hello welcome everyone to the HSC economics revision lecture this is the last lecture in the series for you guys for this cohort because right now you're probably studying for HSC which for some of you might be exciting because it means it's towards the end of your school Journey for some of you might be really nerve-wracking um but hopefully if you're here today you've been studying quite a bit and you're feeling somewhat prepared even if you're not just yet you have quite a while right over these holidays to keep preparing so hopefully you're not stressing too much and hopefully you can get some stuff out of today um that'll help you with your HC exam so yeah um just before we get started um who am I I'm Juliana I graduated in 2019 um that's my atar and my Mark if you're interested in why you might think I'd be qualified to be taking this lecture um this I usually put a strike through I don't know why it's not there anymore but I dropped Co-op um if you have any questions about the scholarship itself feel free to put them in the chat I'm happy to answer them and I'm interested in computer science and cyber security so that's what I'll be doing next year um yeah I've been tutoring economics for three years now taken classes every single year so hopefully this by this point I have a good amount of knowledge I can share with you about what I think works for excelling in the HSC for economics um and yeah hopefully it means you get some stuff out of today too so uh just before we get into the content if you haven't heard of atar notes before we provide a lot of free and paid resources to HSE students you're all probably here because you've heard of us otherwise I'm not sure how you would have signed up to the lecture but um yeah you've probably used things like our website our website has a whole bunch of these resources free ones like study notes lectures forums are pretty popular our atar calculator articles I've written a bunch of Articles as well like ones about how to write a really good economics essay so you can find those on our website also all my past lectures are on there too so if for some reason you like today's lecture or you want to see more there's other videos up there um covering all the different topics from throughout the year too if you guys have seen one of these before welcome back um glad to have you sticking around um but yeah that's basically our free resources um we also have some paid resources so Shoot Smart is our tutoring service we have around two weeks left of this year and then we have um next year's cohort starting soon so it's probably not as relevant for you guys now but study guides they can be pretty useful I wrote the economics guide that's on our website and that's on ADD unlimited which is basically like our Netflix but for study notes so I have a code you can use which will be given to you like in the middle of this lecture if you want to give it a go it's a 21 day free trial so I'm I think it would be the best option for you guys you don't have to pay anything you can just use my code and access it because HSC is not too far away so if you're going to use the book it's probably to cram and um yeah having like a three-week trial of it is probably a good way to cram if you're looking for those types of resources um yes that's that's all the promo stuff um the quick housekeeping stuff I want to get into just to start off is ask questions so beneath the video there's a little slider q a box I can see some people have already put um questions in there keep dropping them in there because I'm going to dedicate quite a lot of time to the Q a especially in this lecture because you guys probably have some really targeted questions now that you've done basically the whole syllabus of content I'd rather go through and answer questions that you are really curious about or need help with rather than a whole bunch of theory that you might already know so um pop your questions down in that box um also answer questions I've got some live polls throughout which will be practice multiple choice questions and to those um and that will help us keep things really engaged and for me to keep track of what you picked up and what you haven't um also just a reminder to be respectful the questions are moderated so they'll show up once uh they're screened um and also feel free to tell me whether or not you want me to slow down or speed up slido as as we go through and questions do start to pop up and you start to read them um feel free to thumbs up the ones that you'd want me to uh answer first just so that I get through the questions you all want to hear answers to the most okay so what are we going to be going over today the first section is um some current news just to see what's going on in the economy at the moment um then we're going to do a little bit of revision on topic one stuff just because I know where you guys are probably at you're probably right now the most aware I'm not going to say the most confident but you're the most aware of topic three and four because most of you guys probably learned that in the term that just finished um and you've probably forgotten or neglected topic one a lot of people do this because topic one you learn literally a year ago in term four of last year so for most schools at least so um especially for revision a lot of people neglect it so I'm hoping that this just acts as like a little bit of a refresher um and we'll go through the content fairly quickly just because it should be mostly all revision for you and not too difficult revision so it'll be a bit of a refresher on topic one stuff this doesn't mean you can't ask me questions from other topics totally fine to do that as well um and we'll go through some exam tips and tricks and some skills as well so how do I approach the HSC paper all of that stuff will be pretty relevant to you guys hopefully so yeah um last reminder to just keep putting your questions down below if you have any as I go through okay so let's start off with an overview um I just want to overview each topic once again just to remind you of how they link together um hopefully by now you've finished all the content for all to four topics but um yeah let's let's go through and see how they Interlink because this is quite relevant for essay questions so topic one is on the global economy um it explores globalization and how the economies of the world are basically interlinked is this a positive or negative thing for the world economy topic two is about examining Australia's involvement with the global economy so whether or not we're performing well how do we measure our performance with the world this can be a bit more of a trickier topic because as you all know you're dealing with things like the balance of payments and calculating that calculating out terms of trade we're looking at a bit in a deeper level exchange rates um so can be thought of as one of the more difficult topics just because it's a little bit more heavily mathematical um but it's a shorter topic so when you compare it to the other topics you do have to spend slightly more time on it but there's less content so it ends up being slightly equal um those two are obviously interlinked right because topic one's about the global economy and topic two is about Australia's place in the global economy so um definitely linked to there topic three is your economic issues the analogy I like to give here is the economy is like a Rubik's Cube Rubik's Cube have six faces and there are six economic issues in HSC economics right you've got economic growth distribution of income and wealth environmental sustainability inflation unemployment and external stability those are the six right and they all conflict and you probably found this um You probably found this quite relevant when um you were doing topic four and you looked at the potential conflicts between the objectives so yes that leads me on to topic four economic policies and their management so how does the government and any uh government organizations manage the economy and all of those issues from topic three so topic four is the one that requires you to be a lot more analytical and form your own perspective on what's going on in the economy so not always is the government going to be right not always are they going to put in policies that are going to benefit the economy most sometimes they aren't as effective and you can justify why right so that's all of topic four you look at the budget monetary policy you look at microeconomic policies you look at labor market reforms all of that stuff so obviously topic three is heavily interlinked with topic four here and you might see essay questions overlap as well so the hot the hotter essay questions are usually the ones I see that link topic three and topic four or that link topic one and topic two because you're not usually used to it because your assessments during the term are all independent based on topics and they're not linked so if you can find practice essay questions that link those topics together a lot of past HSC papers have these sort of questions in them then it's a good idea to practice them Okay so obviously you're getting towards the end of your study Journey for economics so um finding your best study method might not be as relevant now but I do just want to remind you that just because you've been doing one method this entire time doesn't mean for the next month you can't do something slightly different based on what's worked for you and what hasn't don't just copy what all your friends do if your friends are doing past papers and you find that they don't really help you don't just do them for the sake of doing them right try and study smarter not harder you'll find it a lot more effective so if you learn better by reading and writing or listening to someone don't just sit there and do practice papers over and over um you might not find it as useful obviously try your hardest to understand the content something that helped me a lot in this period was studying with friends obviously if you have friends that distract you a lot this might not be the most effective thing for you but if you can explain content to your friends and think things to think things through out loud together maybe whiteboard it in a library you might understand it a little better and your memory will actually connect your theory that you're learning to memories that you've made with friends and sometimes that can help you remember the content even better as well so that can be pretty useful um also your statistics or I like to call it case studies it's it's not usually called a case study by many teachers but I like to use that word just because you need context when you give a statistic in economics you can't just give a statistic like GDP increased by two percent yeah but why or how what policy led to that right so I like to think of it more as like an entire case study you give background knowledge you give a stat you give the trends there um the other thing is you should be getting to a point where you can start to remember those statistics you might want to collate them into Graphics um draw up some Trend diagrams and and label those points in that diagram with different statistics that might help you I liked to put my statistics throughout my notes and you'll see that reflected in the slides I put my statistics through the slides because I find it really difficult to remember statistics without the context or the theory behind them so that's my reasoning um and the last thing is just to become familiar with your syllabus when I was at this point in my HSC journey I was writing a lot of essay plans I was not writing very many practice paper responses like entire essays I probably wrote I'm gonna say at least 20 essay plans and when I say essay plan what I mean is uh minimum A4 sheet of paper sometimes A3 I liked the size and the flexibility of A3 and try and write a plan that is as detailed as possible but without actually writing an essay so it's a whole bunch of dot points that would cover certain keywords or Theory points definitions graphs anything that you might be putting in that essay and it should end up feeling at least um an a four sheet of paper right so yeah that's what I did they took me about 20 minutes each and that meant that I could basically do two essay plans for every essay that another person wrote um and I found this helped me the most just because I wasn't uh I I didn't need much help on writing the actual essay I was pretty good at synthesizing my thoughts I needed a lot more help on piecing together what goes in the essay so that I could be faster so that type of thing if you're similar to me then maybe writing essay plans might help you more there too um cool so that that's all my like initial tips now let's go into some information about economic news um these sorts of questions are just frequently asked so I go through them very quickly at the start of each lecture first is do you need to read the news at this point in your study yes you'll want to be focusing sometimes even more on looking at where the theory you've learned can be applied um I know the budget is scheduled to come out like very close to your HSE I believe if you can do a little bit of research on the budget I like to use the budget website budget.gov.eu I think it is if you can do a bit of research and reference it in your essays or your should answer questions for the HSE I think they'll be pretty impressed because it's such a short time span before HSE but that being said if you get really stressed out by that fact if you're thinking oh my goodness I don't want to be remembering brand new Theory a week before my exam that is okay they won't expect you to know what's going on in the news a week before the HSC paper because they've written this paper like six months ago it's already been locked away and reviewed multiple times so they're not expecting you to know what's going on in a month's time right but I think they'll really appreciate it if you do have really relevant and contemporary examples so if you can talk about the brand new budget that's going to come out or even if it's just about what economists are hypothesizing will be in the budget that's good okay so see if you can do a little bit of research on that not too much one page of notes is way more than enough okay so don't fall into the Trap of my budget note need to be like 10 pages long and super detailed with every single quote from Anthony Albanese in there no no it's okay right just one or two quotes from some politicians that you think are notable maybe the treasurer maybe Anthony I'll be easy um and then maybe three of their major policies that they're using and a couple statistics about each one so honestly you could get away with half a page of notes so I don't think it's too much of a burden