multiple choice questions help !! (1 Viewer)

[lanamariie]

what happens to the current account when the terms of trade improve?
a) exports will buy less imports
b) exports will buy more imports
c) the current account moves into surplus
d) the current account moves into deficit

what happens to real GDP if aggregate supply is greater than aggregate demand?
a)the economy will expand
b)the economy will contract
c) there will be no change to the level of real GDP
d) money GDP will increase

what is the most useful form of national income for measuring the economic welfare of a country?
a) GDP at constant prices
b) GDP at current prices
c) GDP per capita at constant prices
d) GDP per capita at current prices

what is the main factor that influences a countrys external stability
a) the balance of payments
b) the CAD
c) the current account surplus
d) the balance of trade

which of the following would improve international competitiveness?
a) reduced costs of production, increased productiivity and a fall in the $A
b) increased costs of production, increased productiivity and a fall in the $A
c) reduced costs of production, decreased productiivity and a fall in the $A
d) reduced costs of production, increased productiivity and a rise in the $A

which of the following indicates a trend towards greater globalisation?
a) increases in the volatility of the world interest rates
b) increases iin bi-lateral agreements between nations
c) increases in the value of the global trade as a proportion of total output
d) increases in the growth rates of developing economies

when will real income increase?
a) prices rise faster than productivity
b) prices fall faster than consumption
c) prices rise slower than money income
d) prices rise slower than money income

which of the following is a possible cause of inflation
a) labour skill shortages
b) increasing productivity
c) depreciating Asutralian dollar
d) a rise in the level of consumption spending

other things being equal, which one of the following government policies is most likely to increase the inequality of income in the asutralian economy?
a) a more progressive income tax
b) a reduction in the cost of lower income learners
c) increased rebates to lower income earners
d) a heavier reliance on regressive taxation

which of the following would cause an increase in the labour force participation rate?
a) an increase in the school retention rates
b) an increase in the number of mothers involved in domestic duties
c) a decline in the number of hidden unemployed
d) an economy moving into recession

what effect would the shift of the lorenz curve have on the gini-coefficient if it moved closer to the line of perfect equality?
a) the gini-coefficient would increase and income inequality would rise
b) the gini-coefficient would decrease and income inequality would rise
c) the gini-coefficient would decrease and income inequality would fall
d) the gini-coefficient would increase and income inequality would fall


please help with these you guys !! studying for exams and got stuck on them please help !!

 

[lanamariie]

can anyone please help me if you just give me the answers ill be able understand why ! and if you can explain it'll be great too !! please 1

 

[Coookies]

THESE ARE JUST MY GUESSES, I AM NOT 100% SURE ANY OF THEM ARE RIGHT

what happens to the current account when the terms of trade improve?
a) exports will buy less imports
b) exports will buy more imports
c) the current account moves into surplus
d) the current account moves into deficit
when terms of trade improves, it means we are exporting more than importing therefore saving/making more money there CA goes into surplus

what happens to real GDP if aggregate supply is greater than aggregate demand?
a)the economy will expand
b)the economy will contract
c) there will be no change to the level of real GDP
d) money GDP will increase
when supply is greater than demand, it means there is an excess supply so you are making g/s and not getting any returns for it so you've pretty much wasted the money in making it

what is the most useful form of national income for measuring the economic welfare of a country?
a) GDP at constant prices
b) GDP at current prices
c) GDP per capita at constant prices
d) GDP per capita at current prices

I'm not sure what "constant" and "current" prices are but I'm sure its GDP per capita

what is the main factor that influences a countrys external stability
a) the balance of payments
b) the CAD
c) the current account surplus
d) the balance of trade

not sure about this one, but I'm guessing its trade because its related to external lol

which of the following would improve international competitiveness?
a) reduced costs of production, increased productiivity and a fall in the $A
b) increased costs of production, increased productiivity and a fall in the $A
c) reduced costs of production, decreased productiivity and a fall in the $A
d) reduced costs of production, increased productiivity and a rise in the $A
obviously reduced costs of production and increased productivity will improve international competitiveness because it'll be cheaper. A fall in the $A will improve international competitiveness because then our dollar will be cheaper thus making it more attractive for foreigners to buy our g/s, making us more competitive

which of the following indicates a trend towards greater globalisation?
a) increases in the volatility of the world interest rates
b) increases iin bi-lateral agreements between nations
c) increases in the value of the global trade as a proportion of total output
d) increases in the growth rates of developing economies
this could be b or c, I'm not sure. But I chose b because globalisation = integrating and agreements = integrating

when will real income increase?
a) prices rise faster than productivity
b) prices fall faster than consumption
c) prices rise slower than money income
d) prices rise slower than money income

real income is what you actually have after tax and such (i think) so if price(inflation) rises SLOWER than what you earn then you have more real income

