Australia: Government and Economics

Why do Australians have to exchange currency in order to trade with other countries?

• Australian banks need the money.

• It makes sure that buyers and sellers are treated fairly.

• Transporting goods to other countries is expensive and time-consuming.

• Businesses in other countries use their own currency, not Australian dollars.

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 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.

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.