um and it would really help elevate your response in terms of its how contemporary it is so yeah I would recommend having a look at the new budget once it's out otherwise stick to Sydney Morning Herald Ross giddens is a fantastic Source if you've never heard of him he is a journalist that used to give lectures just like this one so he knows the HSE Theory really well and um yeah sometimes he includes some HSE specific stuff in his uh articles which is really good so his are probably the best articles to read um try make sure your stats are up to date from 2020 or 2021 at least um try not to have examples that are like before 2018 and call them current because they're not really anymore now I'm feeling old but that's okay um and the ones that I would really recommend that you update in particular are just these two the cash rate and your economic growth rate possibly also the inflation rate for you guys um just because they're all pretty relevant and I'll show you in the next slide what they all are so if you're sitting there freaking out like oh my gosh I don't even know what the cash rate is at the moment that's okay um how do you remember it all like I said before I tied in with all my theory and I just colored it differently to my notes because who doesn't like a good amount of color and sometimes summary tables so the periods of time that I suggest you focus on for your statistics is the mining boom the GFC and client so you can call that covert you can call that post covert whatever you like but but the reason I say to focus on those is the mining boom was probably the last time the Australian economy experienced rapid growth and the GFC was the last time we experienced like a global crisis that caused a recession not in Australia we didn't experience a recession but the world economy and the current time period is when we experienced our session so often stats in or off or off essays will ask you actually typically for one of these time periods so don't be surprised if you get in to the HC and they ask you specifically for covert stats or they give you a quote from around the mining boom period um so yeah I just saw a question someone saying what year was the mining boom it varies around 2003 to 2005 is when it was started and people say it ended around 2012 officially so it was a long long period from around 2002 three all the way to 2012 but it definitely peaked right before the GFC hit I would say um cool so let's move on um I want to talk a little bit about how covert's going to impact the stats you have in your economic analysis just because it is so relevant for you all um so going into 2020 I just want to remind you all that Australia had worsening economic performance we we weren't even doing very well we had very low growth it was below two percent and a lot of the news headlines were saying Australia are we going into a recession recession had been Googled like I was looking at the Google Trends when I was doing my HSC and recession was being Googled like 10 times more every month right so people were scared of a recession before they even knew about covert right so we didn't go into covert on a good foot we went in kind of like not experiencing the best growth so we had the worst performance since the GFC I know the GFC wasn't that long ago around 2008 2009 but still 10 or so years that's notable right for it to be the worst performance um we had pretty weak spending and investment and economic growth forecasts were repeatedly cut by our treasurer the Australian economy contracted for the first time in 28 years in March of 2020 and that was 0.3 so pretty small a bit of the Fall was because of the bushfires that were at the beginning of 2020 and around January but most of it was the early stages of lockdown travel bans all of that stuff that just stopped people from spending money um GDP shrank seven percent in the April to June 2021 quarter this is when we went into our proper recession um and that was compared to the previous three months it was the biggest fall on record since we started recording recessions in 1959 more recently the shutdowns of businesses across the country should have definitely taken their toll right a lot of businesses haven't fully recovered from the pandemic and um that is even still despite different government and Central Bank measures to try and support the economy um so what did the government do they gave over 320 billion dollars in emergency funding to combat the economic impact of the virus so Scott Morrison said the biggest economic Lifeline in Australia's history was that package that they released and it supported economic growth by 1.8 in March alone so that's pretty substantial for it to lift GDP by that much um but the stimulus itself did represent 16.4 percent of GDP which is quite a lot um we're lucky as a country that we don't have very much debt especially compared to countries like America if you compare our debt levels and our you can use net foreign liabilities that statistic from topic two we're not heavily in debt and we're what's called a triple A Grade economy Triple A meaning that we've never ever defaulted on a loan before and I'm talking alone with either a world bank or type of entity or another economy so we are very good at paying back our debt we've never had problems with it before and we actually don't have as much debt when you compare us to other um other different areas and regions around the world so we could afford this basically we could afford going into um the pandemic with more debt than others could interestingly though international trade was something that helped us keep our growth kind of positive it grew to one percent um to account for 3.8 boost in GDP so that kept our GDP a little higher than maybe what it otherwise would have been because commodity prices were going up um and whenever you see commodity prices go up below the time you see demand for exports go up as well okay so that's just a summary of what the recession was caused by a fall in consumer spending which was 12 not surprising everyone was at home and a fallen investment of six percent um this is just a quote to remind you guys that the economy wasn't doing well even before covert so let's not forget the economy was already struggling before the virus crisis due to a downturn in housing construction weak business investment and Tapped Out consumer spending those fundamental challenges have not gone away and the shock of covert only exasperated them I want to bring this to your attention because you can use this in topic four when you're talking about microeconomic reform so if we've had problems with consumer spending even pre-covered it seems like it's something more structural to do with the economy seems like perhaps a productivity issue not just covid-19 lockdowns so don't let the government trick you into them saying Oh you know our productivity is only slow because of covert and things like that it's not we've had really slow productivity for the past 10 years and we've seen that reflected in slow wage growth lower inflation than normal um when you take away all these like one-off headline events like the Russia and Ukraine conflicts that's going on so we're hoping in the next couple years the government steps up a little bit and implements these more long-term policies that are going to reform the economy to become more productive now that they've dealt with most of the emergency measures they had to implement because of covert so there needs to be long-term change is the short answer there um with all of that being said covert is not the only thing that's happened to Australia in terms of our economy we have a rich contemporary economic history that spans more than 30 years of things like the mining boom and the GFC which should be as equally as important to your study so don't forget about them and make sure you have enough statistics from those time periods as well okay so here's a couple of the key stats I want to go through that reflect uh the modern economy so this is as of September 2022 if you've never seen one of these RBA snapshots before they are fantastic the website link is there for you to use and this is what I would say you should read about for next month right before your HSC so the cash rate is at 2.35 this is more than this is like way more than what the rate used to be it used to be at 0.1 percent during covert um obviously that's grown to counteract inflation because inflation's now sitting at 6.1 so you can kind of compare those two stats there economic growth is pretty high at 3.6 percent wage growth is picking up as well it's been pretty low for the past 10 or so years like I mentioned but it's picked up to about 2.6 percent the unemployment rate is at its lowest level in forever I think since like the 1950s oh yeah there you go it's it's in the slide lowest unemployment rate in 50 years as well um and yeah as you can see our net fund liabilities they're not they're not that big right they're not even half of our economy some of you might look at that and go that's a lot of net foreign liabilities but compare it to the US economy which I think it's like 300 of their GDP which is insane um there's the dollar doing pretty well it did pretty well during covert as well so there's not that much to comment on there um China's growth is something to look at and and be quite interested in especially if you're doing the case study on China for topic one they are not doing well at all especially when you compare it to their growth even during covert their growth was quite it was lower than normal like they experienced growth of between six to ten percent usually but they had growth of around three to four percent during covert now it's even lower so the whole world's kind of moved on with their lives but China's growth is still low and it's a good thing to research why that might be happening I won't go into it in too much detail today just because I know that some of you aren't doing the China case study so it might be wasting your time a bit but what you should look into is how their restrictions are still affecting the way their consumption and exports and supply chain Supply chains work in China so yeah you should have a look into that household savings is higher than normal um this is because people have lower confidence right so when you have lower confidence that you're going to maybe keep your job because you've just gone through the economy's just gone through a recession and inflation's high and interest rates are up people tend to just save a little bit more money just in case something happens when people feel like the economy is doing really well they don't save as much money because they think they're really secure so that's just more of a behaviorism statistic there I guess um I'll just explain what's happening with some of the main ones uh so with the interest rates the reason they have gone up so much is because and this is from the rba's meeting minutes the board is committed to returning inflation to two to three percent range over time so they're aiming for much lower inflation than six percent they need to half it at least which is a lot um and the way they're going to do that is through the cash rate so for those of you that don't remember the cash rate is the rate that the banks pay for interest on money right because the banks have to get money from somewhere as well not just if people are only saving eight percent of their income which is not a lot and people are borrowing money to buy houses there's not going to be enough savings to fund the loans right so what the banks have to do is they have to borrow money the banks borrow money from the RBA and the RBA charges them the cash rate okay so that's why when you look at the cash rate you're probably like huh my interest rate if I want a loan is a lot higher than that well yeah the bank's got to make some profit right so the banks will give you an interest rate that might be like double the cash rate or even more depending on the loan you take out but it's essentially what you can think of as the price of money right because if that's how much money costs for banks and Banks just put a profit on it then yeah if the price of money goes up if the cash rate goes up for a lot of people so uh that's a that's a good thing for inflation because if the price of money goes up money is more expensive people can't afford money as much AKA they can't afford to take out a loan so spending declines and when spending declines inflation goes down so that's how it controls inflation inflation has been mostly contributed by Automotive Fuel and also new houses the prices of new houses so the fuel one you're probably thinking yep that's the global supply chain issues to do with oil especially to do with Russia's invasion of Ukraine um and also properties the there's a lot to do with um the labor there's a lot of a there's a shortage in labor in the construction industry as well as materials it's very hard to get materials imported because of still there's some covert supply chain issues so they're they're some of the main reasons why inflation is so high at the moment thank you okay so we're going to be going through some stuff from topic one now so those of you who were like we should Deep dive into topic one let's focus on topic one there you go enjoy topic one um so I'll tick those off in the slider I guess cool so let's go through topic one stuff please keep putting your questions in there if you have any so that I can go through them um I will leave like 15 minutes right before the first break we'll be having a 10 minute break at 10 past five I'll leave 15 minutes before then so only about 30-ish minutes of content to go through then I'll go through as many questions as you've been putting it putting in there and then um we'll come back from the break do the second half of topic one and then talk about the exam tips and more q a stuff all right so let's start off with International economic integration and what the heck I mean when I say that term so the global integration that I'm talking about is how much um different countries trade with each other really that's all it breaks down to so when we think about how economies can be integrated the only way they can be integrated is through trade right well in a material sense right in a gross domestic product or gross World product type of sense they need to be integrated through change through trade um gross World product that's just the sum of all the gdps around the world so it's pretty simple it's measured in US dollar for consistency and GDP at PPP because you might hear me use this term is that purchasing power parity I always get the words confused on that on the in that acronym but all it means is grab that gross World product I was talking to you about and make sure that you've converted it to uh