mreditor16
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- Joined
- Apr 4, 2014
- Messages
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- HSC
- 2014
Hi All,
Here are some sample multiple choice questions, some I made myself and some I found from various resources. Hope they help! Note: The next post has the questions with the answers
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1. Which of the following would be most likely to increase structural unemployment in the manufacturing sector of the Australian economy?
(A) An increase in tariff protection for manufacturing firms
(B) An increase in government subsidies to manufacturing firms
(C) An increase in global demand for Australian manufactured goods
(D) An increase in export prices for export-oriented manufacturing firms
2. How do economists measure the distribution of income and wealth?
(A) Gini coefficient curve
(B) Long run Phillips Curve
(C) Lorenz Curve
(D) Short run Phillips Curve
3. The Reserve Bank of Australia buys Commonwealth Government Securities. What is the most likely effect on the supply of cash in Exchange Settlement Accounts and the cash rate?
(A) The supply of cash in ESAs will decrease and the cash rate will decrease
(B) The supply of cash in ESAs will increase and the cash rate will decrease
(C) The supply of cash in ESAs will decrease and the cash rate will increase
(D) The supply of cash in ESAs will increase and the cash rate will increase
4. What would be the most likely outcome of increased global economic integration?
(A) Increased financial deregulation in global capital markets
(B) Higher levels of tariff protection in order to protect local producers from excessive levels of overseas competition
(C) Reduced levels of financial contagion during global financial crises
(D) Higher levels of global inflation due to increased production activity
5. Which of the following would result in market failure?
(A) Increased demand for mining resources leads to an increase in market prices
(B) The supply of doctors to a regional hospital is insufficient to meet the demand for hospital beds
(C) A local cement manufacturer increases the emission of greenhouse gases into the atmosphere due to the abolition of the carbon tax
(D) People stop driving their cars to a local shopping centre due to the lack of available parking
6. Which of the following is classified as a government economic forum?
(A) European Union (EU)
(B) World Bank
(C) ASEAN
(D) Group of Twenty (G20)
7. The RBA decides to alter the setting of monetary policy by adopting an expansionary stance. What is the likely impact on the Australian economy?
(A) The Australian dollar will appreciate and aggregate demand will increase.
(B) The Australian dollar will appreciate and aggregate demand will fall.
(C) The Australian dollar will depreciate and aggregate demand will increase.
(D) The Australian dollar will depreciate and aggregate demand will fall.
8. How would a withdrawal of funds from Australia by US investors be recorded in Australia’s Balance of Payments?
(A) As a debit on the Australian current account
(B) As a credit on the Australian current account
(C) As a debit on the Australian capital and financial account
(D) As a debit on the Australian capital and financial account
9. Which of the following would be an example of foreign direct investment?
(A) A European corporation increases its purchases of Australian government securities
(B) An Australian textiles manufacturer buys a controlling interest in an Indonesian garment factory
(C) A Mexican entrepreneur takes out a number of option and swap contracts in order to hedge against exchange rate risk
(D) The RBA sells Australian dollars to foreign central banks in return for foreign assets
10. What type of arrangement would best represent a managed exchange rate system?
(A) A currency is fixed by the central bank to another currency, usually on a daily basis
(B) A currency is pegged or adjusted to variations in a major trading partner’s currency
(C) The central bank intervenes occasionally in the foreign exchange market to smooth out currency fluctuations
(D) The value of a currency is determined by the forces of supply and demand
11. The following data is for the labour market of a hypothetical economy – 20 million employed persons, 1 million unemployed persons and the population 15 years and over is 30 million. What is the participation rate in this economy?
(A) 70%
(B) 66.6%
(C) 6.6%
(D) 5%
12. All other things being equal, which of the following changes in government economic policy could cause an economy’s aggregate demand curve to shift to the right?
(A) Lower interest rates and increased government expenditure
(B) Higher interest rates and increased government expenditure
(C) Lower interest rates and decreased government expenditure
(D) Higher interest rates and decreased government expenditure
13. All other things being equal, which of the following factors could cause an economy’s aggregate supply curve to shift to the right?
(A) The use of expansionary monetary policy by the government
(B) The use of a budget deficit by the government
(C) An improvement in the productivity of labour and capital
(D) An increase in spending on investment by business
14. Which of the following would most likely rise in Australia as a result of an upturn in international and regional business cycles?
