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Worksheets

Economics Revision

Total questions: 56

Worksheet time: 28mins

Name
Class
Date
1.
Huge container ships allow:
a)
Clothes to be bought from overseas.
b)
People to travel to any country they want.
c)
Goods to be transported all over the world. 
d)
People to go on cruises to many parts of the world. 
2.
Mc Donald's  is an example of a multinational corporation.
a)
true
b)
false
3.

Is the spread of religion over human history an example of globalisation?

a)

True

b)

False

4.

What is globalisation?

a)

The process by which the world is becoming increasingly interconnected.

b)

The process by which the world is becoming less interconnected.

c)

The process by which the world is becoming more divided.

5.

Which of these factors have influenced globalisation?

a)

High taxes and investment restrictions.

b)

Communication systems and the internet.

c)

Poor standard of living and unemployment.

6.

Which of the following is NOT a Multinational Corporation?

a)

Ford

b)

Shell

c)

Local newsagent

d)

FedEx

7.

The increased interconnectedness and interdependence of people and countries resulting from the expanding integration of trade, finance, people, and ideas in one global marketplace is known as:

a)

Globalisation

b)

Diffusion

c)

Centralisation

d)

Hybridisation

8.

What does TNC stand for?

a)

Trans national corporations

b)

Trade nations conference

c)

Trans national countries

d)

Trial national cooperations

9.

Which factor might attract a transnational corporation to a country?

a)

Good tourist attractions

b)

Cheap raw materials

c)

High average monthly wage

10.

Globalisation is the process of the world becoming increasingly interconnected due to improvements in...

a)

Transport and telephones

b)

Telephones and computers

c)

Transport and technology

d)

Airline industry

11.

[Noun] - Buying, selling and exchanging goods or services between people.

a)

Marketplace

b)

Trade

12.

What is one advantage of MNC

(a)  

13.

How does MNC benefit the government?

(a)  

14.
Transnational corporations:
a)
tend to make their products in lower-cost countries. 
b)
are involved in slave labour.
c)
do not look after their workers. 
d)
make cheap products and sell them at a high price. 
15.
What are some positive effects of Globalisation ?
a)
Increased freedom to travel and immigrate,better access to medicine,information, and technology.
b)
Lower prices for developed countries and low paying jobs in underdeveloped countries
c)
Less pollution in the world
d)
All of the above
16.
Mc Donald's  is an example of a multinational corporation.
a)
true
b)
false
17.
Globalisation is good because of an ________________ in standard of living , but is bad because there is a _____________ in local cultures and traditions
a)
increase / decrease
b)
decrease / increase
c)
increase / increase
d)
decrease / decrease
18.

Importing goods is:

a)

The sale of goods to another country

b)

Beneficial to a country's economy

c)

The buying of goods from another country

d)

The movement of people around the globe

19.

Which factor(s) might attract a multinational corporation to a country?

a)

Good tourist attractions.

b)

Cheap raw materials.

c)

High weekly wages.

d)

Stable government.

e)

Attractive corporate tax rates.

20.

Which one of the following is a negative consequence of globalisation for less-developed countries

a)

Enhanced cultural uniqueness

b)

Skills transferred to domestic workers

c)

Improved terms of trade

d)

Wider income inequalities

21.

How has China and India benefited from globalisation?

a)

Millions of people have been lifted out of poverty in India and China

b)

Inequalities among the countyside are growing

c)

Increased levels of carbon is being emitted in both countries

22.

The increased interconnectedness and interdependence of people and countries resulting from the expanding integration of trade, finance, people, and ideas in one global marketplace is known as:

a)

Globalisation

b)

Diffusion

c)

Centralisation

d)

Hybridisation

23.

What are two technological advancements that have encouraged the growth of MNCs?

a)

Transport

b)

Communications

c)

Pharmaceuticals

d)

Renewable energy

24.

What are TNCs?

a)

Trans National Countries

b)

Trans National Corporations

c)

Trans National Counties

d)

Trans Nautical Cruisers

25.

Nike is a TNC.

a)

True

b)

False

26.
Generally, there has been an outsourcing of ............. to China?
a)
Services
b)
Manufacturing
27.

Identify the main 5 sectors in the CFIM

a)

Households, Firms, Producers, Financial, Government

b)

Firms, Financial, Government, Overseas, Banks

c)

Households, Firms, Financial, Government, Overseas

d)

Overseas, Businesses, Firms, Consumers, Government

28.

The role of Households is to:

a)

Provide resources to Firms and spend money on goods and services

b)

Sell goods and services and spend their income

c)

Spend money to consume goods and services and provide income to consumers

d)

Purchase resources from Firms and spend money on goods and services

29.

The role of Firms in the economy is to:

a)

Sell land, labour and capital and make goods and services

b)

Invest in capital goods to spend money and inject income into the economy

c)

Produce goods and services and provide an income to households

d)

Produce goods and services and spend money on goods and services

30.

