Economics Marathon (2 Viewers)

[aphorae]

More multiple choice:

1. Assume the economy is in a state of full employment. Which of the following policies would not be appropriate to increase the rate of economic growth?
(a) Encouraging an increase in private savings and investment in capital goods.
(b) Improving the knowledge and skill of people through education.
(c) Developing technology and managerial ability.
(d) Encouraging an increase in the proportion of total expenditure devoted to consumption expenditure.

2. Capital deepening refers to:
(a) increases in the amount of capital relative to labour
(b) increases in the amount of labour relative to capital
(c) a constant capital to labour ratio with an increase in the labour force
(d) a decrease in the amount of capital relative to labour with a decrease in the labour force.

3. Which of the following items would NOT be included when calculating Australia’s GDP?
a) The winnings of a golf professional.
b) A bunch of flowers sold by a florist.
c) Furniture sold by retailers.
d) Timber sold to furniture manufacturers.

 

[abc123yoyo]

More multiple choice:

1. Assume the economy is in a state of full employment. Which of the following policies would not be appropriate to increase the rate of economic growth?
(a) Encouraging an increase in private savings and investment in capital goods.
(b) Improving the knowledge and skill of people through education.
(c) Developing technology and managerial ability.
(d) Encouraging an increase in the proportion of total expenditure devoted to consumption expenditure.

2. Capital deepening refers to:
(a) increases in the amount of capital relative to labour
(b) increases in the amount of labour relative to capital
(c) a constant capital to labour ratio with an increase in the labour force
(d) a decrease in the amount of capital relative to labour with a decrease in the labour force.

3. Which of the following items would NOT be included when calculating Australia’s GDP?
a) The winnings of a golf professional.
b) A bunch of flowers sold by a florist.
c) Furniture sold by retailers.
d) Timber sold to furniture manufacturers.

1. d because the rest are increasing productivity = greater output = economic growth
2. a - only 1 that makes sense? lol no clue
3. a - the only thing that isnt sold - no clue

Q. How do you calculate labour force participation rate and unemployment rate?

 

[aphorae]

1. d because the rest are increasing productivity = greater output = economic growth
2. a - only 1 that makes sense? lol no clue
3. a - the only thing that isnt sold - no clue

1. yep!
2. yep! deepening is kind of like increasing... well I think of it as 'depth' like productive capacity
3. yep! Y = AD = C+I+G+(X-M) and a) is not one of those (b, c = consumption, d = investment)

Q. How do you calculate labour force participation rate and unemployment rate?

LFPT = labour force/working age population (15+) x 100
u/e rate = # unemployed/labour force x 100

 

[Bobbo1]

Labour force Participation = labour force (employed + unemployed) / working age population
Unemployment rate = unemployed/labour force

Q: Distinguish between the WTO and the World Bank, and outline the function each has in the global economy.

 

[aphorae]

1. Question 1 refers to the following table:
.............Y1 Y2
Real GDP 300 300
Nominal GDP 400 450

What is the annual rate of inflation between these periods?
(a) 50 per cent
(b) 33 per cent
(c) 12.5 per cent
(d) zero per cent

2. Suppose that in a country with a population of 50 million, there are 30 million employed and 2 million unemployed. What is the unemployment rate?
(a) 4%
(b) 6.25%
(c) 6.67%
(d) 10%

3. Which of the following items would appear as a debit in the Income section of Australia's balance of payments?
(a) an Australian buying shares overseas
(b) an Australian company buying computers from Taiwan
(c) a foreign company paying tax to the Australian government
(d) an Australian company paying interest to overseas investors.

 

[aphorae]

Labour force Participation = labour force (employed + unemployed) / working age population
Unemployment rate = unemployed/labour force

Q: Distinguish between the WTO and the World Bank, and outline the function each has in the global economy.

Haha nice timing.

