Australian Economy Review
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Course Introduction
This course provides an in-depth examination of the Australian economy, exploring its structure, key sectors, and the domestic and global forces shaping economic outcomes. Students will analyze the roles of government policy, labor markets, trade relationships, and financial systems within the unique context of Australias historical development and contemporary challenges. Emphasis is placed on understanding economic indicators, current issues such as resource dependency, environmental sustainability, and the dynamics of economic reform. The course equips students with analytical tools to critically assess recent trends and policy responses within the Australian economic landscape.
Recommended Textbook
Macroeconomics Australia in the Global Environment 1st Australian Edition by Michael Parkin
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17 Chapters
2734 Verified Questions
2734 Flashcards
Source URL: https://quizplus.com/study-set/1546
Page 2
Chapter 1: Getting Started
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272 Verified Questions
272 Flashcards
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Sample Questions
Q1) In the above,in which figures is the slope the same at every point?
A)Figure A only
B)Figures A,C and D
C)Figure B only
D)Figures C and D
E)Figures A and C
Answer: A
Q2) Which type of graph is most useful in determining if two variables are correlated?
A)Cross-section
B)Variable-correlation figure
C)Time-series
D)Scatter diagram
E)None of the above answers is correct.
Answer: D
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Page 3
Chapter 2: The Australian and Global Economies
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171 Verified Questions
171 Flashcards
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Sample Questions
Q1) The total value of capital in Australia is around
A)$10 trillion.
B)$50 trillion.
C)$100 trillion.
D)$79 trillion.
E)$145 trillion.
Answer: B
Q2) The largest component of federal government spending is for A)Medicare and healthcare.
B)education.
C)interest on the national debt.
D)prisons.
E)national defence.
Answer: A
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Chapter 3: The Economic Problem
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218 Verified Questions
218 Flashcards
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Sample Questions
Q1) Point D in the above PPF figure is
A)an unattainable production combination.
B)an attainable production combination with unemployed resources.
C)More information is needed to determine which of the above answers is correct.
D)a production combination that can be attained once resources are fully employed.
E)a tradeoff.
Answer: A
Q2) Scott and Cindy both produce only pizza and tacos.In one hour,Scott can produce 20 pizzas or 40 tacos.In one hour,Cindy can produce 30 pizzas or 40 tacos.Cindy's opportunity cost of producing 1 taco is
A)1 1/3 tacos.
B)30 pizzas.
C)1 pizza.
D)40 pizzas.
E)3/4 of a pizza.
Answer: E
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Chapter 4: Demand and Supply
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144 Verified Questions
144 Flashcards
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Sample Questions
Q1) In the above figure,________ will shift the demand curve from D to D .
A)a fall in the cost of producing pizza
B)a scientific article published that demonstrates eating pizza is good for one's health
C)an increase in income if pizza is an inferior good
D)buyers' expectations that pizza will be less expensive next week
E)a decrease in the price of a hamburger,a substitute for pizza
Q2) A price ceiling is
A)the lower bound that consumers are willing to pay for a good or service.
B)the minimum price that a consumer is willing to pay for a good or service.
C)the maximum price that a consumer is willing to pay for a good or service.
D)a government regulation that places an upper limit on the price of a good or service.
E)a government regulation that put a lower bound on prices.
Q3) Market equilibrium occurs when
A)all markets become equal.
B)the quantity demanded equals the quantity supplied.
C)demand and supply move in opposite direction.
D)demand and supply change so that they are equal at all possible prices.
E)opposing forces pull demand and supply apart.
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Chapter 5: Gdp: a Measure of Total Production and Income
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135 Verified Questions
135 Flashcards
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Sample Questions
Q1) Over the business cycle,
A)real GDP fluctuates around its trend.
B)only potential GDP fluctuates around its trend and real GDP remains equal to its trend.
C)neither real GDP nor potential GDP fluctuates because they just grow smoothly along their trends.
D)potential GDP fluctuates around its trend.
E)only real GDP fluctuates around its trend and potential GDP remains equal to its trend.
Q2) In 2013,the United Nations Human Development Index ranked Australia A)second.
B)last.
C)third.
D)tenth.
E)first.
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Chapter 6: Jobs and Unemployment
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133 Verified Questions
133 Flashcards
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Sample Questions
Q1) At the peak of a business cycle,the
A)cyclical unemployment rate is positive.
B)natural unemployment rate is negative.
C)unemployment rate is below the natural unemployment rate.
D)frictional unemployment rate is zero.