(A) Interest rates
(B) GDP growth rate
(C) Inflation rate
(D) Unemployment rate
15. Which of the following best explains a movement in Australia’s terms of trade index from 109.5 to 92.3?
(A) A fall in the volume of imports relative to exports
(B) A fall in the volume of exports relative to imports
(C) A rise in import prices relative to export prices
(D) A rise in export prices relative to import prices
16. How would profit earned by Australian enterprises operating overseas be recorded in Australia’s Balance of Payments?
(A) As a credit item on Net Primary Income in the Current Account
(B) As a debit item on Net Primary Income in the Current Account
(C) As a credit item on the Financial Account
(D) As a debit item on the Financial Account
17. Which of the following is most likely to increase Australia’s international competitiveness?
(A) Structural change and higher interest rates in Australia
(B) Lower labour costs and improved infrastructure in Australia
(C) Lower inflation in Australia and reduced import quotas on foreign cars
(D) Productivity growth in Australia and an appreciation of the Australian dollar
18. Which of the following international organisations would assist a country whose economy is expecting external stability issues?
(A) APEC
(B) WTO
(C) IMF
(D) World Bank
19. What is the actions of the RBA buying or selling foreign currency known as?
(A) Monetary policy
(B) Domestic Market Operations
(C) Dirtying the float
(D) Pegging the rate
20. The globalisation of the production process (i.e. the production of goods in different stages in different countries) is known as:
(A) Horizontal specialisation
(B) Vertical specialisation
(C) Division of labour
(D) Economies of scale
21. What are the main characteristics of the boom stage of the international business cycle?
(A) Greater convergence of the world’s economic systems to market capitalism
(B) Increased levels of protection and trade disputes
(C) Rising levels of world inflation and rates of unemployment
(D) Rising world GDP, commodity prices, trade and financial flows
22. What is a possible disadvantage of a bilateral trade agreement?
(A) Tariffs are reduced and subsidies removed on traded goods
(B) Trade is liberalised if both countries reduce border restrictions
(C) Specialisation and trade may not be based on comparative advantage
(D) Foreign investment as well as trade flows may increase
Here are some sample multiple choice questions, some I made myself and some I found from various resources. Hope they help! Note: The next post has the questions with the answers
----------------------------------------
1. Which of the following would be most likely to increase structural unemployment in the manufacturing sector of the Australian economy?
(A) An increase in tariff protection for manufacturing firms
(B) An increase in government subsidies to manufacturing firms
(C) An increase in global demand for Australian manufactured goods
(D) An increase in export prices for export-oriented manufacturing firms
2. How do economists measure the distribution of income and wealth?
(A) Gini coefficient curve
(B) Long run Phillips Curve
(C) Lorenz Curve
(D) Short run Phillips Curve
3. The Reserve Bank of Australia buys Commonwealth Government Securities. What is the most likely effect on the supply of cash in Exchange Settlement Accounts and the cash rate?
(A) The supply of cash in ESAs will decrease and the cash rate will decrease
(B) The supply of cash in ESAs will increase and the cash rate will decrease
(C) The supply of cash in ESAs will decrease and the cash rate will increase
(D) The supply of cash in ESAs will increase and the cash rate will increase
4. What would be the most likely outcome of increased global economic integration?
(A) Increased financial deregulation in global capital markets
(B) Higher levels of tariff protection in order to protect local producers from excessive levels of overseas competition
(C) Reduced levels of financial contagion during global financial crises
(D) Higher levels of global inflation due to increased production activity
5. Which of the following would result in market failure?
(A) Increased demand for mining resources leads to an increase in market prices
(B) The supply of doctors to a regional hospital is insufficient to meet the demand for hospital beds
(C) A local cement manufacturer increases the emission of greenhouse gases into the atmosphere due to the abolition of the carbon tax
(D) People stop driving their cars to a local shopping centre due to the lack of available parking
6. Which of the following is classified as a government economic forum?
(A) European Union (EU)
(B) World Bank
(C) ASEAN
(D) Group of Twenty (G20)
7. The RBA decides to alter the setting of monetary policy by adopting an expansionary stance. What is the likely impact on the Australian economy?
(A) The Australian dollar will appreciate and aggregate demand will increase.
