WorksheetsInternational Economics Revision
Total questions: 15
Worksheet time: 10mins
The table shows the exchange rate of the Australian dollar ($A) expressed as units of foreign currency per $A.
How has the value of the Australian dollar changed in Year 2 compared to Year 1?
It has appreciated against the Euro and depreciated against the Yen
It has depreciated against the Euro and appreciated against the Yen
It has appreciated against the Euro and depreciated against the $US
It has depreciated against the Euro and appreciated against the $US
An exchange rate system where the central bank sets the value of the exchange rate in relation to another currency is referred to as a:
Flexible exchange rate system
Fixed exchange rate system
Floating exchange rate system
Stable exchange rate system
If a foreign mining company establishes a coal mine in Queensland, the likely impact on the Circular Flow of Income Model for Australia would be:
An increase in Australia’s unemployment rate and an increase in business investment
A decrease in Australia’s unemployment rate and an increase in business investment
An increase Australia’s unemployment rate and a decrease in business investment
A decrease in Australia’s unemployment rate and a decrease in business investment
One of Australia’s top five imports is:
Iron Ore
Coal
Passenger Motor Vehicles
Natural Gas
Which of the following is most likely to reduce Australia’s import volumes?
A recession in Australia and an appreciation of the Australian dollar
An economic expansion in Australia and a depreciation of the Australian dollar
An economic expansion in Australia and an appreciation of the Australian dollar
A recession in Australia and a depreciation of the Australian dollar
Comparative Advantage is the theory:
a scenario in which one country can manufacture a product at a higher quality and a faster rate for a greater profit than another competing country.
a condition or circumstance that puts a country in a favourable or superior trade position for example resource endowment
economy's ability to produce goods and services at a lower opportunity cost than that of trade partners.
an economic theory where the government seeks to regulate the economy and trade in order to promote domestic industry
Which of the following is a top 5 export for Australia
Education and Coal
Tourism and Motor Vehicles
Coal and Machinery
Education and Electrical Equipment
Which country does not have a floating exchange system
Germany
Canada
Australia
Venezuela
Which of the following will cause an depreciation of the Australian Dollar?
lower interest rates
decrease in export volume
political instability
low inflation
An unfavourable movement in the terms of trade will mean that:
a holiday to Bali will become more expensive for Australians
imports are now more expensive to buy.
the value of the Australian dollar has risen against a basket of other nations’ currencies
Australia has to export more goods and services to purchase the same volume of imports
Use the table in the picture to determine what should country A produce according to Comparative Advantage.
Planes
Planes and Submarines
Submarines
Neither Planes nor Submarines
The introduction of a tariff by Brazil on Australian Beef would likely impact on the Australian Economy by
Increase in imports
Increase the value of the Australian dollar
Force consumers to switch from Beef to Chicken
Decrease export volumes
Which of the following best explains the terms of trade for an economy?
The prices of exports compared to the volume of exports
The difference between export income and export expenditure
The ratio of export income to import expenditure
The prices of exports compared to the prices of imports
Which country is not one of Australia’s top 5 trading partners for exports?
UK
New Zealand
China
Japan
There is a significant increase in official interest rates in Australia. All other things being equal, which of the following would be true?
The AUS Dollar depreciates against most other currencies
No change AUS Dollar
The US Dollar depreciates against most other currencies
The AUS Dollar appreciates against most other countries