E)unemployment rate is above the natural unemployment rate.
Q2) During a recession,
A)real GDP is equal to potential GDP.
B)the actual unemployment rate is less than the natural unemployment rate.
C)the relationship between real GDP and potential GDP no longer exists.
D)real GDP is greater than potential GDP.
E)real GDP is less than potential GDP.
Q3) During 2013,Ford Australia announced that it would close its Geelong and Broadmeadows plants in 2016 because of the foreign competition it faced.This corporate move will
A)decrease frictional unemployment.
B)increase avoidable unemployment.
C)increase structural unemployment.
D)increase cyclical unemployment.
E)have no impact on unemployment.
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Chapter 7: The Cpi and the Cost of Living
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131 Verified Questions
131 Flashcards
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Sample Questions
Q1) Based on the table above,the CPI for 2015 is
A)98.5.
B)102.5.
C)105.1.
D)100.
E)5.0 per cent.
Q2) To compare the price of a loaf of bread produced in 1993 with the price of a loaf produced in this year,you should compare the value of the bread in A)nominal quantity.
B)nominal prices.
C)real quantity.
D)CPI quantity.
E)real prices.
Q3) The reference base period for the CPI has an index number of A)1.
B)0.
C)100.
D)10.
E)1,000.
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Page 9
Chapter 8: Economic Growth
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138 Verified Questions
138 Flashcards
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Sample Questions
Q1) Labour productivity equals
A)the total production of labour.
B)the quantity of labour hours divided by real GDP.
C)real GDP divided by the amount of human capital.
D)real GDP.
E)real GDP per hour of labour.
Q2) If a country lacks ________,economic growth ________.
A)a proper incentive system;cannot occur
B)a democratic form of government;cannot occur
C)economic freedom;will increase at a faster pace
D)pure capitalism;will be slower compared to other countries
E)a proper incentive system;will occur at a pace suggested by the new growth theory
Q3) For a household,the opportunity cost of not working is the A)nominal wage rate.
B)demand for labour.
C)real wage rate.
D)cost of living.
E)price level.
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Chapter 9: Finance,saving and Investment
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157 Verified Questions
157 Flashcards
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Sample Questions
Q1) If there is no Ricardo-Barro effect,a government budget surplus ________ the supply of loanable funds and ________ equilibrium investment.
A)does not change;does not change
B)increases;decreases
C)decreases;decreases
D)increases;increases
E)decreases;increases
Q2) Net investment equals
A)new capital plus old capital.
B)gross investment plus depreciation.
C)the amount of national wealth.
D)capital plus depreciation.
E)gross investment minus depreciation.
Q3) Economists use the term "financial markets" to mean the markets in which
A)households supply their labour services.
B)the government borrows to fund any budget surplus.
C)firms get the funds that they use to buy physical capital.
D)firms purchase their physical capital.
E)firms supply their goods and services.
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Chapter 10: Money,the Price Level and Inflation
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213 Verified Questions
213 Flashcards
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Sample Questions
Q1) The demand for money increases and the demand for money curve shifts rightward if
A)the nominal interest rate increases.
B)the price level falls.
C)real GDP increases.
D)the inflation rate increases.
E)the real interest rate increases.
Q2) During an economic expansion,the demand for money ________ because ________.
A)does not change;people make more purchases with credit cards
B)increases;nominal GDP does not change
C)decreases;real GDP increases
D)decreases;nominal GDP increases
E)increases;real GDP increases
Q3) If the currency drain ratio is 0.2 and the desired reserve ratio is 0.03,the money multiplier is
A)3.23.
B)0.76.
C)5.22.
D)6.67.
E)4.46.
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Chapter 11: Aggregate Supply and Aggregate Demand
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176 Verified Questions
176 Flashcards
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Sample Questions
Q1) According to the AS-AD model,
A)the AS curve is always equal to potential GDP.
B)the equilibrium is where the AS curve crosses the AD curve,but the amount of real GDP at this point is not always equal to potential GDP.
C)a change in the amount of potential GDP is the only factor that shifts both the aggregate supply curve and the aggregate demand curve.
D)the aggregate quantity demanded is typically greater than the aggregate quantity supplied,thereby leading to inflation.
E)the aggregate quantity supplied is typically greater than the aggregate quantity demanded,thereby leading to unemployment.
Q2) When cost-push inflation starts,real GDP ________ and the price level ________.
