Economics

Why is public transport considered a private good?
A. It is non-excludable and is paid for from taxation.
B. It is excludable by price and is rival in consumption.
C. It is rival in consumption and is non-excludable by price.
D. It is excludable by price and is provided by the government.

Which of the following is the main rationale for the use of macroeconomic policy?
A. Improving productivity and efficiency
B. Increasing economic growth and aggregate supply
C. Managing stabilisation and shifts in aggregate demand
D. Achieving environmental sustainability and lower costs

What is a key characteristic of a regional business cycle?
A. Economic fluctuations that occur in rural areas
B. Economic stability between countries across the globe
C. Consistent growth rates in all states within an economy
D. Integration of economic activity across neighbouring countries

The table shows selected data for a hypothetical economy.
Based on the information in the table, which of the following is correct?
A. There is a trade deficit.
B. There is a government surplus.
C. Injections are greater than leakages.
D. Leakages are greater than injections.

How is unconditional foreign aid provided by the Australian government recorded in the Balance of Payments?
A. A credit in the current account
B. A debit in the current account
C. A credit in the capital account
D. A debit in the capital account

Which component of the federal budget is directly affected by automatic stabilisers?
A. Cyclical
B. External
C. Structural
D. Discretionary

Which of the following policy options could use market forces to reduce negative environmental outcomes?
A. Implementing an emissions trading scheme
B. Introducing a new tax on electric and hybrid cars
C. Ceasing the operation of coal-fired power stations
D. Imposing fines for harmful emissions from households

The table shows selected information for the Balance of Payments for an economy with a floating exchange rate.

What is the value of the financial account?
A. −$80 billion B. −$60 billion
C. $10 billion D.$280 billion

The table shows selected data for a hypothetical economy.

Which row in the table shows the most likely reasons for changes in inflation rates from Year 1 to Year 2?

The graph shows the effect of a quota on imported machinery in the domestic market, with the initial equilibrium at X.

The government chooses to reduce, but not eliminate, the quota.
From the prices shown on the graph, which is the most likely new price of machinery?
A. P1
B. P2
C. P3
D. P4

The table shows hypothetical data for an economy.

Which row of the table shows the export price index of this economy in Year 1 and Year 2?

The graph shows market failure as a negative externality of production.
What is the per unit tax required to correct the market failure shown on the graph?
A. P0 − P1
B. P2 − P1
C. P2 − P3
D. P1 − P3

Outline ONE role of the Organisation for Economic Co-operation and Development (OECD) in the global economy. In your answer, refer to a specific example.

Explain the limitations of using income as a single measure of quality of life.

Discuss the impact of world economic development on environmental sustainability.

Discuss the effects of a depreciation of a currency on domestic businesses.

Use the following graph to answer parts (a) and (b).
Outline ONE global factor that could cause the movement from D to D1 in the graph.

Use the following graph to answer parts (a) and (b).
Explain how the Reserve Bank could directly influence the value of the Australian currency to move from P1 to P.

Use the information to answer parts (b)−(d).
The following information refers to a hypothetical economy which has a Non-Accelerating Inflation Rate of Unemployment (NAIRU) of 5%.

Explain how TWO policy options could be implemented to reduce the NAIRU of this economy.

Use the information to answer parts (b)−(d).
The following information refers to a hypothetical economy which has a Non-Accelerating Inflation Rate of Unemployment (NAIRU) of 5%.

Using the information provided on the previous page, outline a possible cause of the increase in unemployment present in the economy in Year 2.

Use the information to answer parts (b)−(d).
The following information refers to a hypothetical economy which has a Non-Accelerating Inflation Rate of Unemployment (NAIRU) of 5%.

Outline ONE factor that may have changed the participation rate in this economy.

Outline why ONE specific group may experience higher than average unemployment in Australia.