Year 12 Economics

Which of the following best explains the benefits of globalization?

• Globalization creates a better environment for businesses to profit in through the loss of consumer surplus

• Globalization promotes ethical behaviour

• Globalization increases innovation and development

• Globalization is driven by increased technology

Which of the following is not an argument for trade liberalization?

• The infant industry argument

• The resource allocation argument

• The most favored nation argument

• The innovation argument

The World Trade Organisation’s key purpose is to:

• Promote trade by working to improve global monetary cooperation

• Promote trade by ensuring that rules to protect nations exist and are followed

• Promote trade by providing technical assistance and advice to developing nations

• Promote trade by assisting nations to form Free Trade Agreements

The key role of the International Monetary Fund is to:

• Ensure that trade flows smoothly, predictably and freely

• Provide low interest loans to developing nations to allow them to develop industries for trade

• Foster global monetary cooperation, secure financial stability and promote trade

• Promote global, regional and bilateral trade agreements

Which of the following trading blocs is Australia not a member of?

• ASEAN

• OPEC

• TPP

• The Cairns Group

Which of the following FTAs is the most recent for Australia?

• Australia-United Kingdom FTA

• Peru-Australia FTA

• Indonesia-Australia FTA

• China-Australia FTA

Which of the following is a non-economic argument for protection?

• Anti-dumping

• Infant industry

• Diversification

• National defense

Which of the following are Australia’s top four export partners:

• China, Hong Kong, United Kingdom and the USA

• China, Japan, Germany and the USA

• China, South Korea, Japan and the USA

• China, Japan, Germany and Hong Kong

Which of the following is not likely to be associated with globalization?

• Higher levels of protection against cheap foreign imports

• An increase in exports as a proportion of a nations’ GDP

• Growth in the influence and power of multinational corporations

• Higher rates of economic growth for nations who increase their trade openness

Australia’s international competitiveness will increase if:

• Multilateral FTAs are created and implemented

• Wages in Australia rise at a faster rate than productivity

• The value of the Australian dollar appreciates relative to other currencies

• Economic growth is faster in Australia than other OECD nations