Australia Government and Economics

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

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.

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.

Which is an example of investing in capital goods by a company?

• providing health care for workers

• providing classes for workers to learn new skills

• keeping an old machine to see if it will last longer

• buying new computers to build products more quickly

Who sets the price for goods in Australia?

• Buyers and sellers agree upon price.

• The governor-general sets prices for most goods.

• Parliament sets a price for all goods in the country.

• Prices for goods are set based on customs and beliefs of the Aborigines.

How is the leader chosen in a parliamentary democracy?

• by the people

• by the monarch

• by the courts

• by the parliament

Which position is the head (leader) of government of Australia?

• Lord

• President

• Queen/King

• Prime Minister