Exam-style practice (harder): Economics multiple choice quiz
14 questions. Pick an answer and you'll see why right away. Options are shuffled each attempt, and the review at the end links each missed question to the dot point to revise.
In an economy, the marginal propensity to save is 0.1, the marginal propensity to pay tax is 0.2 and the marginal propensity to import is 0.1. The government increases its spending by $20 billion.
Assuming no other changes, what is the eventual change in GDP?
Labour force data Millions Civilian population aged 15 and over 21.0 Employed 14.0 Unemployed 0.6 Which option gives the unemployment rate and the participation rate?
Year Export price index Import price index 1 120 110 2 132 115.5 Which statement about Australia's terms of trade between Year 1 and Year 2 is correct?
The Reserve Bank of Australia raises the cash rate while the central banks of Australia's major trading partners leave their rates unchanged.
All else being equal, which is the most likely short-term effect?
The exchange rate moves from AUD 1 = USD 0.65 to AUD 1 = USD 0.70. An American importer buys Australian wine priced at AUD 40 per bottle, and the AUD price does not change.
What happens to the price of a bottle in US dollars?
Current account item $ billion Balance on goods +80 Balance on services -10 Net primary income -60 Net secondary income -2 Which statement is correct?
During an economic downturn, the federal budget moves from a small surplus to a deficit, although the government has not changed any tax rates or spending programs.
Which statement best explains this change?
In a year, nominal GDP grew by 6.5%, the general price level (GDP deflator) rose by 4.0%, and the population grew by 2.0%.
What was the approximate growth in real GDP per capita?
The table shows the share of total household income received by each quintile in two years.
Quintile Year A (%) Year B (%) Lowest 20% 4 3 Second 20% 9 8 Middle 20% 15 15 Fourth 20% 23 24 Highest 20% 49 50 Which statement is correct?
Australia is a small importer of good X and takes the world price of $10 as given. The government imposes a tariff of $5 per unit.
Price Domestic quantity supplied Domestic quantity demanded $10 20 100 $15 40 80 How much tariff revenue does the government collect?
Which sequence best describes how a cut in the cash rate is expected to reduce unemployment?
Year Unemployment rate (%) Inflation (%) Wage price index growth (%) 1 5.2 1.8 2.2 2 4.4 3.5 2.9 3 3.6 6.1 3.7 4 3.9 6.3 4.0 Which statement is supported by the data?
Under a carbon price of $30 per tonne, Firm A could cut its emissions at a cost of $20 per tonne, and Firm B could cut its emissions at a cost of $40 per tonne.
What is the most likely outcome?
The table shows the output of one worker in one day.
Country Wheat (tonnes) Cloth (bolts) X 10 5 Y 6 2 According to the theory of comparative advantage, which pattern of specialisation would maximise the gains from trade?