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Worksheetsthe australian car industry
Total questions: 45
Worksheet time: 26mins
Name
Class
Date
1.
which is not a form of subsidy for the car industry when it began
a)
high fixed exchange rate
b)
government provided land and infrastructure
c)
capital to set up factory
d)
production payments to car company for each car produced
2.
why isn't the australian car market flooded with 2000 $ cherry cars
a)
chinese subsidies don't apply in australia
b)
high tariff walls
c)
red tape barriers
d)
inferior goods
3.
at its peak the australian car industry in the 1970's was producing ..... cars a year
a)
2 million
b)
1 million
c)
500,000
d)
100,000
4.
in 2010 China produced ... cars
a)
14 million
b)
28 million
c)
5 million
d)
56 million
5.
the biggest producer of cars from this list is
a)
Germany
b)
south Korea
c)
Brazil
d)
US
6.
least efficient
a)
China
b)
India
c)
Japan
d)
US
7.
Ford GMH and ToYota are all examples
a)
of multilateral oligopolies
b)
multinationals
c)
mass producers
d)
Current account debits
8.
which of these was not produced in australia
a)
british leyland
b)
renault
c)
nissan
d)
Chevrolet
9.
the major criticism of subsidies is it promotes
a)
trade wars
b)
inflation
c)
inefficiency
d)
smaller markets
10.
which is not a major criticism of care industry tariffs
a)
they cause inflation
b)
they increase tax burden on domestic consumers
c)
they restrict consumer choice
d)
encourage inefficiency
11.
the button plan in the 1970s was about
a)
making less models and achieving economies of scale
b)
shutting down 2 of the three car producers
c)
increasing trade protection to save jobs
d)
introducing push button key starts to revolutize cars
12.
over the past ten years the car industry in australia received
a)
$5.4 billion
b)
$0.5 billion
c)
$2 billion
d)
$10 billion
13.
the major macroeconomic problem with the death of the australia car industry is the risk of
a)
structural unemployment
b)
negative multiplier effect
c)
decrease in LRAS
d)
microeconomic reform
14.
one benefit from the closure of the australia car industry for domestic consumers will likely be
a)
cheaper cars
b)
more choices
c)
better quality
d)
all of these options
15.
on average the car subsidy for each australian each year given to ford holden and toyota is
a)
$25
b)
$1000
c)
$125
d)
$5
16.
which is an example of a niche car producer market
a)
Commodore
b)
Ford fiesta
c)
Mack trucks
d)
electric trams
17.
which is an example of the world car model of car production
a)
china produces all car types
b)
holden makes baron and sukuzi swifts
c)
LDC make cheaper model cars
d)
all of these options
18.
how many cars were produced in australia in 2015
a)
170,000
b)
55,000
c)
250,000
d)
323,000
19.
how many jobs will be potentially be lost in the australian workforce
a)
100,000
b)
200,000
c)
50,000
d)
500,000
20.
what is the potential loss of revenue from our GDP
a)
1 b
b)
10b
c)
30 b
d)
100b
21.
when the A$ appreciates it makes
a)
imports cheaper
b)
exports cheaper
c)
discourages capital inflow
d)
causes budget surplus
22.
type of unemployment
a)
frictional
b)
long term
c)
structural
d)
cyclical
23.
the main type of protection used
a)
subsidy
b)
tariff
c)
embargo
d)
voluntary export restraint
24.
after the tariff imports will fall to
a)
q1 -q4
b)
q1 - q2
c)
q2 -q4
d)
qe- q4
25.
if the car industry is replaced by imports how will it appear on the balance of payments
a)
credit merchandise trade capital account
b)
debit merchandise current account
c)
credit trade balance capital account
d)
de bit current account, transfer
26.
if Australians are angry for australian car producers - the likely result would be a .......... for fords holdens and toyotas that are imported
a)
decreased demand
b)
increased demand
c)
decreased supply
d)
extension of demand
27.
