The Global Economy Revision Quiz

Why do countries trade?

• To access better quality products

• To access goods and services the country can't produce

• To sell excess production

• All of the above

Goods and services manufactured overseas but bought by Australians are called

• Exports

• Imports

• Imputed goods

• Substitute goods

One of the positive effects of greater interconnectedness of countries is that

• economic growth in one country will usually happen at the expense of its trading partners

• a recession in one country can usually be prevented from spreading to other countries

• natural disasters in overseas countries prevent those countries from importing our valuable resources

• as a developing country grow, it imports large amounts of raw materials from other countries

A trade deficit is where the

• value of imports exceeds the value of exports

• value of exports exceeds the value of imports

• value of exports matches the value of imports

A trade surplus is where the

• value of imports exceeds the value of exports

• value of exports exceeds the value of imports

• value of exports matches the value of imports

Identify two reasons why Australia imports goods and services from overseas.

• To support smaller, local businesses

• A particular product may not be available in the domestic market

• To increase employment opportunities for Australian workers

• Raw materials needed for the production of a particular product may not be in enough supply to fulfil the demand

What is a supply chain?

• 1. The land, labour, capital and enterprise used to produce goods and services.

• 1. A market for trading shares in listed companies.

• 1. The sequence of processes involved in the manufacture and distribution of a product.

• 1. A type of free trade agreement.

What is fiscal policy?

• The RBAs management of interest rates and money supply

• The government's use of spending and taxation to influence the economy

• The regulate of trade between countries

• The policies related to environmental protection and sustainability

True or False: The rate of economic growth in China has remained constant since the 1980s.

• True

• False

Define ‘globalisation’.

• 1. The growing dependence of countries

• 1. A period of decline in economic growth when GDP decreases

• 1. The process of growing interdependence between countries

• 1. All of the above