Australia Econ

Why is the modern Australian economy considered a mixed economy?

• The Australian government makes all economic decisions for its citizens.

• Economic decisions are made based on the decisions of Australians' ancestors.

• Australians are free to produce anything they want in any way they want

• Individuals make most economic decisions but must follow government regulations.

Why would the economy of the Aboriginal peoples of Australia have been considered a traditional economy before contact with European civilizations?

• All economic decisions were made by a central governmental authority

• The forces of supply and demand determined what would be produced.

• A group of elders in each community set the prices at which goods were sold.

• They based their economic activities on the economic activities of their ancestors.

Most nations in the world operate economies that are MAINLY mixtures of both

• market and traditional economies.

• command and market economies.

• traditional and command economies.

• communist and traditional economies.

What is the economy of Australia?

• a pure market economy

• a pure command economy

• a market-leaning mixed economy

• a command-leaning mixed economy

Why is a system of currency exchange necessary for countries to trade with one another?

• because most countries specialize in different goods

• because most countries use different forms of money

• because most countries have different types of economies

• because most countries possess different natural resources

Australia's large investments in secondary and postsecondary education have contributed to gross domestic product growth by

• increasing legal immigration.

• improving worker productivity

• helping people find work abroad.

• reducing natural resource dependence.

Why do investments in capital goods generally lead to economic growth?

• Capital goods increase the efficiency of the workforce.

• Capital goods help workers increase their human capital.

• Capital goods increase the wages earned by the workforce.

• Capital goods reduce workers' need for human capital

What role do natural resources play in Australia's economy?

• Australia controls all of the natural resources that it needs, so it imports very few products.

• The Australian government controls the country's natural resources by setting prices and quotas

• Australia has many valuable natural resources that it produces and exports to other countries.

• Australia depends on the import of natural resources, leaving it vulnerable to price changes.

What would be the MOST effective way for a government to raise its people's standard of living?

• nationalizing major industries

• increasing economic barriers to trade

• funding programs to improve adult literacy

• reducing environmental regulations on businesses

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.