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Worksheets

Year 12 Economics

Total questions: 20

Worksheet time: 15mins

Name
Class
Date
1.

Which of the following best explains the benefits of globalization?

a)

Globalization creates a better environment for businesses to profit in through the loss of consumer surplus

b)

Globalization promotes ethical behaviour

c)

Globalization increases innovation and development

d)

Globalization is driven by increased technology

2.

Which of the following is not an argument for trade liberalization?

a)

The infant industry argument

b)

The resource allocation argument

c)

The most favored nation argument

d)

The innovation argument

3.

The World Trade Organisation’s key purpose is to:

a)

Promote trade by working to improve global monetary cooperation

b)

Promote trade by ensuring that rules to protect nations exist and are followed

c)

Promote trade by providing technical assistance and advice to developing nations

d)

Promote trade by assisting nations to form Free Trade Agreements

4.

The key role of the International Monetary Fund is to:

a)

Ensure that trade flows smoothly, predictably and freely

b)

Provide low interest loans to developing nations to allow them to develop industries for trade

c)

Foster global monetary cooperation, secure financial stability and promote trade

d)

Promote global, regional and bilateral trade agreements

5.

Which of the following trading blocs is Australia not a member of?

a)

ASEAN

b)

OPEC

c)

TPP

d)

The Cairns Group

6.

Which of the following FTAs is the most recent for Australia?

a)

Australia-United Kingdom FTA

b)

Peru-Australia FTA

c)

Indonesia-Australia FTA

d)

China-Australia FTA

7.

Which of the following is a non-economic argument for protection?

a)

Anti-dumping

b)

Infant industry

c)

Diversification

d)

National defense

8.

Which of the following are Australia’s top four export partners:

a)

China, Hong Kong, United Kingdom and the USA

b)

China, Japan, Germany and the USA

c)

China, South Korea, Japan and the USA

d)

China, Japan, Germany and Hong Kong

9.

Which of the following is not likely to be associated with globalization?

a)

Higher levels of protection against cheap foreign imports

b)

An increase in exports as a proportion of a nations’ GDP

c)

Growth in the influence and power of multinational corporations

d)

Higher rates of economic growth for nations who increase their trade openness

10.

Australia’s international competitiveness will increase if:

a)

Multilateral FTAs are created and implemented

b)

Wages in Australia rise at a faster rate than productivity

c)

The value of the Australian dollar appreciates relative to other currencies

d)

Economic growth is faster in Australia than other OECD nations

11.

The Australian government has facilitated trade liberalisation by:

a)

Encouraging democracy

b)

Reducing restrictions on international businesses

c)

Encouraging people to buy Australian made products

d)

Increasing the value of subsidies in the federal budget

12.

Which of the following factors contributes to Australia’s relatively low trade intensity?

a)

Low transport costs caused by our proximity to South East Asia

b)

Membership of several trading blocs

c)

A large domestic market with strong competition

d)

A reliance on primary sector exports

13.

A significant rise in living standards would be likely if a nation

a)

Increased trade protection for local producers

b)

Reduced the level of foreign investment to avoid increasing levels of foreign debt

c)

Reduced trade barriers, regardless of what other nations did

d)

Promoted greater self-sufficiency to reduce the cost of imports

14.

A subsidy could be best described as a

a)

quantitative restriction that enables domestic producers to gain a greater share of the local market

b)

price based form of protection that provides an increase in government revenue

c)

form of protection that increases government expenditure and would therefore require regular reviews

d)

form of protection that allows firms to increase production at no additional cost while increasing government revenue

15.

One advantage of imposing a subsidy is:

a)

An increase in consumer surplus

b)

An increase in producer surplus

c)

An increase in total surplus

d)

More efficient resource allocation

16.

Which of the following statements relating to Australia's composition of trade is correct?

a)

The USA has become the largest source of Australian imports

b)

Education is Australia's largest services export

c)

Agricultural exports have increased in importance over recent years

d)

Freight services is the largest service import for Australia

17.

Which of the following accounts for the proportion of world trade by value?

a)

Agriculture

b)

Fuels and mining

c)

Services

d)

Manufactured goods

18.

The fundamental economic advantage of trade liberalisation is

a)

The easing of political tensions between nations

b)

All nations will develop similar industries

c)

All nations will share equally in the world's wealth

d)

Resources will be more efficiently allocated

19.

International trade takes place because of

a)

Inequalities in the endowment of factors of production between nations

b)

Governments' desires to protect their industries

c)

Exchange rates causing differences in prices levels in different countries

d)

Inequalities in the terms of trade between nations

20.

Which of the following organisations is most likely to act if a nation experiences a sudden financial crisis?

a)

The World Bank

b)

The IMF

c)

The WTO

d)

The United Nations