Introduction to International Economics

Open Ended

What is one key concept you learned about international trade in this lesson?

Open Ended

Define the following terms:

Circular Flow of income model

Exchange rate

Foreign Sector

Internal balance

Open Economy

Multiple Choice

According to the definition provided, what is the main focus of international economics?

• Understanding the causes and consequences of economic interaction between countries

• Studying only domestic economic policies

• Focusing on the history of economics

• Analyzing only the financial sector

Open Ended

Explain how equilibrium is achieved in the circular flow of income model using the given equations.

Multiple Choice

Which of the following are considered leakages and injections in the circular flow of income model?

• Savings and imports are leakages; investment and exports are injections

• Taxes and exports are leakages; savings and imports are injections

• Investment and imports are leakages; savings and exports are injections

• Savings and exports are leakages; taxes and imports are injections

Open Ended

Recall why import payments are a leakage from the circular flow of income model and export an injection into it?

Open Ended

Describe why Australia is called a small, open economy.

Multiple Choice

Which of the following best describes capital in economics?

• Natural resources such as land and minerals

• Human effort used in production

• Human-made resources used to produce goods and services

• The total income earned by a country

Multiple Choice

Which of the following best defines standard of living?

• A. The amount of goods a country exports
  

• B. A measure of lifestyle quality based on income and access to goods and services
  

• C. The total production capacity of a nation
  

• D. The number of hours people work per week
  

Multiple Choice

What does factor endowment refer to?

• A. The distribution of wealth among citizens
  

• B. The government’s tax and spending power
  

• C. The supply of land, labour, capital, and enterprise within a country
  

• D. The profit earned by firms in an economy
  

Multiple Choice

Which of the following best describes a free-enterprise economy?

• A. The government owns and controls all businesses
  

• B. Prices are set by a central planning authority
  

• C. Individuals and businesses can operate freely with limited government control
  

• D. All resources are distributed equally by the state
  

Multiple Choice

What does Gross Domestic Product (GDP) measure?

• A. The total population of a country
  

• B. The total value of final goods and services produced in an economy
  

• C. The amount of goods exported and imported
  

• D. The total government revenue from taxes
  

Multiple Choice

What does human capital refer to?

• The natural resources of a nation

• Machinery used in factories

• The total amount of physical money in a country

• The skills, knowledge and experience of people

Open Ended

Why should it be impossible to have too few jobs in an open, market economy?

Open Ended

After learning about international trade and related concepts, what is one question you still have or a topic you would like to explore further?

Multiple Select

Which of the following factors could contribute to an 'everything crisis' in a country like Australia?

• Rising unemployment rates

• Stable economic growth

• Supply chain disruptions

• Decreasing inflation

Multiple Choice

Which of the following terms is most closely related to the concept of international trade?

• Circular Flow of income model

• Exchange rate

• Foreign Sector

• Internal balance