WTO: Economic in focus -> Role is to implement, advance and enforce global trade agreements and resolve trade disputes.
-> Settles disputes, allows a country to impose trade sanctions on another if they refuse to comply with WTO's judgement
-> Although it attempts to promote global trade agreements, has failed to successfully implement any (collapse of the Doha Round)
-> Nevertheless still has potential

World Bank: Development in focus -> Role is to help improve economic development in poorer countries.
-> The WB funds infrastructure projects and provides loans to developing countries at lower rates.
-> Set out to achieve the MDGs, provides support of the HIPC

 

[hup]

first topic is boring

 

[Bobbo1]

1. Question 1 refers to the following table:
.............y1 y2
real gdp 300 300
nominal gdp 400 450

what is the annual rate of inflation between these periods?
(a) 50 per cent
(b) 33 per cent
(c) 12.5 per cent
(d) zero per cent

2. Suppose that in a country with a population of 50 million, there are 30 million employed and 2 million unemployed. What is the unemployment rate?
(a) 4%
(b) 6.25%
(c) 6.67%
(d) 10%

3. Which of the following items would appear as a debit in the income section of australia's balance of payments?
(a) an australian buying shares overseas
(b) an australian company buying computers from taiwan
(c) a foreign company paying tax to the australian government
(d) an australian company paying interest to overseas investors.

1) c
2) b
3) d

 

[aphorae]

1) c
2) b
3) d

gj~

1. The following schedule gives production possibilities for two countries:
...........Pickles OR Pineapples
COUNTRY X 80 OR 100
COUNTRY Y 20 OR 50

It shows that Country Y has:
(a) a comparative advantage in the production of pickles
(b) more resources devoted to pickle production than Country X
(c) a comparative advantage in the production of pineapples
(d) lower per unit dollar costs than Country X.

2. In any given year, by definition:
(a) the current account will balance but the total volume of payments may or may not balance.
(b) the total volume of payments will balance but the current account may or may not balance.
(c) the borrowing increases a country's productive capacity
(d) the borrowing is used to pay the welfare costs of a recession.

3. To reduce foreign debt, exports need to increase relative to imports. Which one of the
following would not be appropriate?
(a) increasing the productivity of workers
(b) decreasing aggregate demand in the economy
(c) increasing government spending in the economy
(d) increasing savings in the economy

 

[Aclipse]

Explain the rationale for microeconomic policies in terms of shifts in aggregrate supply and economic efficiency

Examine the role of microeconomic policies in encouraging structural change in the Australian economy

 

[abc123yoyo]

1) c
2) b
3) d

How did you c for Q.1 and b for Q.2??

 

[abc123yoyo]

gj~

1. The following schedule gives production possibilities for two countries:
...........Pickles OR Pineapples
COUNTRY X 80 OR 100
COUNTRY Y 20 OR 50

It shows that Country Y has:
(a) a comparative advantage in the production of pickles
(b) more resources devoted to pickle production than Country X
(c) a comparative advantage in the production of pineapples
(d) lower per unit dollar costs than Country X.

2. In any given year, by definition:
(a) the current account will balance but the total volume of payments may or may not balance.
(b) the total volume of payments will balance but the current account may or may not balance.
(c) the borrowing increases a country's productive capacity
(d) the borrowing is used to pay the welfare costs of a recession.

3. To reduce foreign debt, exports need to increase relative to imports. Which one of the
following would not be appropriate?
(a) increasing the productivity of workers
(b) decreasing aggregate demand in the economy
(c) increasing government spending in the economy
(d) increasing savings in the economy

1. c
2. b (or maybe a)
3. thats a good question O.O

 

[abc123yoyo]

Q: Why does an increase in GST increase Australia's Gini coefficient as opposed to an increase in welfare payments or an increase in the top marginal tax rate or increased public housing?

 

[aphorae]

How did you c for Q.1 and b for Q.2??

q1 -> 450/400 - 1
q2 -> 2/(30+2)

1. c
2. b (or maybe a)
3. thats a good question O.O

I don't have the answers but these are mine

1. yep
2. yep b -> it's not a because the CA balances with KAFA, but not by itself (remember 'current account deficit' + surplus?)
3. c.

for 3, a would increase international competitiveness and thus increase exports, b would lower consumption/demand and hence discourage imports, c would increase ad and hence growth and income/consumption + imports. d would imply lower consumption as savings by households increase (p.s. this would also fund investment for domestic firms = less repayments overseas = up competitiveness/profit/more potential for exports)

Q: Why does an increase in GST increase Australia's Gini coefficient as opposed to an increase in welfare payments or an increase in the top marginal tax rate or increased public housing?

The Gini coefficient is a measure of the degree of income inequality in an economy. An increase in GST would increase the Gini coefficient as it is a regressive taxation system. Since it is a broad tax (currently 10%) on most goods and services, it would worsen the distribution of income as low-income households have a proportionally less amount of disposable income left. This is opposed to welfare payments which would increase the disposable income for low income households as Australia has a means-tested welfare system, or an increase in public housing which would again benefit low-income earners as there is an income/asset limit to utilising this resource, thus lowering the GC. Similarly, an increase in the top marginal tax rate would also lower the GC as it would lower the amount of disposable income available to high-income earners.