where is this from
a)
Japan
b)
India
c)
Africa
d)
europe
28.
a policy which will be necessary after the closure of the car industry will
a)
subsidising long tern unemployed car workers
b)
offering them the pensions
c)
job retraining schemes
d)
lowe income tax for them as they adjust to new careers
29.
one possible negative impact of the closure of the car industries for consumers could be
a)
too many cars to choose from
b)
cars will become more expensive
c)
spare parts could be more expensive due to inelastic demand and less supply
d)
only some foreign cars will be allow dingo the australian market
30.
if a limited cars is only allowed into a country as imports it is a
a)
voluntary export restraint
b)
quota
c)
free trade agreement
d)
capped industry assistance
31.
lowering the cash rate in times of slow economic growth is meant to
a)
depreciate the currency
b)
decrease the money supply
c)
increase the inflation rate
d)
trade jobs for inflation
32.
which of the following factors is the most significant in explaining the decline of the car industry
a)
lack of economies of scale
b)
too many producers
c)
inefficiency and dependency on trade protection
d)
small market size
33.
Name this logo:
a)
Bentley
b)
Porsche
c)
Lamborghini
d)
McLaren
34.
What does Specialization mean?
a)
Something oe person does for someone else.
b)
Not being able to have everything that you want because of limited resources.
c)
Having more than you want, or need.
d)
When people work in jobs where they produce a few special goods, or services.
35.
All of the following are advantages of trade EXCEPT
a)
Trade increases competition and lowers world prices.
b)
Trade breaks down local monopolies.
c)
Trade increases the amount of jobs available.
d)
The quality of goods and services is likely to decrease.
36.
A disadvantage of international trade might be....
a)
Local producers might suffer because a foreign product will be cheaper than theirs.
b)
You can purchase rare items from other countries.
c)
If demand falls, more specialized jobs will be created.
d)
New industries can grow because of competition from foreign producers.
37.
How does division of labor increase productivity?
a)
Less training is needed for workers
b)
Less pay for workers
c)
Workers become experts at one task
d)
Workers change jobs more often
38.
Which of these is the MAIN reason one nation has the comparative advantage over another nation in producing raw materials?
a)
Differences in the amount of natural resources
b)
Differences in monetary systems
c)
Differences in culture
d)
Differences in local business practices
39.
Which of these is the MAIN reason one nation has the comparative advantage over another nation in producing raw materials?
a)
Differences in the amount of natural resources
b)
Differences in monetary systems
c)
Differences in culture
d)
Differences in local business practices
40.
A tariff or tax is used by countries to raise the price of imported goods so people will purchase the domestic products instead of foreign products.
a)
True
b)
False
c)
I don't know
d)
Probably true but more than likely false
41.
A U.S. auto manufacturer plans to relocate plant operations to Mexico as a result of the North American Free Trade Agreement (NAFTA). Which criticism of free trade agreements would be based on this relocation?
a)
The demand for U.S. automobiles will decrease.
b)
The cost for producing U.S. automobiles will increase.
c)
U.S. automotive designers will have to create more efficient cars.
d)
U.S. automotive factory workers will have to compete with foreign workers.
42.
If you can perform a task at a lower opportunity cost than someone else, you have a ________.
a)
Comparative advantage
b)
Comparative disadvantage
c)
no advantage
d)
higher intelligence
43.
Suppose the exchange rate between the United States and Japan changes from $1 = 100 yen to $1 = 110 yen. What would happen to the prices of American goods in Japan?
a)
increase or decrease
b)
decrease
c)
remain the same
d)
increase
44.
Importing more than exporting is
a)
trade surplus
b)
trade deficit
c)
balance of trade
d)
balance of payment
45.
which is the main reason the car industry died
a)
high A$ meant imports cheaper
b)
lacked the economies of scale to compete
c)
inefficiencies created by dependence on protection
d)
all of these options
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