Economic Quiz

What is the role of the Organisation for Economic Co-operation and Development (OECD)?

• To provide interest-free loans to developing economies

• To promote sustainable growth and employment for member countries

• To boost global financial liquidity during financial crises and global downturns

• To provide a forum for leaders and finance ministers of the seven largest economies

Which of the following is the largest export industry in terms of value for Australia?

• Manufacturing

• Mining

• Rural

• Services

An economy’s labour force participation rate falls from 65% to 60%. What is a possible reason for this change?

• An increase in this economy’s GDP

• An increase in funding for childcare places

• The official school leaving age has been increased from 16 to 18 years

• The official retirement age of workers has been increased from 65 to 68 years

The diagram shows the aggregate demand and supply curves for an economy.

• A. A decrease in taxation

• B. An increase in imports

• C. A decrease in consumption

• D. An increase in capacity constraints

To protect its domestic farmers, Country A has increased tariffs on imports of agricultural products from Country B. Which row of the table shows the effect of the higher tariff on each country?

• A. Higher, Increased

• B. Higher, Decreased

• C. Lower, Increased

• D. Lower, Decreased

What is a likely effect on Australia of signing a multilateral free trade agreement?

• An increase in trade with non-member countries

• An increase in tariff revenue for the government

• An increase in long-run real gross domestic product

• Lower levels of short-term structural unemployment

Which of the following is an example of a public good?

• Clean air

• Public housing

• Internet access

• Government buses

Which of the following represents a contractionary change in fiscal stance from Year 1 to Year 2?

• $15 million surplus, $5 million surplus

• $10 million deficit, $10 million deficit

• $15 million deficit, $20 million deficit

• $10 million surplus, $20 million surplus

The table shows data for Country A.

• increased levels of protection.

• decreased access to technology.

• greater access to transport and communication.

• decreased levels of international financial flows.

A country has decided to decrease its import quota on a particular good. What is the most likely reason for this decision?

• To reduce dumping on domestic markets

• To reduce its current account surplus in the long term

• To increase the standard of living and income of its citizens

• To encourage specialisation in the industry in which it has a comparative advantage