Multiple Choice Question (1 Viewer)

[michaeljennings]

Which of the following statements is appropriate if S+T+M is less than I+G+X
a) The federal budget is in surplus
b) Unemployment will result
c) Stocks will decrease
d) The economy will contract

 

[krnofdrg]

S+T+M= LEAKAGES

I+G+X= Injection

If injections>Leakages

It's not A since there is more spending then revenue (deficit or smaller surplus)..

B-> Injections is greater meaning higher AD, so high economic activity. nope.

D economy will not contract.

So it's c

 

[michaeljennings]

Could you explain what 'stocks will decrease' means? Cos a friend and I think that this question (written by someone at PLC for their trial paper in 2001) was written wrong and they realised it during the exam and changed it from 'is less than' to 'is more than' because they marked the correct answer as D, which cant be true with the original question

 

[michaeljennings]

Here is another question

Which of the following would result in an increase in Australia’s international
competitiveness?
A.) Appreciation of the $A
B.) Falling real wage rates in the Australian economy
C.) Rising inflation rates in the Australian economy
D.) Increased levels of protection in the Australian economy

 

[krnofdrg]

Could you explain what 'stocks will decrease' means? Cos a friend and I think that this question (written by someone at PLC for their trial paper in 2001) was written wrong and they realised it during the exam and changed it from 'is less than' to 'is more than' because they marked the correct answer as D, which cant be true with the original question

Im not sure what they mean by stocks also. ?????

BUT if S+T+M>I+G+X then the economy will of course contract. More leakages then injections so yes it would be D.

 

[krnofdrg]

Here is another question

Which of the following would result in an increase in Australia’s international
competitiveness?
A.) Appreciation of the $A
B.) Falling real wage rates in the Australian economy
C.) Rising inflation rates in the Australian economy
D.) Increased levels of protection in the Australian economy

Never A. Remember more for our customers overseas, more expensive then we cannot compete.

Never C. Inflation-> Higher prices meaning our exports are more expensive. (To another country this was be imported inflation)

Never D. Protection raises prices and distorts efficient allocation of resources decreasing competiveness. (Our micro policies are aimed at reducing these to improve int. competiveness, efficiency and productivity).

B is most correct. (China for example is so competitive because their real wage rates are so low, Our wage rates are too high in Aus. so remember our manufacturing industries are pretty weak .

Labour is also an input remember to producing goods, so cheaper it is. Overall the product is cheaper.

 

[michaeljennings]

Labour is also an input remember to producing goods, so cheaper it is. Overall the product is cheaper.

Ah yes this was what I was looking for thank you so much, rep for you =)

 

[krnofdrg]

Ah yes this was what I was looking for thank you so much, rep for you =)

Goood luck Baulko XDDDDDD woah

superb ranks you got.

Can you help me for Ancient?? PP