Australian Economics

Which natural resource is important to Australia’s economy?

• bauxite

• modern factories

• excellent highways

• education of workers

Which is true about the economic system in Australia?

• It is difficult for individuals to start their own businesses.

• Government rules and laws make starting a business in Australia very risky.

• Laws are in place to protect the rights and property of people who want to start their own businesses in Australia.

• Few Australians are willing to use their money and time to start businesses because the government is likely to take their business away.

Which is an example of a capital good?

• gold

• health care

• a factory

• a diamond

Which action by the Australian government would make its economy less like a mixed economy and more like a pure market economy?

• a limit on salt imports of 80 tons per year

• a 10 percent tax on all wool bought from European countries

• the decision to let supply and demand set the price of gasoline

• the addition of a $500 fee for all automobiles imported into the country

Because most economies have characteristics of the command and market economy, we say they are

• communist.

• traditional.

• free.

• mixed.

Australia’s early Aborigines made economic decisions based on customs or beliefs . This would be an example of a

• market economy.

• free enterprise system.

• traditional economy.

• command economy.

What has helped Australia to have a high GDP?

• poor healthcare

• modern factories and technology

• natural resources that are hard to develop

• workers with low-paying jobs

Tariffs and quotas are alike because they both

• restrict or limit trade between countries.

• completely stop trade between countries.

• increase trade between countries.

• make trading a lot easier between countries.

Which trade barrier discourages trade by placing a tax on foreign goods?

• Embargo

• Quota

• Subsidy

• Tariff

What is an important role of entrepreneurs in the Australian economy?

• They sell stocks in the stock market.

• They provide new jobs for Australian workers.

• They shut down factories that are not making much money.

• They take care of sick patients.