Australia Economy

Which of the following BEST characterizes Australia's economic system?

• It is a mixed economy with a relatively low gross domestic product.

• It is a mixed economy with a relatively high gross domestic product.

• It is a command economy with a relatively low gross domestic product.

• It is a command economy with a relatively high gross domestic product.

Why do countries engage in specialization and trade?

• to protect their economies from foreign influences

• to gain control over the economies of other countries

• to earn the highest profits possible on goods they produce

• to obtain the goods and services they need in the most efficient way

Australia and several other countries have free trade agreements. This means that they

• charge a tax on imported goods.

• are allowed to trade with each other.

• exchange goods without restrictions.

• ship goods between countries at no cost.

The literacy rate in Australia is 99%. What does this mean?

• It means that 99% of all people in Australia over the age of 15 can read and write.

• It means that 99% of all people in Australia have read a book in the past year.

• It means that 99% of all people in Australia are high school graduates.

• It means that 99% of all people in Australia enjoy reading

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

What public service is linked to higher human capital in a country?

• a public education system

• a public healthcare system

• a public sanitation system

• a public transportation system

What will happen to Australia's gross domestic product if the nation's large manufacturers invest heavily in capital goods?

• It will rise because those investments will help the manufacturers' employees learn important skills.

• It will rise because those investments will enable the manufacturers produce goods more efficiently.

• It will fall because those investments will require the manufacturers to hire more workers.

• It will fall because those investments will reduce competition between the manufacturers

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 invest in new capital goods.

• The company should acquire more natural resources.

• The company should improve its workers' human capital.

What does Australia's gross domestic product depend on the MOST?

• the export of natural resources

• the import of natural resources

• the export of manufactured goods

• the import of manufactured goods

Australia creates about 75% of its electricity using what type of fuel, of which Australia has an abundant domestic supply?

• oil

• coal

• biomass

• natural gas