Economics Unit 2

The Australian government's goal of equity in the distribution of income and wealth does not mean:

• that income should be divided totally evenly between individuals

• that poverty should be avoided

• that everyone should be able to access basic goods and services

• that everyone is entitled to basic living standards

Which of the following is not a leakage from the circular flow of income?

• Savings

• Investment

• Taxes

• Imports

An example of investment expenditure is:

• Payment for dry cleaning services

• Purchase of a coffee machine by a cafe

• Government expenditure on wages for Australian soldiers

• Payment of dividends to a Commonwealth Bank shareholder

Which of the following is an effect of globalisation on the environment?

• Increased pollution due to increased transportation of goods

• Rapid depletion of resources due to greater consumption

• Growing awareness of environmental issues via social media

• All of the above

Aggregate demand is comprised of:

• C + I + G + (X + M)

• C + Y + G + (X - M)

• C + I + G + (X - M)

• C + Y + G + (X + M)

The Lorenz Curve, Gini Coefficient and Henderson Poverty Lines are all measurements of?

• Poverty

• Poverty and Income equality

• Income equality

• Absolute poverty

Relative poverty is?

• Lower than absolute poverty

• The same as absolute poverty

• Is better for people in Australia than in Burkina Faso

• Higher than absolute poverty

Which statement is incorrect about the distribution of equivalised disposable income in these four countries?

• Alpha has the most uneven distribution of income

• The Gini coefficient for Delta would be 0.0

• The poorest 60% of households in Gamma would receive 25% of the income cake

• The richest 40% of Beta would receive 72% of of all equivalised disposable income

Economic growth refers to changes in the total...

• real value of all goods & services produced in a country

• prices of goods and services

• real value of all goods & services purchased in a country

• expenditure in the economy

How can the government try to change the unemployment rate without harming equity?

• Tighten welfare access

• Lower business taxes

• Increase personal income tax

• Increase business taxes