which of the following is a possible cause of inflation
a) labour skill shortages
b) increasing productivity
c) depreciating Asutralian dollar
d) a rise in the level of consumption spending

i think its d because spending = demand and when demand increases, prices increase (because they can, because people want the g/s)

other things being equal, which one of the following government policies is most likely to increase the inequality of income in the asutralian economy?
a) a more progressive income tax
b) a reduction in the cost of lower income learners
c) increased rebates to lower income earners
d) a heavier reliance on regressive taxation
Im not too sure about this one but I guessed d because reading from wikipedia, regressive taxation has a greater burden on poorer people so therefore increasing income inequality

which of the following would cause an increase in the labour force participation rate?
a) an increase in the school retention rates
b) an increase in the number of mothers involved in domestic duties
c) a decline in the number of hidden unemployed
d) an economy moving into recession
labour force participation rate includes people 15+ (and under 65) that are actively seeking work. So if more students (most likely 15+) drop out of school, they will actively seek for work (sometimes) therefore increasing the labour force participation rate

what effect would the shift of the lorenz curve have on the gini-coefficient if it moved closer to the line of perfect equality?
a) the gini-coefficient would increase and income inequality would rise
b) the gini-coefficient would decrease and income inequality would rise
c) the gini-coefficient would decrease and income inequality would fall
d) the gini-coefficient would increase and income inequality would fall
gini coefficient is from 0 (the least inequality) to 1(the most inequality). The line of perfect equality is diagonal, going right. The lorenz curve is below and to the right of this line so to move close to this line, the gini coefficient would decrease (going closer to zero, aka perfect equality) and the income equality will decrease (because its pretty much "perfect")

 

[lanamariie]

thnak you so muchh !!

 

[Coookies]

No problem

Are there any you don't agree with? We can discuss them

 

[deswa1]

Going off what cookies got- I'll just put the ones I'll put something different for:

what happens to the current account when the terms of trade improve?
a) exports will buy less imports
b) exports will buy more imports
c) the current account moves into surplus
d) the current account moves into deficit
Probs this but seriously crap question. The current account will improve due to the BOGS improving but we don't know if it'll go to surplus. b is the only truly correct answer but thats not the current account

what is the main factor that influences a countrys external stability
a) the balance of payments
b) the CAD
c) the current account surplus
d) the balance of trade


which of the following indicates a trend towards greater globalisation?
a) increases in the volatility of the world interest rates
b) increases iin bi-lateral agreements between nations
c) increases in the value of the global trade as a proportion of total output
d) increases in the growth rates of developing economies
Both b and c are sorta correct. c is more correct -> increasing trade is a definite indicator of globalisation whilst bilateral trade often leads to things like trade diversion rather than trade creation.


which of the following is a possible cause of inflation
a) labour skill shortages
b) increasing productivity
c) depreciating Asutralian dollar
d) a rise in the level of consumption spending

Lower $AUD=imports more expensive -> import inflation


which of the following would cause an increase in the labour force participation rate?
a) an increase in the school retention rates
b) an increase in the number of mothers involved in domestic duties
c) a decline in the number of hidden unemployed
d) an economy moving into recession
Hidden unemployed are people that just don't fit the technical definition of unemployed-> if this number went down, they would enter the workforce, increasing the LFPR. Also, a and b defs lower the LFPR and in d, the LFPR is lowered because workers become discouraged about economic conditions and drop out of the labour force

what effect would the shift of the lorenz curve have on the gini-coefficient if it moved closer to the line of perfect equality?
a) the gini-coefficient would increase and income inequality would rise
b) the gini-coefficient would decrease and income inequality would rise
c) the gini-coefficient would decrease and income inequality would fall
d) the gini-coefficient would increase and income inequality would fall

Closer to equality=less inequality=lower Gini

 

[Hot potato]

Re: economics multiple choice questions help !! URGENT !!

going off the top of my head
b
b
c
b
a
c
c or d, youve given both options as the same
this one could be a or c, "a" will result in firms paying higher wages to attract workers resulting in cost push inflation. "c" could result in imported inflation as you have to pay more for imports
d
c
c

 

[hayhay2012]

Re: economics multiple choice questions help !! URGENT !!

noone help this person, they are cheating
these were the multiple choice questions from the cssa paper, which the op is obviously trying to obtain the answer to before taking the exam

 

[lanamariie]

these were practice multiple choice questions given to me to practice for upcoming exams.. I asked for answers to see if what i put was correct, and to have an understanding of why i got it wrong if i did. I dont even know what cssa is ? and how would i know what would be coming in an exam before i sit it ?



Edit: okaay i just realised what you meant by cssa :/ but honestly how could i possible cheat :S ?