
unemployment
- economic growth has positive impacts on unemployment and negative impacts
on inflation