account for the different variations in price so convert it to um US dollar let's say for consistency standards um some other terms you might want to know what they mean is financial contagion this is news of an economic disaster that results in financial traders moving money out of an affected or nearby area so one of the classic examples is the financial crisis that happened in Greece that affected all the surrounding economies like Italy and the UK people pulled money out of those countries just in case because they're nearby to Greece and usually the countries that are close to each other are more economically integrated right like say for example Australia and New Zealand were pretty economically integrated at this point we actually trade quite a bit I'm sure a crisis in New Zealand would somehow affect Australia as well um cool so that's just some definitions here's a little a little bit of an overview of the breakdown of where money sits around the world so advanced economies these are your fully developed ones like Australia and the US Canada Italy all of those really um developed economies that make a lot of money and grow at a moderate Pace they own 40 of world GDP at PPP and they only have 14 of the world's population so when you think about it like that they're pretty rich not many people right makes sense because you know obviously the when you get when you look at the the wealthier people around the world they they disproportionately own a lot of wealth um if you look at the emerging and developing economies they have 60 of world GDP at PPP but they have 86 of world population so they have more of the world's population less of the wealth it tends to be how it works um in a like distribution of income scale even for an advanced economy when you break it down and look at their population so not saying this is a good thing just saying that when you look at the breakdown of where GDP sits around the world it is very disproportionate to population um China and India are one of the two largest emerging economies although I would argue that China is starting to become more of an advanced economy rather than an emerging one especially when you look at how their growth has slowed across the past 10 years but there's still a country you can do for your case study so according to the HSC economic syllabus they are still an emerging economy um and yeah what can you take away from all of this a relatively small number of these advanced economies dominate Global Production compared to a large number of the emerging and developing economy cons themselves okay so let's have a look at globalization what is it it's the integration and removal of barriers mainly trade ones but others too between countries and economies um these are the forces that drive globalization according to the World Bank they're my favorite ones to look at I think they make the most sense and a lot of research has been gone into deciding them so you can definitely quote these in your essays the first one is New Markets so we've had growing Global markets in areas like Finance Insurance transport and a lot of deregulated financial markets have mean meant that we've seen increased integration around the world in finance right because today you might turn around and say I want to buy some stocks from a US company and you can go and do that pretty easily and pretty fast 10 years ago that was a lot more difficult of a process so we've globalized Finance which is really important because people like to be companies like to have as much investment as possible right and and they tend to get the most opportunity when that investment doesn't just have to come from their own country and come from the whole world also new actors so multinational corporations that's what the MNC stands for or transnational corporations that's what TNC stands for these are your McDonald's your Samsung your Apple any big company that is open in multiple continents around the world they're the ones that dominate World production through Global Supply chains they help globalization because it's in their best interest that it's easy to move Finance to move products to move people around the world right it helps their output the WTO is another actor that's not so much new now they started in the 90s but they definitely have helped us globalize because they are the World Trade Organization they help govern free and fair trade and enforce certain policies like that one time where Australia wanted to ban salmon imports from New Zealand um that was funny because they people in Australia thought we're um New Zealand was too good at farming salmon and they thought we can't have them import it here because no one's going to buy our salmon we tried to put that policy in the WTO came back to us and said this is illegal under international law if you want to be part of the WTO still you're gonna have to take the salmon ban off of New Zealand so that was a good thing for New Zealand right because this doesn't help globalization if we start completely Banning products around the world just because we don't want our Farmers to go out of business there's obviously reasons for protection and we'll get into that a little bit later but in general the WTO has been very good at governing fair trade and enforcing their international law ngos non-government organizations they're they usually provide foreign aid and they also tend to bring globalization um more towards uh World focus and you've also got policy coordination groups like The G7 the G20 the oecd they all help globalization because they help coordinate global economic policy so yeah the next stop points about new rules and new Norms so market-based economic politics is spreading around the world democracy is growing human rights awareness is increasing there's more action agendas for develop developing countries and it's making that all mean that multilateral Agreements are a lot easier to put into practice when you have governments that are similarly aligned they tend to cooperate better so that's what that top Point's all about and the last one one of the most important ones is new tools of communication so we didn't even have the internet like 30 to 40 years ago so that's pretty crazy how are we supposed to communicate with all these different countries and make globalization happen if we couldn't communicate right so um it's more about the speed at which the communications happening these days um and yeah how people are almost instantly reachable right so it's all about communication it's also about transport it's basically gotten a lot faster in order to actually move people around the world so the world's become smaller feeling almost and when it feels smaller then we are more able to integrate the global economies of the world so yeah that's the four forces driving globalization according to the World Bank um then we break down the syllabus and the syllabus goes through a couple dot points that it wants you to focus on in terms of what's going on in our world so trade in goods and services is one of them so obviously this is a factor of globalization because it's just gone up by so much so in the past few decades uh we went from 38 of global output being for trade to 50 of global output that is a lot more than 50 of global output doesn't stay in a home country it moves around um this is pretty good because it means countries can specialize and they can trade in whatever they have comparative advantage in so comparative advantage remember is when a country has a lower opportunity cost than another country are producing a certain good so that's um Obviously good because if we all specialize in the thing that we have the lowest opportunity cost in we're going to be the most productive global economy we can and the more productive we are the more GDP we we have all the more output we can produce and the better Our Lives will be overall so trade agreements definitely help with trade deregulation removal of rules and laws that restrict trade and new communication and transport have been the main things that have helped that um in 2018 our tariff level was 2.23 so that's been a record low for a while now okay um two other ways that we've promoted free trade is through what's called bilateral and multilateral agreements by meaning two so between two countries Australia and the US is a good example of that or China and Australia that's called chapter that agreement multilateral agreements cover regions so Apec region an agreement with them or the Asian region have a multilateral agreement um those are those tend to be harder to come to an agreement on though because you have to make a lot of different countries happy which is really difficult because countries will always want to put their best interests forward right so it's a lot easier to just negotiate with one other country so bilateral agreements are more popular these days than multilateral ones um and interestingly the direction of trade flows have changed quite significantly so trade flows have increased for a lot of emerging economies they went from seven to nineteen percent of global trade from 1995 to 2015. we hope to see as the global economy becomes more and more productive these emerging economies now become developed economies and then a lot of the developing countries can move on to become emerging economies so hopefully in the next hundred years or so we see rapid Development Across the world and that statistic only goes up okay Financial flows obviously mentioned in the the factors from the World Bank as well but Finance is the most globalized feature of the world economy right everything revolves around money I'm not going to export my stuff that I produce unless I get paid in an Australian dollar why would I want to be paid in another dollar it's inconvenient to me and and not be able to convert that to the Australian dollar currency only has value if you can convert it right so Finance is important we need to be able to move money around quickly and convert currencies quick as well so ATMs credit cards PayPal things like that definitely facilitate this um and the main driver of this was around Financial deregulation period which began in the 70s and the 80s with the floating of the dollar onto the Forex Market Forex meaning foreign exchange um and like that last dot Point says it's a humongous Market it has a daily turnover of over four trillion dollars well now 6.6 trillion dollars um so it's had a 40 increase in the last decade and that is way more than the size of the Australian economy like three times the size of the Australian economy in just one day their daily turnover is it is insane the amount of trade that goes on in the Foreign Exchange Market um one I guess negative impact of globalized Finance is what you called speculators speculators are investors who buy or sell Financial assets with the aim of making profits from short-term price movements so they'll buy when a currency is slightly cheaper and if they buy enough of it and sell enough of it when it goes up just a little bit they'll be making millions and this isn't necessarily a good thing because it creates excessive volatility right these speculators aren't buying and selling for a purpose or investing for a purpose they are just buying and selling to make a bit of money right so that's why there's so much exchange on that market as well because of speculators um mentioned that first one this is you have greater investment options you can get an investor not just from Australia now um if you're opening a new business which is pretty good um more likely is you might even seek Finance from a bank that isn't Australian based so you might be um yeah you might be able to get a loan from somewhere around the world now which is pretty gives you a lot more options right it's pretty good um however the GFC did lead to a bit of a fall in activity and in financial markets because of that increased risk so Banks were less willing to lend especially um because the cost of lending became a lot higher so total activity on the global Capital markets fell by around 1 1 000 billion or 10 1 000 billion I don't know if that's one trillion from about 2008 to 2009 due to the GFC so that's quite a bit and that's just an example of like you know globalization is great and all but when you have Financial contagion people act like sheep once some of the main investors pull money out everybody copies people get scared and things tend to really tumble like a lot tumble not just a little bit so that's why you get these excessive movements as well um you've also got those tnc's I was talking to you about or mnc's depending on the textbook you're using um those are like your McDonald's your Samsung these operate in a number of different countries in the hope of obviously making a profit um something that you should know exists is what's called foreign direct investment this is when you can purchase a controlling interest in a foreign subsidiary which just means over 10 of their business as well so fdis is the shortened word for it um those have increased in the past 10 or so years six times their level since 1995. so we've got a lot more investment internationally in companies which is pretty good as well um the main drivers of this foreign direct investment have been mostly government policy people a lot of governments have restricted their um they used to have a lot of red tape around not allowing International Investment we still do have some protection for that obviously we don't want a foreign company to purchase like all of our energy Supply because that's not safe so the government does monitor it but when it's okay it tends to approve it and also migration laws that encourage International labor Mobility which takes me on to some of my next points you'll see in the next couple slides um just wanted to go through technology transport and communication again just a reminder consumers are Global you probably know this because most of you I would say have purchased something online probably even this year I'm always doing this right if you log on to a website like Asos and you buy some shoes they're probably coming from the UK which is very very far away from Australia right so consumers are now global which is lovely for us because we get increased Choice um I don't know about you guys but if I had to be limited to only like the clothing that they sell in the shops I'd probably be a lot sadder than I am right now um I love purchasing stuff online and especially from overseas it gives me so much more um so much more opportunity and and different choices so it's definitely increased living standards for a lot of people and it also lets us access things that might be cheaper so if you've ever like gone on to eBay and bought like really cheap phone case or something like that from overseas you're taking