What does gross domestic product (GDP) mean?

GDP is the total value ($) of all of the goods and services

Which of the following best describes diversification (the opposite of specialization)?

An economy that has numerous things to sell to make money

Why are most modern economies referred to as mixed economies?

Most countries have multiple economic types in the economy

Which of the following would be a problem in a command economy?

workers forced to do jobs they did not care to do

Specialization encourages trade between countries. What does specialization mean?

Focusing on something that your country produces well

Which of the following is NOT important to Australia’s economy?

Businesses owned by the government

What is an entrepreneur?

someone willing to take a risk to start a new business

Why do most economies in the world operate in between a market economy and a command economy?

a mixture of both is needed to be successfu

What are capital goods?

Goods that are used in the production of other goods

If Australia has a high literacy rate __________.

they will likely have a strong economy.

What is human capital?

skills and education workers possess

If a country does not invest in its human capital, how can it affect the country's GDP?

GDP goes down because untrained workers can't do their jobs

Complete prohibition of trade with a particular country

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Australian Economics

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Questions 26

Answers

1
Investing in the production of capital goods increases the gross domestic product.
False
True
2
In a market economy, who makes the economic decisions?
consumers and the market
government planners
farmers
traditions and customs
3
What does gross domestic product (GDP) mean?
GDP is the total value ($) of all of the goods and services
GDP refers to the gross stuff made in the country.
GDP refers to the total amount of money produced by a person
4
Which of the following best describes diversification (the opposite of specialization)?
An economy that specializes in one main product
An economy that has numerous things to sell to make money
An economy that mainly uses agriculture to make money
5
Why are most modern economies referred to as mixed economies?
Traditional products have no markets in the modern world.
Government planners don't know how to handle economic issues
Most countries have multiple economic types in the economy
Poverty is always highest in countries with market economies
6
What is a quota?
Complete prohibition of trade with a particular country
Physical trade barrier
Tax on imported goods
Number limit on imported goods
7
What is a tariff?
Physical trade barrier
Complete prohibition of trade with a particular country
Tax on imported goods
Number limit on imported goods
8
Australia's natural resources are, like Canada and Mexico, ______________.
scarce
not important to GDP
imported from Asia
varied and abundant
9
Which of the following would be a problem in a command economy?
individuals trying to start a new business
government planners set prices for goods produced
local crafts produced before manufactured goods
workers forced to do jobs they did not care to do
10
Specialization encourages trade between countries. What does specialization mean?
Thinking of your own country as being more important
Focusing on something that your country produces well
Making everything while the other countries don't make anyth
11
Who takes on the financial risk in starting a new business in a market economy?
entreprenuers
government planners
consumers
combination of government planners and individual investors
12
Which of the following is NOT important to  Australia’s economy?
Human Capital
Businesses owned by the government
Entrepreneurs
Capital Goods
13
What is an entrepreneur?
business people who don't risk their money
someone willing to take a risk to start a new business
someone who is always sucessful
people who save their money
14
On the economic continuum, Australia is more on what side?
Traditional
Market
Command
15
Australia has a very _________ literacy rate.
low
poor
high
16
What is an example of a physical trade barrier?
Mountains
Embargo
Quota
Tariff
17
Why do most economies in the world operate in between a market economy and a command economy?
most consumers want government control
a mixture of both is needed to be successfu
government control makes a market more profitable
government control has never been successful
18
What are capital goods?
Goods that are imported from other countries
Skills and education that workers produce
Total amount of goods produced in a country
Goods that are used in the production of other goods
19
In a traditional economy, how are economic decisions made?
government planners
combination of consumers and government planners
traditions and customs
consumers and the market
20
If Australia has a high literacy rate __________.
they will likely have a strong economy.
few people are able to read and write.
they will likely have a weak economy.
they will have a low standard of living.
21
What is human capital?
skills and education workers possess
money paid to workers for producing goods
taxes collected from a country's workers
the amount of goods sold in foreign trade in a year
22
If a country does not invest in its human capital, how can it affect the country's GDP?
has little effect
GDP goes down because untrained workers can't do their jobs
workers want to keep their jobs and don't care
GDP only changes if workers have to pay for training
23
What is an embargo?
Tax on imported goods
Complete prohibition of trade with a particular country
Number limit on imported goods
Physical trade barrier
24
If Australia invests in capital goods,
GDP will likely fall.
GDP will likely drop.
GDP should remain unaffected.
GDP will likely rise
25
In a command economy, how are economic decisions made?
custom and traditions
consumers and the market
combination of consumers and government planners
government planners
26
The more natural resources a country has, the more goods and services it can produce.
False
True

Australian Economics Flashcards | StudBud