Which of the following represents the effect of this tariff on the economy? (Refer to Diagram)

Domestic production would increase from Q1 to Q4

What is an advantage of free trade for nations?

Are able to specialise and as a result produce more output

Increases in which of the following indicate economic development?

Structural change and real incomes

In the expansionary phase of a business cycle, which of the following is likely to occur?

Lower rates of unemployment and higher consumption levels

What is the role of the International Monetary Fund (IMF)?

To maintain financial stability in global financial markets

Which of the following describes an effect of globalisation?

An increase in the inequality of income distribution

Which entity primarily conducts foreign direct investment in other countries?

Transnational Corporations (TNCs)

Which of the following is NOT a primary cause for increased financial flows around the world?

Greater volumes of remittances sent

According to the diagram, what is the effect of a movement in the quota from S to S1

The quota increases and the domestic price falls

What is the most common reason given for a country to increase tariff protection?

To maintain domestic employment

Which of the following measures does the HDI (Human Development Index) NOT assess?

Child Mortality Rate, Gross Domestic Product (GDP) per capita

Which of the following is a likely effect of a subsidy?

The supply from local producers will increase

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Year 12 Economics - Topic 1 - The Global Economy Revision

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Revision of Topic 1 - The Global Economy of the Year 12 HSC Economics Syllabus

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Questions 20

Answers

1
Which of the following represents the effect of this tariff on the economy? (Refer to Diagram)
Government revenue would be equal to the world price (P1)
Domestic production would increase from Q1 to Q4
Import volumes would increase from Q2 to Q3
The domestic price would increase to the equilibrium price
2
What is an advantage of free trade for nations?
Can prevent cheap imports being dumped on domestic markets
Can freely adopt policies to protect all domestic industries
Are able to specialise and as a result produce more output
Can become self-sufficient to satisfy domestic wants
3
Which of the following is the bilateral agreement between Australia and New Zealand?
WTO
ASEAN
ANZCERTA
APEC
4
Increases in which of the following indicate economic development?
Labour force participation rate and the level of employment
Structural change and real incomes
Gross Domestic Product and Gross World Product
Consumer Price Index and the value of the currency
5
In the expansionary phase of a business cycle, which of the following is likely to occur?
Lower rates of unemployment and higher consumption levels
Lower rates of economic growth and lower government revenue
Lower Volume of imports and lower volumes of exports
Lower government revenue and higher rates of unemployment
6
What is the role of the International Monetary Fund (IMF)?
To implement and advance global trade agreements
To help poorer countries with their economic development
To maintain financial stability in global financial markets
To settle industrial and trade disputes between members
7
Which of the following describes an effect of globalisation?
Greater regulation of labour, financial and product markets
A greater divergence in world economic systems
An increase in the inequality of income distribution
Higher Domestic Economic Growth but less International Trade
8
Which entity primarily conducts foreign direct investment in other countries?
Local Firms
Transnational Corporations (TNCs)
Speculative Investors
Governments
9
Which of the following is NOT a primary cause for increased financial flows around the world?
Faster and Larger Currency Exchanges
Advancements in Technology; the Internet and E-Commerce
Deregulation of Financial Markets and Capital Movements
Greater volumes of remittances sent
10
What type of economy has the fastest growth rates?
Emerging Economies
Developing Economies
Advanced Economies
The Global Economy
11
From the diagram, what is the subsidy (per item) paid to domestic producers?
$2
$12
$8
$4
12
The most appropriate measure used to detail income and wealth inequality in an economy is the?
Gini-Coefficient
HDI (Human Development Index)
Lorenz Curve
GNI (Gross National Income) per capita
13
The World Trade Organisation has encouraged nations to mainly reduce what type of protection?
Tariff-Based Protection
Quota-Based Protection
Currency-Based Protection
Subsidy-Based Protection
14
According to the diagram, what is the effect of a movement in the quota from S to S1
The quota decreases and the domestic price rises
The quota increases and the domestic price falls
The quota decreases and the domestic price falls
The quota increases and the domestic prices rises
15
Within a Trading Bloc and Free Trade Area, which flow is the most restricted in nature?
Investment
Trade
Capital/Technology
Labour
16
What is the most common reason given for a country to increase tariff protection?
To maintain domestic employment
To reduce the rate of domestic inflation
To raise government revenues
To increase trade volumes
17
Which of the following measures does the HDI (Human Development Index) NOT assess?
Life Expectancy at Birth
Child Mortality Rate
Level of Adult Educational Attainment
Gross Domestic Product (GDP) per capita
18
Of which of the following groups is Australia a member?
The Group of 8 (G8)
The Association of South-East Asian Nations (ASEAN)
The Group of Twenty (G20)
The North American Free Trade Agreement (NAFTA)
19
What would decrease as a result of an improvement in the international business cycle?
Global inflation
Cyclical unemployment
Foreign investment
Export receipts
20
Which of the following is a likely effect of a subsidy?
The price of exported items will rise
Resource allocation will be more efficient
Inflation will increase due to more expensive imports
The supply from local producers will increase

Year 12 Economics - Topic 1 - The Global Economy Revision Flashcards | StudBud