advantage of globalization there as well um and also travel travel is a big thing it's really driven GDP as well in the past 20 or so years travels become easier quicker and more exciting for a lot of consumers so that's just a bit of on the transport and also e-commerce side of things uh it also helps firms firms can Outsource which is really good when you Outsource you have reduced labor costs and they can communicate better so hopefully they can become more productive um technology diffusion is a term you can use it's just describing the way technology spreads from one country to another so sometimes this is what drives disparities in income between countries because you tend to see advanced economies develop more and more technology become more and more efficient and the emerging economies don't adopt those um transport's also a big one that's all been developed quite a bit just to move resources faster and communication as well that increased efficiency um this example I like to give when you think about the difference between 4G and 5G it might not be super noticeable for some of you guys just using your phone on a day-to-day basis but it was projected to increase Global GDP by 4.9 so um yeah it even just a slight increase in productivity for communications would have a good impact on GDP growth as well so it's why we really like developments in Technologies just like that one um and the last thing is the international division of labor or migration migration's great because it means we can Outsource or or get skilled migrants to come in and do jobs where maybe our domestic Market doesn't have those same um people that are willing to do the work or that can't do the work um the only problem with this sort of thing is What's called the brain drain it means that when you have a really skilled employee in a certain country that might be an emerging or developing country they'll tend to want to move to an advanced economy so let's say you have a really fantastic surgeon in somewhere like India for example and they get offered a role in the US which offers them a lot more money and a lot more opportunity for growth they'll probably take it and move and this isn't good because it increases the technological gap between the developed and developing world so um yeah that's one thing about migration that isn't necessarily good but overall it does tend to make the actual ability for migration people to move countries to work is an increase in in efficiency because they can move to where they're most needed basically okay we can also look at the international and Regional business Cycles so international business cycle refers to changes in the world output or economic activity Regional focuses on you guessed it a region so like the EU right um the RBA has this really interesting stat that shows that 63 in changes of Australia's GDP has been due to changes in the interest rate growth levels and inflation from the G7 so we're very very integrated with the international business cycle right that just proves it right there and it means that we have to definitely keep track of it help contribute to a positive global economy and also align our policies in a way that means we are kind of in sync with the rest of the world in that business cycle because our business cycle is probably going to follow that when I say business cycle I literally just mean our growth levels and how they change so yeah um there's some factors that strengthen and weaken the international business cycle generally it's just the factors that strengthen and weaken globalization so trade flows if we reduce those trade barriers or on the other hand right if we increase them that would weaken it Financial flows things like deregulation and Forex markets definitely help that investment flows increasing in the number of tnc's and foreign direct investment technology improving transport and communication those are awesome factors that can help strengthen the international business cycle on the other hand a weaker business cycle might be things like when the government decides to introduce a new tax or a regular regulatory policy um just decreasing their spending exchange rate it's a lot of volatility or fluctuations can kind of weaken the business cycle and also structural factors that influence the competitiveness of our economy as well um so yeah we aim to strengthen it we aim for globalization because as you can see a lot of the factors that create globalization actually strengthen the business cycle so that's a good thing okay so we have our first multiple choice question I'm going to hit play okay and you can all you should be able to all see the the poll now the question is which of the following is most likely to be of benefit to tncs so those transnational corporations like McDonald's is that increased trade barriers variations in Regional business Cycles restrictions on International Financial flows or migration laws that encourage International labor Mobility give you guys a couple minutes just to vote for that in the poll foreign guys like 30 more seconds all right I'm gonna display the answer [Music] now well done you guys must you don't even need to be here 100 of you guys got it right well done so yes migration laws that encourage International labor Mobility that's the main benefit for tnc's all right let's do some q a so I'm going to present this um the questions you've asked so far so upload the ones you want me to answer or ask some more as I go through just before we take a break okay let me grab the I'll stop the poll so you can see the questions all right balance of payments what depth of knowledge is needed for this topic in the HSE the same amount of depth as all the other topics um I know it's probably not the answer you wanted to hear but um if I was to go over it very quickly the current account is the biggest Focus don't I've I've honestly never ever seen a question on the capital and financial account ever right don't take this by word I don't want you guys to like sue me after doing HC and there's a capital account question in there but honestly 99 of questions are about the current account makes sense because the current account is the one that records the transactions with the rest of the world that are reversible so the ones that are um more about yeah the liquidity of the Australian economy it's the more important one um so I'd go into the current account in a lot more detail um I'd know how to calculate the balance of payments when you get given like a whole bunch of categories that are broken down like say you get given uh exports Imports you get given net primary income net secondary income um everything's gone from my brain now but you get the gist like those sorts of multiple choice questions where you get given all these categories and they ask you a question like what is the current account deficit something like that um you should know that in a lot of detail um you don't need to really know what the trends have been in terms of the specific categories but you should know what the trends have been overall so Australia has been in a current account Surplus for over I think it's almost three years now pretty notable we've been in a deficit for as long as we could remember before then what does that mean what does it mean about investment what does it mean about trade so analyzing that's probably a good idea as well because it's a new trend so they might ask like an asset question on kind of count Surplus because that's fairly new um but yeah Focus most of your energy on the current account um also one of the more trickier dot points is how the uh two accounts are linked so how does when um let's say for example Ikea opens a business in Australia what where does all that Finance go where is it recorded on the balance payments right like is it a credit in the capital and financial account is it a debit in the cap in the current account think it through and and record that type of interaction so I'll just explain that one since I've just used it as an example but the actual ownership of land and a warehouse let's say that is recorded as a credit on the capital and financial account because it's an asset that they can then sell but they've purchased something in Australia right so they've given us if they purchase something and then What flows back is dividends or profits right because once Ikea makes the money they're going to send it back to Sweden right we're not going to get it all so that's one example of a flow you should be able to explain that interaction with examples pretty well and the other example I like to give because it's kind of a little bit different is let's say for example we take out a foreign loan how is a foreign loan recorded it's actually a credit in the capital and financial account because you get all the loan amount right so we now own that as an asset in Australia that is the loan amount let's say for example for the house you can represent it as the house anytime you're going to pay back interest on that loan it's recorded as a debit in the capital account so that's an outflow it goes back to its Home Country so the two most important things know the breakdown of the current account how it works but the second most important one that I see students trip up on all the time is how do you explain the relationship between the current account and the capital in financial account in terms of credits and debits that entire flow so try try to see if you can synthesize that with examples drawing diagrams will be your best friend for this topic as well hopefully that answers your question like you wanted it to be added struggling with your introduction I'm guessing this is for an essay so I'm going to go with that um the very first thing you should put in an economics essays introduction is a definition so I'll go through an example right towards the end of today but when you see a syllabus term that looks to be the focal point of the essay you need to start off with defining it and I literally mean in the first sentence so if for example balance of payments was in there the first sentence you start off with is the balance of payments is a record of transactions that Australia has with the rest of the world that's the definition right so you start off with that and then in your next sentence you then try and answer the question so you then say something like um if it's asking you about how the balance of payments uh influences may be domestic policy you say something about how the balance of payments affects our external stability and our external stability will affect all our different internal indicators like our economic growth rate Etc so the government has an interest in maintaining external stability and therefore they need to monitor the balance of payments so you answer the question in the next sentence and then you might have one more sentence that deep Dives a little bit more into what you're going to talk about so notice so far this has been very different to an English intro you don't need to have start off with a thesis and then give your arguments and kind of bring it back to the question it's not that at all it's like definition link to the question a little bit more context if needed right so context for that example question I gave might be you say something like um the Australian government can use the cash rate in order to um determine an interest rate which provides a small differential with the rest of the world something like that I totally made that up just off the top of my head but that's just an example of one intro that would be a good structure for HSC economics so definition first answer the question second give a bit more context though they don't need to be long they should be pretty short um because more of your marks are going to come from the actual essay itself when doing topic three can we focus on external stability you don't really understand it okay I'll summarize just quickly now the main things from it because I don't have much of it in my slides but if we have time at the end I can go through it so external stability when you look at it obviously is going to be about our relationship with the rest of the world so what measures that the balance of payments is the first thing so you're going to be looking at our current account and measuring that the second thing is our terms of trade this is kind of linked to our balance of payments because remember in our balance of payments you have what's called bogs or the balance of goods and services so our terms of Trades a bit linked with that but think about how our exports weigh up to the rest of the world that's our terms of trade the last thing that's super important is our exchange rate so talking about um how it can be volatile how it's determined what does it mean in terms of um if our dollar appreciates if it depreciates what's the effect in the short term long term all of those things and sometimes the last thing you might mention is debt so net foreign liabilities or um that foreign debt even um you can talk about how much debt we have and might comment on how sustainable it is um it's a smaller topic because we don't have any problems with it so I don't usually see a large essay focused on it but those are the main things I would say that help you uh answer anything to do with external stability if you know those you should be mostly okay it's not a super big topic I think oh goodness I think I only had like two pages of notes for it in topic three for my HSC so if you just know the main things um and why external stability is necessary you should be able to answer most questions do you have mnemonics or acronyms to more easily remember hotter equations formula graphs or ideas um I don't think I did for economics but I definitely did for business studies because my gosh it was hard to remember the syllabus for that that uh that um course in economics you don't have to remember the actual syllabus so I'm not sure maybe there's not that many equations that are super hard like even if I think of like the multiplier k equals one over one minus NPC like I can't think of an acronym that would work for that maybe I'm just silly maybe there's some economics acronyms on the internet I'm sure there are HSC economics acronyms sometimes there's like Forum posts yeah like oh perfect a forum post from atar notes um there's some yeah there's some people there that have come up with acronyms for like Twi or balance of payments and things like that so maybe give it a Google but I don't think it's necessary unless you really are struggling to remember things um most of them are for business studies so yeah I think you should be mostly okay if you understand how things work like if you actually understand why an equation is the equation it is you'll probably find it easier to understand and remember um