A)decreases;rises
B)increases;falls
C)does not change;does not change
D)does not change;falls
E)decreases;falls
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Chapter 12: Aggregate Expenditure Multiplier
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189 Verified Questions
189 Flashcards
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Sample Questions
Q1) The figure above shows a nation's consumption function.If disposable income is $4 trillion,then the MPC is ________ and saving is ________.
A)positive;zero
B)negative;positive
C)negative;negative
D)positive;positive
E)positive;negative
Q2) During 2015,a country has consumption expenditures of $3.0 trillion,investment expenditures of $1.5 trillion,government expenditure of $1.5 trillion,exports of $1.0 trillion,and imports of $1.5 trillion.Aggregate expenditure for the country is
A)$7.0 trillion.
B)$5.5 trillion.
C)$8.5 trillion.
D)$6.0 trillion.
E)$6.5 trillion.
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14
Chapter 13: The Short-Run Policy Trade Off
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134 Verified Questions
134 Flashcards
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Sample Questions
Q1) If the economy is at full employment,then the inflation rate
A)exceeds the expected inflation rate.
B)is equal to zero.
C)can be anywhere on a short-run Phillips curve.
D)is less than the expected inflation rate.
E)is equal to the expected inflation rate.
Q2) Comparing the aggregate supply curve and the short-run Phillips curve,we see that they
A)each describe different parts of the economy.
B)both exist because the real wage rate is fixed in the short run.
C)both exist since money wages are flexible.
D)both exist because the money wage rate is fixed in the short run.
E)describe the same phenomena but contradict each other.
Q3) A country reports that its inflation rate and unemployment rate have both increased.These changes could be the result of
A)a movement downward along the short-run Phillips curve.
B)a leftward shift of the long-run Phillips curve.
C)a downward shift of the short-run Phillips curve.
D)a movement upward along the short-run Phillips curve.
E)an upward shift of the short-run Phillips curve.
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Chapter 14: Fiscal Policy
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148 Verified Questions
148 Flashcards
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Sample Questions
Q1) Which of the following are influences the budget has on potential GDP?
i.Government spending on infrastructure such as roads
ii.The collection of taxes
iii.Government spending on public goods to enhance productivity
A)i,ii and iii
B)i and ii
C)iii only
D)ii only
E)i only
Q2) If an economy is at an equilibrium with an inflationary gap,policymakers can use
A)discretionary fiscal policy and cut taxes.
B)automatic fiscal policy and cut taxes.
C)discretionary fiscal policy and increase government expenditure.
D)discretionary fiscal policy and decrease government expenditure.
E)automatic fiscal policy and increase government expenditure.
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Chapter 15: Monetary Policy
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108 Verified Questions
108 Flashcards
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Sample Questions
Q1) Which of the following are TRUE regarding Milton Friedman's k-percent money targeting rule?
i.Currently this policy is used by many policy makers.
ii.This rule sets the growth rate of the quantity of money independently of the economy's behaviour.
iii.For this policy to work well,the velocity of circulation must be stable.
A)iii only
B)i and ii
C)i only
D)ii only
E)ii and iii
Q2) In the short run,lowering the cash rate shifts the aggregate demand curve ________ so that real GDP ________ and the price level ________.
A)rightward;increases;rises B)leftward;decreases;rises C)leftward;decreases;falls
D)rightward;decreases;rises E)rightward;increases;falls
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Chapter 16: International Trade Policy
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122 Verified Questions
122 Flashcards
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Sample Questions
Q1) The above figure shows the Australian market for thongs.With international trade,the equilibrium price in Australia is ________ and Australia ________ thongs.
A)$14;imports
B)$14;does not trade
C)$12;imports
D)$12;exports
E)$12;does not trade
Q2) Suppose the world price of widgets is $5 each.If a widget-importing country imposed a $2 per widget tariff,what price would that country's consumers pay for widgets?
A)$10
B)$3
C)$7
D)$5
E)A price that is greater than $5 and less than $7
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18
Chapter 17: International Finance
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145 Verified Questions
145 Flashcards
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Sample Questions
Q1) Purchasing power parity can be used as
A)an indicator of how interest rates will change in the long run.
B)a short-term and long-term gauge of relative currency values.
C)an indicator of how interest rates will change in the short run.
D)a long-run gauge,but in the short run large deviations in currency values can exist.
E)a short-term gauge,but in the long run large deviations in currency values can exist.
Q2) Which of the following is a balance of payments account?
i.The current account.
ii.The past account.
iii.The capital and financial account.
A)i only
B)ii only
C)iii only
D)i and iii
E)i,ii and iii
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