Australia's Economy

Australia has what type of economic system?

• Mixed

• Market

• Command

• Mixed/Market

Using this chart, you can conclude that in Australia's economy

• buyers and sellers determine what goods are made.

• private property is rationed out according to need.

• the national government owns most of the land resources.

• the provincial governments own most of the capital resources.

Australia has one of the most advanced market economies in the world, meaning the majority of economic decisions are made by

• their executive branch of government.

• a central economic planning committee.

• their legislative branch of government.

• the producers and consumers of products.

Which of these would Australia be MOST likely to export?

• automobiles

• corn

• doctors

• gold

How can the government of Australia BEST contribute to the overall human capital of its citizens and improve its economy?

• by investing in the Australian transportation system

• by investing in the Australian public education system

• by reducing the income tax rate on Australian citizens

• by reducing the corporate tax rate on Australian companies

What effect will large-scale investment in capital goods have on an economy?

• It will increase economic specialization.

• It will increase the unemployment rate.

• It will increase average education levels.

• It will increase the gross domestic product.

What will occur if large manufactures in Australia invest heavily in capital goods?

• Australia's gross domestic product will rise because those investments will reduce the competition for the manufacturers' goods.

• Australia’s gross domestic product will fall because those manufacturers can now fire unproductive workers.

• Australia’s gross domestic product will rise because those manufacturers can produce goods more efficiently.

• Australia’s gross domestic product will fall because those investments will cause the manufacturers to take out loans.

Which fact BEST supports the conclusion that natural resources are important to the strength of mixed-market economies?

• Australia is one of the top twenty largest economies in the world.

• Over half of the Australian economy is a part of the service sector.

• The top three exports of Australia are iron ore, coal, and natural gas.

• Australia has the largest stock exchange in the South Pacific and Oceania.

Australia has a very high rate of literacy. What is MOST LIKELY also true of Australia?

• Australia has a high level of unemployment.

• Australians have a high standard of living.

• Australians pay a high income tax rate.

• Australia has a high inflation rate.

Use the information to answer the question.

Iron Kangaroo is a large mining corporation based in Western Australia. Over the past several years, the company’s mines have become less productive and mines are frequently closed due to broken equipment.

What is the BEST way for Iron Kangaroo to improve the productivity of the mines?

• The company should hire additional workers.

• The company should invest in new capital goods.

• The company should acquire more natural resources.

• The company should improve its workers’ human capital.