how do you interpret the protection graphs that's an amazing question we're going to do that after the break so I will skip that one for now um how do we get a band Six in Echo um oh yeah thanks there you go FYI summon bam was against Canada not New Zealand sometimes it's good to fact check me a lot of these things in my head get muddled up so thank you for calling me out there um yeah how do we get a band Six in Echo it's a very difficult to just generalize this but my biggest tips which I'll go through a bit more um towards the end of the slides when I go through my like essay tips but you need to be understanding the content and forming your own judgment so don't just state statistics and like policies the government have done actually evaluate them and say what's good and what's bad about them and maybe what you do differently um that type of judgment if it's backed up by Theory and stats is really exactly what's going to get you a band Six because it's showing that you're like critically evaluating and a lot of the times those harder essays have that verb of like evaluate or assess um and people tend to not evaluate success they just say this is what the government had done and then they move on they don't say and it's bad or it's good for XYZ reason so that would be my top tip my other tip is to undercut your own arguments sometimes so if you're arguing for a certain policy you there's always one case where that's not going to work right you have to admit it to yourself it's there's there's a counter argument definitely that exists out there and if you give your own counter argument it shows you've got this like holistic view so say you're arguing for about 70 of your paragraph and then the last 30 you just undercut it you say like however if this happened then a different policy would be needed that also shows you up like a really well-rounded view so those are my two tips for like band Six style writing I would say all right I'll do this question as the last one before the break and then I'll answer some more when I come back but why did you apply for Co-Op and what was the best thing you got out of it um I applied because I wanted stability going into uni that um I had some jobs lined up like placements probably because I wasn't very confident in myself and my ability to get them on my own um that's completely a lie if you're sitting there like you're not confident in yourself but you can get a scholarship you can get a job it's it's okay um but the there's definitely some things I got out of it that were really beneficial the first one is the friends and the network of people that you gain from literally before you even start uni so yeah we had like during o week which is like your intro week to UNI we had like complete days where we'd spend them bonding with our Scholars like the other people in the program those people are generally like pretty driven pretty um studious people um and they also like they were great people to do like group projects with for instance and be friends with just to get help throughout your uni degree and they're also people that you probably will end up like working with so it's almost like networking very early on so I'd say the network of people in Co-op is a lot better than the money you get the money's not that good when you compare it to actual internships um and the internships as well are like their average the ones I did at least um some people I get really lucky and they have a fantastic placement they have a great internship but some people aren't as lucky so you get less Choice um when you do co-ops so that's why I ended up dropping it because I wanted more Choice um but yeah I'm really grateful for the friends that I got through the program as well so if you're sitting there evaluating whether or not to take it I would say take it and drop it if you can rather than just not taking it at all so all right I'll leave questions there and I'll come back at 20 past five and I will answer some more and go through the protection stuff from topic one as well so I'll leave this light up here now um if you want to get have a look at the book I wrote the study guide for economics you can use that code and sign up in the break otherwise I'll talk to you more about it when I get back cool all right enjoy your five-ish minutes break guys and see you at 5 20. foreign foreign foreign foreign foreign however foreign yeah okay I hope that you had enough rest if you're on your phone scrolling through like Tick Tock or something time to close it now um I'm definitely very guilty of this in every single lecture I watch for uni so not The Tick Tock but like just getting distracted and um yeah especially in break time but tried to bring your focus back we have only an hour and 10 to go most of that's going to be driven by study tips and tricks and your own q a and things like that so whatever you put into this you'll get out of it the most um so yeah that's just my little comeback to the world of focus speech um okay so a couple of things just before we get back stuck into all of this if you want private tutoring I'm not currently available but there's other incredible tutors that you can get shooting from through the truth smart program um you can book an info call there that might help you in the lead up if you need some very targeted specific assistance with things um also that book I was telling you about I have in here I wrote this study guide oh I think like two years ago now it's still very relevant to your HSC and theory in it I wrote it in a way that I hope most people can understand lots of diagrams and graphs um and summary tables it's 80 pages long so it's a lot shorter than most textbooks you'll read but for that reason um I think it contains everything you need to know as synthesized as possible in a easy to remember way so Anna I like to flex this because it's like the thing I'm most proud of probably doing ever um so I think it's pretty good I put a lot of time into it and since this is a free trial you might as well try it out right there's no harm in trying it out um so yeah the other thing is you can get the book from the Bookshop 15 off if you use uh 15 sep if you want the actual physical book um just to show you like I do have the old book this is the one that wasn't written by me obviously because I was a HSC student at the time um I have like I highlighted most of it and I went through it and I wrote some notes which I wrote and some papers at the front of the book as well so um I found it really really useful and I definitely used this when I was like making my book and things like that as well so I definitely suggest you um have a read through if it's you know free trial why not um let's get started with protection stuff I'm going to turn the light on real quick because I forgot to do that when I walked in okay it's on now just because I know it's gonna get dark and then I'm going to be sitting here in darkness and that's really sad so anyway protection a lot of questions about the graphs in particular um and yeah how do we interpret them and things like that so we'll definitely go through that now okay so what's protection protection is the use of artificial barriers which restrict the free flow of goods and services in international trade to give domestic producers what's called an artificial Advantage so um what where when we say artificial the words used quite a lot of times it's really really restricting efficiency right because we're adding artificial things to our economy it's not going to help the efficiency of the economy so um protection's not really a good thing if we're just looking at it on an efficiency basis but there are some arguments for protection which you really really need to know because that it comes up in so many different HSE papers and these are the arguments so the first one is called the infant industry argument so when there's a brand new industry that's established in Australia it's very hard for that industry to compete with overseas humongous already established Industries right because they're babies it's an infant industry if you think of a little baby you have to like protect it right well it's young especially as a parent like you need to make sure this thing can grow until it's kind of large enough and then you can start to take your hands off and then let it kind of run away and make its own decisions right um but with these this argument for protection right the whole butt scenario is when you start to lift your hands off that needs to happen right so it's temporary if you're going to protect an industry because it's new and you're waiting for it to grow large enough that it can start to achieve economies of scale you need to take the protection away when it does so otherwise if you just keep it protected it's going to become inefficient because it's going to start to become reliant on the protection it's not going to innovate in order to compete with the global market the second argument the one that's it's not as strong is domestic employment if overseas countries are offering cheaper production then obviously domestic jobs are at risk right companies Outsource sometimes if you impose tariffs and barriers it will prevent job losses or recessions but a lot of the time this will come at an expense of an efficient exporting industry so it's it's not always a good thing to protect an industry just to protect employment um we saw this fail pretty miserably in the US um when one of the arguments why Donald Trump wanted more protection was to protect domestic employment the only thing that happened here when he started to put um tariffs on other countries is things got more expensive for Americans so the prices of clothing and food went up and people were like okay great if you're gonna give me you know maybe a better job but things are going to become more expensive anyways then it kind of offsets that benefit so when they did study the results of all of this there was no benefit to the protection because in the end everything became more expensive or you can just call that inflation right so yeah it's it's not always a good thing um sometimes in very rare circumstances it might be necessary but uh it's not the strongest argument for protection and here's a tweet um about when Donald Trump wanted to go into that trade war with China to protect its he technically just wanted more of an equal trade balance between the two countries so he wanted the exports to China to kind of equal the Imports that the US were receiving from China that's probably not going to happen China's really large manufacturing-based economy so they're going to export probably more than what the US has to give um especially when the US focuses more on like Services right like tourism for example um but one thing that yeah he did kind of have an argument for was intellectual property which I'll go on into a little bit more detail later on but um the US is a major exporter of intellectual property rights and patents and China has notoriously weak intellectual property laws which kind of abuse that um so yeah that was something that he wanted to fix and did mostly end up fixing with the trade War but not saying the trade war was a good idea or the best way to solve the problem at all it was very aggressive um probably not warranted but yeah there's some reasons when you look at it a bit deeper than just protectionism and fighting and maybe cultural Wars uh then maybe what it seems on the surface so the other arguments are dumping and defense so dumping is if a country has an oversupply of goods it might dump excess products at a very low price and damage local businesses because they can't compete so um the most famous example of this is any country in the European Union the EU has this thing called the common agricultural policy which heavily subsidizes agricultural production and causes great excess production so Oxfam was claiming this is destroying the livelihoods of farmers in developing countries um and they'd be mostly right to say this so one example of this might be you have farmers in let's say in Italy that grow tomatoes and the government pays them a dollar for every tomato they produce so they think great let's produce as much Tomatoes as possible we're just gonna saturate our land with crops for tomatoes so we can make as many as possible and get all this subsidy from the government that's all good and well until they don't have customers for their Tomatoes anymore because you know there's only so many tomatoes I know Italians eat a lot of tomatoes and sauce but like there's only so much you can eat right so the Tomato farmer might be like hmm I need to get rid of this stock somehow sell it somehow because people aren't buying it domestically what they might do is sell the tomatoes for a really cheap price in another country like Australia they'll say oh Australia's tomatoes are pretty expensive at the moment what if I ship my tomatoes there and sell them for just under the local price that's all well and good in the short term for consumers right because we get cheaper Tomatoes but in the long term it hurts our domestic farmers and we need domestic Farmers because we need um local produce in the case of I don't know a war or overseas country stop exporting their produce to us so maybe they have some type of food crisis we do need some type of local agriculture right so it's no good if our all of our domestic tomato Farmers close down so this might be a reason for a country to put some type of protection on an industry like Agriculture and they might do this using something like a quota which I'll explain in the next couple slides which will just restrict the amount that can be imported um and the last argument is defense so defense of a Nation for example if we have a war we don't want to be left without one of our core things we need to live like say we imported water not very good right if we run out of water and then we have a war we're all going to die of dehydration so yeah defense of a Nation that's obviously an extreme example but you know we need some things um or defense of a culture so the classic example for Australians is television content um in the next couple slides I have a statistic on it but I think it's around 60 of Television content needs to be locally made um between the hours of like 6 00 a.m and midnight don't quote me on that it'll be in the next couple slides for you to write down um but yeah that that protects our culture right we see australian-made entertainment and relevant news content on our televisions um so protecting our culture uh yeah so that's defense of either a nation or of culture okay this is an example of a question that you might get asked why can dumping be used as a justification for trade protection um you can just explain similar to the example I just gave about how dumping