Few Economics Multiple Choice Questions (1 Viewer)

[artosis]

Can someone please explain the answers to these questions.










Couldn't the answer to the above be both A and B, it is obvious that the net income component has been a persistent/large sector of the current account deficit because of our low national savings and high foreign liabilities which is basically part B. Or am i wrong...




SOLVED!
NEVERMIND ABOUT THIS QUESTION: Didn't read it properly

 

[michaeljennings]

The first one is D as discretionary means DELIBERATE changes by the govt hence it is D as for the income tax threshold to increase, the govt has to increase it, i dont know how to do the 2nd one, 3rd one is A since if GDP grows then income levels are growing so there will be more consumption and as income levels grow it means people are moving to higher tax brackets so the gov't recieves more revenue from taxation. Not sure about the 4th one but i thought the Australian public sector mainly borrowed from the private sector rather than overseas so maybe not B? and the last one is C because if the lorenz curve gets closer to the line of equality then income inequality is being reduced

 

[michaeljennings]

Ill post a question too:
Which group of countries achieved the fastest growth rate in the 1990s
a) High income
b) newly industrialised
c) Transition
d) Developing
I think the answer is B but im not sure

 

[artosis]

I'm pretty sure its B. eg. Four Asain Tigers which attained exceptional growth and rapid industrialisation around the 1990's.

Btw, why is the 3rd one A? If GDP increases, then sure, consumption will rise and thus higher taxation. But that's not really a consequence is it? The only thing that I can think of is that more consumption will lead to inflationary problems but isn't achieving higher taxes that are sustainable good for the economy?
The answer is A so your right. I just don't fully get why considering higher taxes is good for the economy when it can afford to pay more taxes.

 

[michaeljennings]

okay if you look at in the 'last man standing' point of view
It cannot be D as gov't spending is lowered when GDP increases because there is less to spend on welfare payments
It cannot be C as there is an increase in tax revenue not a decrease in tax revenue, because of people being in higher tax brackets due to increased incomes
It cannot be B as there definitely will be an increase in consumption not a decrease
Therefore the only logical answer is A

 

[esraa]

the second one i think is D because Y= C+I and so u simply solve and get Y= 150 + 0.8Y .. solving that.. 0.2Y= 150 and thus Y=750

 

[michaeljennings]

ah genius. Ill rep you. thanks mate

 

[Tennisaddict]

7. Is B, public sector borrowing creates net foreign debt. Yields made of repayments are the main contributor to our CAD

 

[Tennisaddict]

okay if you look at in the 'last man standing' point of view
It cannot be D as gov't spending is lowered when GDP increases because there is less to spend on welfare payments
It cannot be C as there is an increase in tax revenue not a decrease in tax revenue, because of people being in higher tax brackets due to increased incomes
It cannot be B as there definitely will be an increase in consumption not a decrease
Therefore the only logical answer is A

...

Yeah, this sums it up.
It's a bit of a misguiding question (lol economics mc are death)
but A is the only possible answer.

 

[mangoz]

7. Is B, public sector borrowing creates net foreign debt. Yields made of repayments are the main contributor to our CAD

I thought it was A and I also went and asked my friend and he also think its A because its not the public sector that creates net foreign debt, its the private sector. Hence A should be right because clearly one of our biggest problems is out high net income in the CA. And you can't say "well it indirectly links it " because the answer says specfically borrowing from overseas by the public sector which the public sector does but not as much as net incomes. So that's my two cents lol.

 

[michaeljennings]

yeah question 7 is A

 

[mangoz]

yeah question 7 is A

woooo studying for eco baulko boy? any other exams before eco?

 

[michaeljennings]

just had paper 1 today, i have paper 2 and pdhpe on monday then ext 2 on tuesday then i have eco the following monday lol. How about you?

 

[mangoz]

just had paper 1 today, i have paper 2 and pdhpe on monday then ext 2 on tuesday then i have eco the following monday lol. How about you?

Umm i did paper 1 and 2 on monday and tuesday respectively, and i did chemistry today o.o I then have business on monday, eco on wednesday ext 1 english on thursday and maths ext 1 on friday and then i have 2u on the following tuesday. soo packed ): Hey no wonder the library was a bit more empty with less baulkos lol

 

[michaeljennings]

hahaha which library and which school do you go to? I know a lot of people from baulko go to castle hill library and they act like a damn nuisance according to my friend from cherrybrook tech. I hope they dont act like that at the library you go too. Good luck for your trials btw

 

[mangoz]

hahaha which library and which school do you go to? I know a lot of people from baulko go to castle hill library and they act like a damn nuisance according to my friend from cherrybrook tech. I hope they dont act like that at the library you go too. Good luck for your trials btw

I go to the parramatta one, they're alright although they get a bit loud at times haha. Thanks, you too bro and luckily i only go to castle hill library on weekends haha. Ops i missed your school post. I go to normanhurst boys haha i was a bit loud today though, usually i just solo study but today i was with some friends :/ LOL