The leakage for the Financial sector is:

a)

Taxation

b)

Savings

c)

Imports

d)

Exports

31.

The leakage for the Government Sector is:

a)

Savings

b)

Imports

c)

Government Expenditure

d)

Taxation

32.

The leakage of the Overseas sector is:

a)

Imports

b)

Exports

c)

Investment

d)

Taxation

33.

The injection for the Financial Sector is:

a)

Savings

b)

Government Expenditure

c)

Investment

d)

Exports

34.

The injection for the Government Sector is:

a)

Taxation

b)

Investment

c)

Government Expenditure

d)

Exports

35.

The injection for the Overseas sector is:

a)

Investment

b)

Exports

c)

Imports

d)

Government Expenditure

36.

In the CFIM 'O' stands for Output. This refers to which flow?

a)

Consumer Expenditure

b)

Goods and Services

c)

Providing an income

d)

Selling productive resources (land, labour, capital)

37.

In the CFIM the 'real' flow refers to:

a)

The flows between Households and Firms

b)

The flow of goods and services and economic resources

c)

The flow of income and consumer expenditure

d)

The flows between Household and the Financial sector

38.

When doing calculations involving the CFIM 'Y' stands for:

a)

Income

b)

Output

c)

Exports

d)

Imports

39.

Which equation shows the economy is in equilibrium?

a)

S x T - M = I / G - X

b)

I + S + X = T + M + G

c)

S + T + M = I + G + X

d)

G x I x M = X / T + S

40.

The leakages and injections in the 3 sector model of the CFIM would be:

a)

S+I

b)

T+S

c)

I+X

d)

S+G

41.

Imports and Exports are:

a)

the injection and leakage of the Financial sector, respectively

b)

I + E

c)

M + X

d)

always in equilibrium

42.

If an employee collects his/her wages which flow is this?

a)

Consumer Expenditure

b)

Savings

c)

Providing of economic resources: labour

d)

Providing an income to Households

43.

A car manufacturer installs a new welder. Which flow is this?

a)

Production of goods and services

b)

Investment

c)

Purchasing of economic resources from Households

d)

Government expenditure

44.

A teenager opens a new bank account. Which flow does this belong to?

a)

Investment

b)

Providing an income to Households

c)

Consumer Expenditure

d)

Savings

45.

A year 9 student purchases a new iPhone. Which flow is this?

a)

Consumer expenditure

b)

Production of goods and services

c)

Providing an income to Households

d)

Selling economic resources to Firms

46.

A teacher gets charged income tax. Which flow does this belong to?

a)

Savings

b)

Providing an income to Households

c)

Taxation

d)

Government Expenditure

47.

The Government decides to reduce the income tax rate by 10% due to COVID-19. What effect will this have on the economy?

a)

Cause the leakage of taxation to increase therefore a contraction

b)

Cause the leakage of taxation to decrease therefore an expansion

c)

Cause an injection of government expenditure to increase therefore an expansion

d)

Cause an injection of government expenditure to decrease therefore a contraction

48.

Commonwealth Bank decides to fund improvements to Beatty Park sport stadium, renaming it Commonwealth Beatty Park. What effect will this have on the economy?

a)

Cause the leakage of Taxation to decrease therefore an expansion

b)

Cause an injection of Government Expenditure to increase therefore an expansion

c)

Cause an injection of Investment to increase therefore an expansion

d)

Cause an injection of Investment to decrease therefore an expansion

49.

300 Chinese students enrol at the University of Western Australia. What effect will this have on the economy?

a)

Cause the leakage of imports to increase, leading to a contraction

b)

Cause the injection of exports to increase, leading to an expansion

c)

Cause the injection of exports to decrease, leading to an expansion

d)

Cause the leakage of imports to decrease, leading to an expansion

50.

As a general rule, if the economy experiences a serious imbalance between leakages and injections where there are a great deal more leakages than injections this is where the economy may experience:

a)

a recession

b)

growth in economic activity

c)

an economic boom

d)

low unemployment

51.

If the economy is CLOSED - which sector is not included?

a)

Government Sector

b)

Financial Sector

c)

Household Sector

d)

Overseas Sector

52.

What does GDP stand for?

a)

Good Domestic Pets

b)

Grand Diamond Products

c)

Gross Domestic Product

d)

Grand Domestic Prizes

53.

What are the 3 leakages in the Circular Flow Income Model?

a)

Financial Sector, Government Sector and Overseas Sector

b)

Savings, Taxation and Imports

c)

Savings, Taxation and Exports

d)

Investment, Government Spending & Exports

54.

What are the 3 injections in the Circular Flow Model?

a)

Taxation

b)

Government Spending

c)

Exports

d)

Investment

55.

Which sector is missing from this picture?

(a)  

56.

Which sector is missing from this model?

(a)