Y10 Economic Review Quiz 1

Which of the following is a non-material living standard?

• Car ownership
• Life expectancy
• Access to consumer goods
• Number of holidays taken

Answer explanation

Life expectancy reflects intangible wellbeing, making it a non-material living standard.

What does GDP most accurately measure?

• Non-material wellbeing
• Standard of education
• Amount of money in circulation
• Total value of goods and services produced

Answer explanation

GDP reflects the total value of goods and services, indicating economic output.

Which of the following factors most directly increases labour productivity?

• Increasing working hours
• Reducing wages
• Training staff
• Cutting lunch breaks

Answer explanation

Training improves workers' skills, which boosts productivity.

Why might political instability lead to lower living standards?

• It lowers taxes
• It encourages more tourism
• It diverts focus from economic development
• It increases exports

Answer explanation

Instability disrupts economic planning and resource allocation.

Which of the following is a macroeconomic policy tool?

• Trade liberalisation
• Company restructure
• Budgetary policy
• Advertising regulation

Answer explanation

Budgetary policy affects the whole economy and is a macroeconomic tool.

What does the term 'negative externality' mean in economics?

• A type of income tax
• A benefit to all producers
• A cost passed onto others not involved in a transaction
• A public good

Answer explanation

Negative externalities are unintended costs to third parties, like pollution.

How does workforce development policy aim to improve living standards?

• By promoting leisure time
• By reducing the need for education
• By improving workforce skills
• By limiting migration

Answer explanation

Better skills lead to higher productivity and employment.

Why might a consumer choose a more expensive item over a cheaper one?

• They always trust new products
• They prefer poorer quality
• Higher price is associated with better quality
• Cheaper items last longer

Answer explanation

Consumers often link price to quality and prestige.

What is one risk of overusing credit cards?

• Increased investment returns
• Higher income tax
• Bankruptcy
• More frequent shopping

Answer explanation

Excessive debt from credit cards can lead to financial insolvency.

Which of these is an example of microeconomic policy?

• Deficit budgeting
• Privatisation of Telstra
• Raising interest rates
• Reducing the GST

Answer explanation

Privatisation affects specific firms or sectors and is microeconomic.