might harm domestic production in the short term it's not a good thing because the dumping is temporary right so it's going to go away we can't close an industry just based on temporary dumping despite it being beneficial for consumers so we need to have some type of protection for those Industries all right so let's go through methods of protection I'll start with the graph for the Tariff so what is a tariff it's a tax on imported goods and it's imposed for the purpose of protection so if we have a look at this graph here we see p which is our base price P1 is the price with the Tariff so the difference between P1 and P those two is the price of the Tariff like let's say two dollars right two dollars the Tariff costs then we look at the quantities so let's start with q so P Accu that is quite little Supply so what this is telling us is domestic producers are not willing to supply much at that low of a price but on the other hand q1 shows us that there's so much demand everybody wants whatever the item we're selling is at this low of a price let's say lava lamps because I have a lava lamp sitting on my desk so um let's say that domestic producers this is the price of I don't know five dollars domestic producers don't want to make lava lamps for five dollars that's not enough money for them to make profit but at five dollars everyone who feels nostalgic for their childhood might buy one like me five dollars would be really cheap but then if you imposed a tariff if the government said oh okay um instead of paying five dollars then let's say it's ten dollars so they put a five dollar tariff on it notice that the quantity that's supplied goes up because domestic producers are more willing to supply lava lamps at ten dollars per unit then they are willing to supply at five and the quantity demand goes down because some people might think oh ten dollars it's a bit much for something that's pretty useless right um to note down the bottom you can see that the Imports before the Tariff were q1 minus Q most of the market was made up of imports you compare it to Q3 minus Q2 but not most of the market only a little bit of the markets made up of imports now so you can see how a tariff Works a tariff increases What's called the world price or the equilibrium price that's used in a market and it brings it up to a price that's more towards the the domestic equilibrium or not the world price the domestic equilibrium price right so um the price has gone up which is not good for consumers but it's good for those domestic suppliers because that's supply line represents domestic Supply okay so how do we calculate government revenue off of this graph it's the price of the Tariff so five dollars let's say the difference between P1 and P multiplied by the quantity imported so Q3 minus Q2 so it's a b c d that little square that would be the revenue the government collects due to a tariff because remember tariff is a tax it's paid to the government all right so what are the advantages and disadvantages of a tariff then the advantages is it causes What's called the redistribution effect it stimulates domestic production and employment right because we saw more supply for lava lamps when we saw the Tariff be introduced also that Revenue effect the government gains Revenue that rectangle ABCD and the consumption and protection effect as well so Imports May decrease uh this can be a good thing for our balance of payments our terms of trade and our current account for those of you that have done topic two stuff um on the other hand you see that price effect consumers have to pay more money maybe you won't buy that lava lamp and put it on your desk anymore because it's more expensive um and the other one which is one of the bigger arguments is the reciprocity argument which means that a retaliatory tariff might be put onto Australia let's say that we are importing our lava lamps from China and China Imports our Ugg boots and they might say you know what you put a tax on us for our love lamps we'll put a tax on you so they put a five dollar tariff on all the Ugg boots that are imported and it kind of nullifies the positive effect of the initial protection because now we see a decrease in our exports so we see a decrease in GDP anyway so not always the best thing because of how Petty countries can be and like you know do a one for one you know Tit for Tat sort of game with tariffs okay next is a quota so quota is a quantitative restriction on certain categories of imported goods the effects of quotas are quite similar to tariffs except for the fact that no government revenue is generated so if we go back to those effects you don't see the advantage of the revenue effect when it comes to a quota but you still see the redistribution and consumption and protection effect but on the other hand sometimes governments aren't as retaliatory when you use a quota just because it's not costing them money it's more of a ban quotas are more popular with a straight up band so we have a quota of zero for guns and illegal drugs let's say um and that's pretty important because we don't want any to be imported right so quotas are better for prohibition rather than Banning things um through trade or like wanting to protect things slightly so how does a quota work basically the exact same as a tariff the graph is exactly the same so um all it does is restricts the quantity though so your quota is actually represented by the brace that sits or between q and q1 versus Q3 and Q2 so the Imports before the quota the Imports after the quota the quota number is Q3 minus Q2 right that's the actual quota number let's say a hundred lava lamps that is the unit right so Q3 minus Q2 okay let's ask a quick question and see how you guys answer it a government decides to reduce the input quota for a product other things being equal what if which of the following is most likely to occur in the domestic Market I'll hit play here so think about what a reduction in a quota making a quota even tighter what do you think would happen sorry I sneezed um the revenue of foreign producers would it increase the domestic price of the product would it increase domestic firms will produce less of the product or market share of foreign producers will increase what do you think if we get a tighter quota give you guys a minute foreign you're all doing really well with these questions by the way give you guys like 30 more seconds okay I'm gonna show the answer now a hundred percent of you guys got it right again well done why am I even here I don't know but um that's really good the domestic price of the product will increase right because you've got a smaller quota this tends to throw off a lot of people because when I say like smaller quota sometimes people mistake that as less protection when it's not smaller quota means more protection so trying to try and remember that smaller quota more protection bigger quota less protection A really lovely way they like to throw students off in the HSC with wording so don't forget that one the last one is a subsidy so a subsidy is financial assistance which is paid to domestic producers like Farmers right so it allows them to increase Supply and compete internationally the advantages of a subset over a tariff is it encourages domestic production employment and exports because the price stays low it also is a price Advantage right because we don't have to pay more money because the subsidy just allows Supply to increase so if we look at this graph we see the price initially domestically means that there's less quantity that when the price declines so the subsidy value is the difference between P the domestic price initially and P1 so maybe like five bucks there the supply goes up right it actually increases in value because the subsidy per unit means that Supply can increase per unit so um questions like what is the value of a subsidy just take the difference in the price and the difference in the quantity there shows you um what effect it's had when sometimes you get a question like how much has the government spent on this subsidy it's the difference in price multiplied by the difference in quantity so five dollars multiplied by maybe an extra I don't know 100 units or so so that's can be the effect of your subsidy um foreign yeah it's easier to remove than a tariff as well it's subject to regular reviews so the government doesn't like to have subsidies stick around for too long the reason they don't like it is it costs them money right if if something costs them money then they're going to scrutinize it every year in the budget because anything that costs the money is like oh we kind of want to get rid of this because the more we can get rid of something we're paying for the better it is in the long run right we might have a better budget balance so yeah it's under more scrutiny than a tariff because a tariff makes the government money and if they see a million dollars coming in from a lava lamp tariff they might be like well maybe we should just keep it because it's making us a million dollars and then we can use that for something else the disadvantages of a subsidy like the others is it distorts resource allocation and even more so this one will redistribute income from Mostly taxpayers right because most of the government's money comes from taxpayers so it might be inefficient because if the government's now giving tax money to I don't know to Tomato produces domestically it might not be an efficient use of money they could be putting that towards maybe welfare payments or something similar so yeah might not be great and it also has direct costs on government budgets instead of income so can be not so good for the budget but overall in terms of you notice here no retaliation countries do not tend to retaliate when you put a subsidy on your local produce so can be a lot more peaceful of a form of protection okay these are the two smaller uh methods of protection that exist you only need to know the definition and maybe one example so the first one is local content rules which specify that Goods must contain a minimum percentage of locally produced parts or a proportion of goods in the market must be locally made so the example I gave before here's your statistic um that Australian television need to show 55 australian-made programming between 6 a.m and midnight and it protects our culture right so the the the reasoning here is for defense the second one is what's called export incentives it gives domestic producers assistance like grants loans or technical advice to encourage businesses to penetrate Global markets and expand their market share so an example here is austrade their export Market development grants they reimburse exporters for costs related to the promotion of their exports into new markets so a domestic business willing to break into maybe an international market like the US us trade have said that each dollar spent generates between 13.50 and 27 worth of exports so it's very worth it for them and it tends to be a very good form of protection that that argument there is for the infant industry argument right for little infants helping them expand um cool all right then you've also got the effects of these protectionist policies so there's some reasons why it's good but these are now the reasons why it's not so good so the first thing is it distorts resource allocation and the income distribution around the economy right so local Industries will gain in the short term but in the long term they're going to be less efficient and that's not good because we don't want to be spending money okay like spending like subsidy money for example on industries that aren't as efficient the second one is inflation inflation might go up because when you put a tariff on a good you're artificially increasing its price and when we have a price increase sometimes we have inflation go up too um the next point is about economic growth it might just be slower because of that inefficient use of resources maybe that money we used on the subsidy could have went somewhere else more efficient um and exports might be lower as well because the protected Industries don't really want to you know expand out to overseas markets they feel kind of comfy in the position they're in they don't feel the need to grow so those can be some effects if we consider the global economy we also have some disadvantages there so the first one is reduced access to markets usually developing economies are the ones that are hurt most from protection which is not very good they might not be able to access advanced economies as easily the next point is about international trade barriers they tend to harm developing countries which you know they're exporting their agricultural products and some of their manufacturing Goods it it makes for some inequality right also you've got those reduced living standards my lava lamp is going to cost me double the price it cost me before that means I have lower real income because things become more expensive so that's not as good economic growth might fall because of that and there might be reduced trade so not very good there um and decrease global economic growth and capacity due to inefficiencies and higher prices overall around the world um so let's go back to that U.S China trade War example why wasn't it smart because it causes all of these things which is not good at all um so yeah if you put a 45 tariff on Chinese Imports and 20 of Chinese exports end up in the US that's a lot of imploded inflation that you're bringing into your country right so here's a bit more of a case study on the US China trade War Donald Trump long accused China of unfair trading practices and intellectual property theft some of which are exaggerated others which weren't and China long-viewed America of attempting to curb its rise to global economic power just a bit of a cultural power Dynamic weirdness there this resulted in a trade war between the two Nations at the height of the trade War Trump threatened that 45 tariff on all the Chinese Imports um so it would have very much impacted them um they only reached about 10 percent of a tariff on 200 million dollars of Chinese Imports I believe and China retaliated with 10 on 60 billion so in the in the end it didn't really work because it just resulted in a lot of like retaliation from each side every time one side put tariffs up the other side did the same but what it did mean is that when they both kind of got sick of it all they started negotiating and becoming you know adults and they decided that they would come up with a U.S China agreement they decided Well in the agreement China pledged to boost U.S Imports by 200 billion and strengthen their intellectual intellectual property rules which is good and the US agreed to halve some of its new tariffs that it had imposed on China so it was just a