Economics in Australia

Which is true about the economic system in Australia?

• It is difficult for individuals to start their own businesses.

• Government rules and laws make starting a business in Australia very risky.

• Laws are in place to protect the rights and property of people who want to start their own businesses in Australia.

• Few Australians are willing to use their money and time to start businesses because the government is likely to take their business away.

Which is an example of a capital good?

• gold

• health care

• a factory

• a diamond

What has helped Australia to have a high GDP?

• poor healthcare

• modern factories and technology

• natural resources that are hard to develop

• workers with low-paying jobs

Tariffs and quotas are alike because they both

• restrict or limit trade between countries.

• completely stop trade between countries.

• increase trade between countries.

• make trading a lot easier between countries.

Which trade barrier discourages trade by placing a tax on foreign goods?

• Embargo

• Quota

• Subsidy

• Tariff

What is an important role of entrepreneurs in the Australian economy?

• They sell stocks in the stock market.

• They provide new jobs for Australian workers.

• They shut down factories that are not making much money.

• They take care of sick patients.

Which is an example of investing in capital goods by a company?

• providing health care for workers

• providing classes for workers to learn new skills

• keeping an old machine to see if it will last longer

• buying new computers to build products more quickly

Who sets the price for goods in Australia?

• Buyers and sellers agree upon price.

• The governor-general sets prices for most goods.

• Parliament sets a price for all goods in the country.

• Prices for goods are set based on customs and beliefs of the Aborigines.

Select two items below that would decrease entrepreneurship in Australia.

• Australia passing new regulations on businesses.

• Australia providing a tax break for new businesses.

• Australia passing new laws increasing minimum wages.

• Australian banks lowering interest rates on start-up business loans.

If Country A imposes a tax of 15% on wool imported from Country B, Country A has created

• a tariff

• a quota

• a sanction

• an embargo