(B) The Australian dollar will appreciate and aggregate demand will fall.
(C) The Australian dollar will depreciate and aggregate demand will increase.
(D) The Australian dollar will depreciate and aggregate demand will fall.
8. How would a withdrawal of funds from Australia by US investors be recorded in Australia’s Balance of Payments?
(A) As a debit on the Australian current account
(B) As a credit on the Australian current account
(C) As a debit on the Australian capital and financial account
(D) As a debit on the Australian capital and financial account
9. Which of the following would be an example of foreign direct investment?
(A) A European corporation increases its purchases of Australian government securities
(B) An Australian textiles manufacturer buys a controlling interest in an Indonesian garment factory
(C) A Mexican entrepreneur takes out a number of option and swap contracts in order to hedge against exchange rate risk
(D) The RBA sells Australian dollars to foreign central banks in return for foreign assets
10. What type of arrangement would best represent a managed exchange rate system?
(A) A currency is fixed by the central bank to another currency, usually on a daily basis
(B) A currency is pegged or adjusted to variations in a major trading partner’s currency
(C) The central bank intervenes occasionally in the foreign exchange market to smooth out currency fluctuations
(D) The value of a currency is determined by the forces of supply and demand
11. The following data is for the labour market of a hypothetical economy – 20 million employed persons, 1 million unemployed persons and the population 15 years and over is 30 million. What is the participation rate in this economy?
(A) 70%
(B) 66.6%
(C) 6.6%
(D) 5%
12. All other things being equal, which of the following changes in government economic policy could cause an economy’s aggregate demand curve to shift to the right?
(A) Lower interest rates and increased government expenditure
(B) Higher interest rates and increased government expenditure
(C) Lower interest rates and decreased government expenditure
(D) Higher interest rates and decreased government expenditure
13. All other things being equal, which of the following factors could cause an economy’s aggregate supply curve to shift to the right?
(A) The use of expansionary monetary policy by the government
(B) The use of a budget deficit by the government
(C) An improvement in the productivity of labour and capital
(D) An increase in spending on investment by business
14. Which of the following would most likely rise in Australia as a result of an upturn in international and regional business cycles?
(A) Interest rates
(B) GDP growth rate
(C) Inflation rate
(D) Unemployment rate
15. Which of the following best explains a movement in Australia’s terms of trade index from 109.5 to 92.3?
(A) A fall in the volume of imports relative to exports
(B) A fall in the volume of exports relative to imports
(C) A rise in import prices relative to export prices
(D) A rise in export prices relative to import prices
16. How would profit earned by Australian enterprises operating overseas be recorded in Australia’s Balance of Payments?
(A) As a credit item on Net Primary Income in the Current Account
(B) As a debit item on Net Primary Income in the Current Account
(C) As a credit item on the Financial Account
(D) As a debit item on the Financial Account
17. Which of the following is most likely to increase Australia’s international competitiveness?
(A) Structural change and higher interest rates in Australia
(B) Lower labour costs and improved infrastructure in Australia
(C) Lower inflation in Australia and reduced import quotas on foreign cars
(D) Productivity growth in Australia and an appreciation of the Australian dollar
18. Which of the following international organisations would assist a country whose economy is expecting external stability issues?
(A) APEC
(B) WTO
(C) IMF
(D) World Bank
19. What is the actions of the RBA buying or selling foreign currency known as?
(A) Monetary policy
(B) Domestic Market Operations
(C) Dirtying the float
(D) Pegging the rate
20. The globalisation of the production process (i.e. the production of goods in different stages in different countries) is known as:
(A) Horizontal specialisation
(B) Vertical specialisation
(C) Division of labour
(D) Economies of scale
21. What are the main characteristics of the boom stage of the international business cycle?
(A) Greater convergence of the world’s economic systems to market capitalism
(B) Increased levels of protection and trade disputes
(C) Rising levels of world inflation and rates of unemployment
(D) Rising world GDP, commodity prices, trade and financial flows
22. What is a possible disadvantage of a bilateral trade agreement?
(A) Tariffs are reduced and subsidies removed on traded goods
(B) Trade is liberalised if both countries reduce border restrictions
(C) Specialisation and trade may not be based on comparative advantage
(D) Foreign investment as well as trade flows may increase
