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Economics Review Lessons 3 and 4

Total questions: 20

Worksheet time: 17mins

Name
Class
Date
1.

Who is Australia's biggest trading partner?

a)

China

b)

Japan

c)

South Korea

d)

U.S.

2.

What is a tariff?

a)

A tax on exported goods and services

b)

A tax on imported goods and services

c)

A tax on corporate income

d)

A tax on popular market items

3.

A pact between two or more nations to reduce barriers to imports and exports among them is called a:

a)

Market Based Agreement

b)

Free Trade Agreement

c)

Trade Treaty Agreement

4.

When was the China–Australia Free Trade Agreement signed?

a)

In 2013

b)

In 2014

c)

In 2015

d)

In 2016

5.

Australia's top 3 exports to China in 2019 were:

a)

Iron ore, natural gas and tourism

b)

Coal, machinery and education

c)

Iron ore, machinery and tourism

d)

Iron ore, coal and education

6.

Australia's top 5 two-way trading partners in 2019 were (in order from biggest to smallest):

a)

China, USA, Japan, South Korea, Singapore

b)

China, South Korea, Japan, USA, India

c)

China, Japan, USA, South Korea, Singapore

7.

What is inflation?

a)

A general shift in supply and demand

b)

A general increase in prices and fall in the purchasing value of money

c)

A general measure that examines the weighted average of the prices of goods/services

8.

What are the four main types of inflation?

a)

Sneaking; strolling; cantering; racing

b)

Crawling; walking; trotting; severe

c)

Creeping/mild; walking; galloping; hyperinflation

d)

Ebbing; strolling; galloping; superinflation

9.

What does CPI stand for?

a)

Certified Practising Investigator

b)

Consumer Price Index

c)

Commonwealth Public Insurance

d)

Creative Practices Indice

10.

What is the Consumer Price Index?

a)

a percentage of all goods and services, such as transportation, food, and medical care, that Australia exports overseas

b)

a list of popular goods and services, such as transportation, food, and medical care, that consumers have purchased in the previous year

c)

a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care

11.

The weighted average is when a major item in the basket of goods/services used to calculate the CPI counts for more. Tick two items: the one with the greatest weighted average and the one with the lowest.

a)

Health

b)

Housing

c)

Transport

d)

Communication

e)

Food

12.

Goods and services increase in cost over time. Which TWO are correct?

a)

A surge in demand for products and services can cause inflation as consumers are willing to pay more for the product, resulting in higher prices.

b)

The government decides to increase funding for social programs such as free healthcare and education and increass taxes on consumers, resulting in higher prices for products and services

c)

Inflation can occur when prices rise due to increases in production costs, such as raw materials and wages, resulting in higher prices.

13.

What is an economic indicator?

a)

A statistic used to predict future trends in interest rates.

b)

A statistic used to predict future trends in imports and exports.

c)

A statistic used to predict future trends in a nation's economy.

14.

Which ONE of these is NOT an economic indicator?

a)

Unemployment rate

b)

Economic growth rate

c)

Inflation rate

d)

Liveabiliy

e)

Infrastructure

15.

Economic indicators are calculated by government agencies based on financial data. They use this data to measure ........ and gauge the total ................. ?

a)

inflation / economic output of a nation (GDP).

b)

consumer confidence / rate of inflation

c)

import and export potential / unemployment rate

16.

What is a market-based economy?

a)

An economic system in which the decisions regarding investment, production and distribution are guided by increases and decreases in the Consumer Price Index.

b)

An economic system in which the decisions regarding investment, production and distribution are guided by the price signals created by the forces of supply and demand.

c)

An economic system in which the decisions regarding investment, production and distribution are guided by local markets and businesses.

17.

What is the exchange rate?

a)

The speed at which we can send money overseas.

b)

The ability to exchange one item for another.

c)

The rate at which currency is bought and sold at any given time.

d)

The value of one currency for the purpose of conversion to another.

18.

What are 'ethics'?

a)

A code of conduct that guides our actions based on our set of moral standards.

b)

The fact or state of belonging to a social group that has a common national or cultural tradition.

19.

Which of these are ethical considerations?

a)

The environment

b)

Animal welfare

c)

Human rights

d)

Free trade

20.

Which of these are NOT ethical (unethical)?

a)

child labour

b)

sustainably farmed palm oil

c)

logging of old growth forests

d)

fair-trade coffee

e)

tax avoidance