preliminary agreement it was kind of put to a halt when the pandemic started because of renewed tensions uh but hopefully they can continue to work on the agreement and the different phases that were planned in the next 10 or so years because as we just saw protection doesn't help help neither do the domestic countries nor the world so even we suffer from this trade War okay let's go through some exam preparation stuff I'm going to go through this in the next like 20 or so minutes and then I'll leave the rest of the time all the way to 6 30 for Q a so keep popping your questions in there um if you have any and I'll go through them all right I went through that okay approaching the HSC exam the first thing is your language I know this is a lot of words on the slides so I'll just summarize it for you um be careful with the language of questions so when you read things like long-term impact and short-term impact high and low hypothetical economy and a specific economy that's going to change your answer right think about a depreciation in the short term versus a depreciation in the long term have very different effects like you look at that J curve right the graph the one that they teach you in topic two um short term you have this like decline long term you have this upwards slope in exports also make sure you know your common skills things like calculating a current account deficit based on a table of values calculating a multiplier effect the value of a tariff or a subsidy you can figure these out by just doing lots of practice and seeing lots of the same type of questions so do as many multiple choices you think you need in order to have seen most of the main questions you get asked because yeah it's an easy way for you to do the HSC and to kind of know what's going on um the next thing is question 17 18 19 and 20. so these are your back end of the multiple choice so these are the ones that are basically harder right so harder questions um means that you might find them more difficult what I suggest you do is try and remind yourself that the end of the multiple choice questions you still know all the content right like you've been taught all the content you've revised all the content so you shouldn't really get scared when you see them I know they're more difficult than the rest of the multiple choice questions but they're definitely doable don't scare yourself and put yourself into a state of like anxiety kind of over like oh my gosh it's the last couple questions I'm not going to get these don't tell yourself that tell yourself no I know the content I've done these sorts of questions I practice them I can probably answer this if I just spend a little bit more time on it so try and remind yourself of that when you see them foreign okay short answer you probably need to give at least one to two sentences per mark this depends on the Nessa verb of course that's been used um but that's just a general guide don't count your sentences obviously but one to two sentences generally a guide make sure you define the key economic term in the question and take a moment to draw conclusions and Connections in your mind and then formulate an answer also a big tip is to consider the impact on individuals businesses and government don't just consider one of them so the impact on individuals might be different if you're looking at I don't know let's look at a tariff the impact on individuals is not as good the impact on domestic businesses is good the impact on the government is good right so they're different you might want to talk about and contrast them and reminder that you can always put graphs and diagrams even if even in your short answer responses not just in your essays to help with your explanations there as well okay with your essays the first thing is always to plan it please put your plan in your working booklet they have to mark them in the HSE so if you put your plan in your little working booklet you draw a line and then you write your essay underneath it I have seen students write just a plan and get like three out of 20 for the essay I know it's not a lot of marks it's not what you're aiming for but it just proves my point that they have to read it and they have to kind of assign you marks for it if you you know maybe you missed some things in your paragraph you put it in your plan you mentioned it they'll give you just a little bit of marks and any marks is good right so no harm put your plan in your working booklet um and always write one it's almost like a table of contents for your marker to kind of just look over and know what to expect in your essay no harm in putting it in there okay uh complex sentences aren't rewarded in economics definitions syllabus terms explanations cause and effect language is don't get all englishly and try and explain things with really long words um markers don't appreciate it um graphs please put in graphs when you come across a topic that can be explained to the graph like the J curve graph I mentioned before or the Phillips curve maybe when you're talking about the relationship between unemployment and inflation it's always a good one um you when you reference your graphs as well label it so call it something like figure one and then talk about it in your essay so say like as seen in figure one as unemployment moves towards zero inflation increases exponentially um and this is because of x y z so you can just use it to explain some Theory succinct but don't use any slang so uh when you're describing something like I don't know like the dollar movements in the dollar don't say the dollars increased or decreased please say the dollar either appreciated or depreciated right because that's an economic term the next point is super super important that's why it's in all caps everything you learn in economics is theory is not fact what we teach you is not straight up fact it is a human science really so we always hypothesize things will happen but humans are unpredict unpredictable and sometimes silly and we uh don't always do what maybe was predicted so you need to use words like May or might or could theoretically so that's where this meme comes from um so you might say something like an increase in the cash rate may result in an increase in the interest rates and you explain why not all the time will it happen there are some times where it hasn't happened so that's why you need to use low modality when you're writing your essays the next thing I've kind of briefly mentioned before the last break but it's counter arguments so if you've given me a point where you've seventy percent argued for a certain policy and then you are about to move on don't move on just yet give me a 30 argument against the policy where might it not be suitable right and you can use however like the keyword you can say however on the other hand something like that to introduce it a tip for absolutely every writing style uh topic I'd say or of course um statistics I mentioned this a bit but please don't just State them you really want to analyze them so treat it like a quote from English follow like the peel method where you mention the statistics or the case study explain the background explain the effect link it to the question right um and the last one is a wide reading quote you probably noticed I had some quotes in there from notable either politicians or economists you can put those in your essays too so one of the most famous ones is one from Paul Keating where he's talking about the reform of the Australian economy around the 90s the microeconomic reform and he says something like Australia is a Banana Republic we need to free this locked up economy right so many HSC economics students use that one when they're talking about microeconomic reform and when Australia transitioned and got rid of a lot of their protection so um that's perfectly fine and actually looked upon as like a very good thing to do in your essays because when you quote experts to back up your theory you're kind of validating yourself it's like another way of putting a stat in instead of always just putting stats so wide reading quotes are good okay in terms of picking the right essay question you're probably sitting there sometimes like I don't want to waste time I'm an indecisive person how do I pick the question that I'm going to answer because it's a pretty weighty thing right the two essays make up 40 marks out of the 100. so this is what I normally run through oh first I'll read the essay questions at the start of reading time and then read the rest of the paper so it kind of marinates in your brain but what you want to think about is what can you brainstorm the most ideas for which question uh which do you know more stats about maybe which do you find more interesting this is the one I usually base my decision on which lends itself more towards our contemporary economic climate which one might be easier this is pretty this is a weak reason and band Six is which relies Less on strict Theory and more on analysis I really like that one because if you think you know a lot if you have more of an opinion more of a judgment on a certain essay question 100 it's the way to go if you want a band Six because you can add your judgment in there a lot more than the other question so that's what I'd suggest the other thing with essays I want to go through is integrating stimulus so the stimulus essay is quite important you need to treat it like a quote in English use it to back up your theory you must reference it like probably at a minimum like three to five times throughout your essay and use it as a guide for what you need to talk about so if the stimulus has a date you probably need to give stats from that range so maybe it's dated as 2006 and it's spoken it's from the Department of foreign trade right you might think oh maybe it's about the mining boom right and you might talk a bit more about the mining boom so there's that um and yeah that's probably my tips for the stimulus and integrating it uh it's basically a hint the stimulus is a hint for what you need to include in the essay so don't overlook it it's pretty important um this is just an example of how I would analyze one of these sort of essay questions so this essay question is assess the effectiveness of monetary policy to manage price stability and economic growth in Australia so the the main Theory point I see there is monetary policy so in the introduction I would I would Define Monastery policy maybe in my uh paragraphs below I would start my paragraphs with definitions of price stability and economic growth but definitely monetary policy first thing you define assess the effectiveness asks for a judgment so you need to judge the limitations and the benefits of monetary policy so talk about how when monetary policy gets really low like 0.1 percent it's not very effective right because there's not much more you can lower it by in order to help the economy grow so it wasn't great during covert right and then you might give the covert example and you might give statistics and things like that so you just got to make a judgment don't be afraid to say when things aren't so good or aren't working economic tools are very infallible they don't always work and sometimes the politicians behind them aren't the smartest or the brightest or they're doing something with an ulterior motive so you can always criticize them don't feel like oh I'm just a HSC student no you are someone who is an economist you've learned all of this information over two years about economic theory and historical like contexts of what's been good and what hasn't been so good you can make just as good of a judgment on this sort of thing as the politicians can so have a bit of confidence in it and as long as you back up your judgments with maybe historical case study examples or quotes from economists that you've read in the news you'll be absolutely okay foreign so I recommend that you do a plan for some of these you get these slides and the recording after the lecture finishes so um you can have a look at those I want to go through some of the questions um now though so let me just approve some of these [Music] um okay I'll close this keep putting your questions in there by the way if you have any ah my computer's really slow that's okay hopefully I'm not too choppy in the camera but not that one I always do that all right so slow [Music] just wait for it to load while it's while it's loading um just a reminder you can sign up and read my book if it's helpful it has a lot more detailed explanations so if you're sitting there and you're like oh I didn't like how she explained balance of payments in like three minutes to me I want a better explanation check out the book because I explain it in like five pages so yeah um my gosh I don't know if they're gonna load [Music] okay they're here we're good we're good all right first question is for labor market microeconomic reforms which policies would you choose how would you continue relating it to aggregate supply in terms of theory okay uh the first one that comes to mind is probably the fair work Act of 2009 because it introduced a whole bunch of protections for the um for the labor market that didn't exist before it um you can also talk about when we had the more what's it called um when we started reforming our labor market so that state-based jobs started to become fused with federal jobs in terms of their Awards we basically streamlined the way our uh the way our labor market worked and we it was I think the federalization of the labor market basically so the labor market started to be um like policies were more Federal based so there was less of the same stuff going on in every single state it just became more efficient um that's probably the main one and the fair work act but if you want to describe it in general terms the way that our labor market became more efficient is people went from always just being on an award or on yeah basically always being on an award to then you had that Enterprise bargaining where Awards or contracts could be determined by unions and a group of employees with their employer and then that broke down even more into individual contracts so when you start to get that breakdown you start to see an increase in efficiency because there is no incentive for you to be more productive if you're hourly rate is going to be based on an award wage that's determined by the government right you only have an ass in you only have an incentive to be better if you get some type of like I don't know yearly performance review where your uh salary can go up um based on your actual individual performance so that's the main one the whole transition away from uh Awards towards more Enterprise agreements than towards individual contracts that is the way that we made our labor market more efficient and efficiency always increases