 

[aphorae]

New questions:

1. Which of the following arguments for protection of a particular industry is economically justifiable over the long run?
(a) To prevent dumping.
(b) To reduce the current account deficit.
(c) To protect local employment.
(d) The infant industry argument.

23. One disadvantage of free trade is that changing patterns of comparative advantage are likely to cause:
(a) transitional periods of unemployment for some workers.
(b) a long-run increase in the level of unemployment of skilled workers.
(c) a worsening of the income distribution because consumers lose out relative to producers.
(d) capital to flow here and there between countries.

24. The three largest trading partners of Australia (by value of trade) are
(a) the United States, China and the United Kingdom.
(b) the United States, China and New Zealand.
(c) Japan, the United States and New Zealand.
(d) Japan, the United States and China.

 

[hup]

New questions:

1. Which of the following arguments for protection of a particular industry is economically justifiable over the long run?
(a) To prevent dumping.
(b) To reduce the current account deficit.
(c) To protect local employment.
(d) The infant industry argument.

23. One disadvantage of free trade is that changing patterns of comparative advantage are likely to cause:
(a) transitional periods of unemployment for some workers.
(b) a long-run increase in the level of unemployment of skilled workers.
(c) a worsening of the income distribution because consumers lose out relative to producers.
(d) capital to flow here and there between countries.

24. The three largest trading partners of Australia (by value of trade) are
(a) the United States, China and the United Kingdom.
(b) the United States, China and New Zealand.
(c) Japan, the United States and New Zealand.
(d) Japan, the United States and China.

1a
2a
3d

 

[aphorae]

1a
2a
3d

woah that was quick lol

yeee gj feel free to ask your own. in the meantime here are some more


1. The international transactions of Country Z in 2004 were as follows.

ITEM ($billion)
Imports of goods 30
Exports of goods 40
Imports of services 25
Exports of services 20
Payment of interest and dividends by country Z to overseas 30
Receipt of interest and dividends by country Z from overseas 15
Net investment overseas 5
Net current transfers 2

What is the balance of payments on current account (in billions of dollars)?
(a) -22
(b) -8
(c) 5
(d) 32

2. What could cause a favourable movement in a country's ToT?
(a) Import prices rising faster than export prices
(b) Import prices rising and export prices falling
(c) Export prices rising and import prices rising
(d) Exportprices rising and import prices falling

3. If US investors sold shares in Australian mining companies, how would this be recorded in the Australian balance of payments?
(a) As a debit in the current account
(b) As a credit in the current account
(c) As a debit in the financial account
(d) As a debit in the capital account

 

[abc123yoyo]

1a
2a
3d

1. b** because dumping only occurs temporarily, employment benefits over the long term and infant industry is temporary

Q: What are the main drivers of the globalisation process and explain how.

 

[hup]

1. b** because dumping only occurs temporarily, employment benefits over the long term and infant industry is temporary

Q: What are the main drivers of the globalisation process and explain how.

the answer is a; dumping is not a temporary thing
dumping and defence reasons are the 'only' justified reasons for protection

 

[hup]

woah that was quick lol

yeee gj feel free to ask your own. in the meantime here are some more


1. The international transactions of Country Z in 2004 were as follows.

ITEM ($billion)
Imports of goods 30
Exports of goods 40
Imports of services 25
Exports of services 20
Payment of interest and dividends by country Z to overseas 30
Receipt of interest and dividends by country Z from overseas 15
Net investment overseas 5
Net current transfers 2

What is the balance of payments on current account (in billions of dollars)?
(a) -22
(b) -8
(c) 5
(d) 32

2. What could cause a favourable movement in a country's ToT?
(a) Import prices rising faster than export prices
(b) Import prices rising and export prices falling
(c) Export prices rising and import prices rising
(d) Exportprices rising and import prices falling

3. If US investors sold shares in Australian mining companies, how would this be recorded in the Australian balance of payments?
(a) As a debit in the current account
(b) As a credit in the current account
(c) As a debit in the financial account
(d) As a debit in the capital account

1b
2d
3c?

Discuss a possible conflict between the goals of economic growth and the preservation of the natural environment. (5 marks)