Supply right the more efficient you are the more output you have so that's how you would link it to supply that's probably the big thing that I would explain I forget the actual law I think there's one in like 1995 that that uh covers that reform um but yeah that's the main one I would talk about you can talk about it as more of maybe a trend even if you don't want to reference the actual laws themselves so that's the big one um do we need to know any prelim knowledge so no they won't examine you on your prelim content but they do assume that you know um like things like um what are your factors of production like Enterprise um land labor and capital they expect you to know those so yeah basic fundamental knowledge that's it you don't need to know any of the others the I forget to always pin the question and it moves away um this is okay okay what's the difference between tnc's and mnc's nothing they're actually the exact same thing textbooks just decide to call them different things for the sake of it so yes a TNC is an MNC and that's it does aggregate supply equals K times the change in okay um I think do you mean the multiplier here K being income income times aggregate demand no yes yes income equals K times aggregate demand is probably yeah I think you're talking about the multiplier so I'll explain how the multiplier works now because I think that's what you're talking about so the multiplier is this phenomenon where you think about if I was to um increase the demand in an economy it's not just going to cause the GDP to go up by that increase so let's say the government decides to give um they're going to start a new investment program into the light rails because everyone's complaining they're too small well it's too small too slow my brains start I'm starting to lose it all right so light rails are too slow the government's going to spend another 100 million dollars on them where does that money go maybe towards the engineers that I don't know program the things not sure how they work but let's say the money goes to these Engineers right the engineers now have this extra money let's say on net they got paid a thousand dollars each extra just random figures don't quote me all right they get this one thousand dollars extra in their week what do they do with that thousand dollars they might go and maybe eat out one day of the week and they'll spend a hundred dollars maybe they'll buy a meal for them and their partner or something like that so they've now spent a hundred dollars on a meal and then they maybe go to I don't know maybe they'd go and buy a motorbike and they spend like I don't know three thousand dollars of their money something like that so that initial increase in income that they got that one thousand dollars causes re-spending across the economy so the government giving out a thousand dollars as income didn't just stop there it then caused the person to go out and eat for dinner a hundred dollars and then maybe the waiter if they gave the waiter a tip maybe the waiter goes and gets a haircut and spends twelve dollars and then the hairdresser might go and buy a muffin and spend three dollars and then the muffin man might go you get where I'm going with this right so like that initial one thousand dollars the government gave caused respending of a hundred plus fifty plus ten plus three all of that money was because of the initial increase in income right so the multiplier the way it works is when you inject money into an economy it keeps circulating between people so demand is almost like when you drop something in a pond and it ripples demand is just like that if you drop money in a pond it ripples to all the of people because re-spending happens over and over that's why we don't always like Saving right because if this engineer got the one thousand dollars and put it straight into his account it's useless we don't get any good effects on in terms of demand across the entire economy so um yes aggregate if you inject something into the economy a change in aggregate demand so the second half of that point there multiplied by k k is your multiplier K is the amount that that re-spending happens so it's determined by that engineer initially if he only spends a hundred dollars out of his one thousand dollars then he has now spent what sorry he's now spent a tenth my brain died a tenth of that extra income so your marginal propensity to consume is one tap your multiplier becomes one over one minus one on Ten and then that multiplication you multiply that by the the change in initial aggregate demand you get that respending sum total so yes when you have that respending it's going to mean Supply increases so aggregate supply then matches that increase hopefully that clarifies it for you I love the multiplier it's so cool anyway um how would you recommend learning or remembering I wouldn't actually recommend remembering the syllabus word for word if you understand the content you'll probably understand what the main points are surrounding it um they tend not to expect you to tick off every single syllabus dot Point inside of an essay um not like business studies do at least so I don't think you need to remember it word for word if you want to if it makes you feel more confident going into the exam then then um suit like the little acronyms are probably a good way to do it but yeah I wouldn't actually remember it for word as long as you understand the certain topics you'll be absolutely fine with answering an essay question my echo Tech Teacher bets that macro policy essay is super likely this year what are my thoughts a macro policy essay is likely every year like it's not really a bold claim to make um so yeah like any question on monetary policy would be interesting for sure because monetary policies changed so much in the past year so yeah maybe maybe focus a little bit more of your study on monetary policy I don't know about fiscal policy it would be extremely slack of the HSC markers to ask you a fiscal policy question when they knew that the budget was going to come out really late this year so uh I would say it's more likely you get a monetary policy question than a budget question I don't want to tell you this if it's going to mean that you don't study the budget at all um so try keep your study mostly equal sometimes they give you curveballs so you don't you don't want to not be prepared but um yeah I agree it's likely or it would be nice if they gave you a monetary policy question just because it's so relevant right in the past year so yeah um I don't like predicting things but if I was to pick one it would be inflation and monetary policy so yes your teacher's probably betting okay although I wouldn't bet like all my money on it or anything so like depends how much you value your your HSC okay so I'd probably bet I bet maybe like fifty dollars would be a monetary policy one so take that what you will right like I'm not willing to risk a lot on that but it's likely I'd bet more than I'd bet on like a a budget style or a micro style essay so yeah um how many years of macro policies do we need to memorize for each period um it's not really how many years of macro policy like just no one major change so maybe know what the um the the highest cash rate was for the mining investment boom period right if it was around seven percent just know that that was the peak and then know that when the GFC hit they cut it to around four percent right so just know like the trends you don't need to know every single year just know like the pick and maybe the low point and then compare them um in writing a labor market essay can you use job keeper yes yep as we Define yep yeah I always get this question it's an interesting one right because a lot of macro economic policies are also micro policies because they have to kind of start out as macro policies to become micro so I remember having this like realization in year 12 and I was like whoa it's actually not separate right micro is macro when you think about it sometimes um I would argue that job trainer is more of the microeconomic one because I think job keeper is pretty temporary I don't know how long they're planning on keeping it for if it's for a very long time period Then sure it's it's micro but if it's only for a short time period it is more macro but job trainer the one where they're aiming to like retrain people and reform the labor market that is definitely micro so you can use job trainer um if you're trying to find a more recent labor market policy um labor also recently had this job Summit thing I didn't read into it too much but I think it's where they were announcing some policies that they want to implement that are more micro focused so maybe have a look into what happened at their job Summit and um see if there's any micro policies there that might be useful for you for your labor market essay is it yes oh my goodness is it too risky to only prepare three essays absolutely you might be asked an essay question from topic one or two and then what are you gonna do you you've lost all your marks so yeah don't don't only prepare three essays my goodness um if you understand the content for economics then um you should be able to answer a question without preparing essays it's not like English like you're talking to someone who prepared every single essay for English right so like I'm all for the preparation I'm all for the you know memorizing the stuff but in economics it's so hard to predict what they're gonna ask like it's very unlikely that you're going to get it right if you predict it so that's why I was only willing to bet 50 bucks right so I would prepare no essays I just make sure I understand everything and I'd write essay plans for basically every single syllabus topic just so that you're kind of prepared for any of them or you feel prepared at least but don't memorize an asset because more often than I haven't actually seen someone prepare an essay go into the HSC and get a band Six I don't want to scare you all but I've treated like you know a lot of students and anytime that they prepare essays they don't tend to do as well as the students who just spent more time understanding the content and then applying it so yeah I would say don't don't prepare the essays tips for remembering content this is hard yeah um it depends on what you mean by remembering it like if you mean by as you write like remembering what you need to include before I answered any question that was more than like six marks I actually wrote like almost a mini plan I just wrote Little Dot points probably like three to five words not much at all just a couple words around the question of what I wanted to include because I was someone who definitely got ahead of myself and forgot stuff as I started writing and couldn't Pace myself so writing like three to five words of things you want to talk about before a six month question can be pretty helpful even a format question because you can tick it off as you go right so I found that pretty useful when I was answering like those more difficult style questions um as a year 11 is pedal the best paragraph I think you mean I don't know I don't know what padel is um so yeah but if you're talking about like the point explanation style essay structure in in English um there's so many different ways you can write an economics essay I wouldn't say there's a general structure the one I would tend to follow is you define a key term explain the theory give a case study example explain the theory in terms of the case study example and then um maybe explain a policy that responds to it all and then undercut your argument with a however statement I kind of followed that structure um I'm not sure if that's similar to the one your teacher suggests but yeah I had friends who focused most of their essays like 70 of their essay was all examples and things they had read and then 30 was Theory I've seen people write a 70 Theory essay and 30 examples I probably tended more towards the theory supported by examples style but they could there's all different ways you can get a band Six what I'd recommend you do is go through and read some of the sample like band Six style essays and you'll see how different they are there's no one structure that works so I know that's probably like oh you're like I just want one way to do it all but the way that you find easiest to explain things is usually the answer so experiment with the different styles and you'll probably find one that works most for you would this be relevant to a year 11 yeah I mean I gave a very similar lecture on Wednesday for year 11's moving into year 12. the recording is up on this page so you can go back and see it if you want to but it's basically this lecture didn't change very much um because it's topic one stuff anyway so yeah if you want to watch more of them I have them on the 800 website you can find my previous lectures there so if you board these holidays and you want to I don't know why but if you would want to like binge watch all my lectures I've had them up here since 2020 so there's a lot of content there if you want to go back and watch it um yeah that's basically it um someone's also just added that uh job keeper finished and yeah there you go so in most SEC circumstances the last payment was in 2022. if that's the case this is definitely a macro policy and not a micro one job trainer would be your micro one so thanks for that person who Googled okay um cool I think that's all the questions oh okay someone just said yeah Point Define explain example analyze link yeah yeah that's kind of what I explained right like you give a definition you explain it and then you give an example you analyze it and link it I would just add you need a counter a Counterpoint here it's not that's like gonna get you a band four or band five you just need a bit of a Counterpoint to your own argument especially if it's asking you to make a judgment so um yes I would suggest you add a little bit more to this and maybe put a c on the end put down Sick don't know and give a counter argument yeah any other questions you guys have like five minutes or so otherwise I'll just remind you again to use my code if you can I know my name's annoying as heck to spell but it would mean a lot um and yeah I guess I'll leave it here if you guys don't have any other questions let you go eat dinner if you haven't already and enjoy your night thanks for coming along good luck with your HSC very close now um I'm sure you'll do absolutely fine a lot of you guys answered the multiple choice questions perfectly well and seem to be paying attention as we went along so um you know if you're putting in your best efforts I'm sure you're going to do really well for your HSE as well um so thank you and good luck with your HSC and hopefully I'll see you guys at some point in your futures um yeah bye