Question 1

Australia has continually run current account deficits over much of its history. This implies:

Accepted Answer

A)  we are living beyond our sustainable means. 
B)  most of our assets are now owned by foreign interests. 
C)  our capital stock is dwindling. 
D)  we have always had an excess of savings over investment. 
A)  we are living beyond our sustainable means. 
B)  most of our assets are now owned by foreign interests. 
C)  our capital stock is dwindling. 
D)  we have always had an excess of savings over investment.

Question 2

Using tariffs to trade only with some developing countries is often called:

Accepted Answer

A)  the national safety argument. 
B)  the cheap foreign labour argument. 
C)  the baby industry argument. 
D)  the unemployment argument. 
A)  the national safety argument. 
B)  the cheap foreign labour argument. 
C)  the baby industry argument. 
D)  the unemployment argument.

Question 3

If the yen price of dollars falls, then the dollar price of yen rises.

Accepted Answer

A) True 
 B)False

Question 4

Assume A$1.05 is exchangeable for one US dollar. The exchange rate is:

Accepted Answer

A)  US$1=A$0.95. 
B)  A$1=US$1.05. 
C)  A$1=US$0.95. 
D)  both A$1=US$0.95 and US$1=A$1.05. 
A)  US$1=A$0.95. 
B)  A$1=US$1.05. 
C)  A$1=US$0.95. 
D)  both A$1=US$0.95 and US$1=A$1.05.

Question 5

Which of the following are examples of free trade agreements?

Accepted Answer

A)  OPEC. 
B)  EU countries. 
C)  UN. 
D)  WTO. 
A)  OPEC. 
B)  EU countries. 
C)  UN. 
D)  WTO.

Question 6

Trade restrictions imposed in the name of national security have been recommended by protectionists in order to:

Accepted Answer

A)  develop strong international connections with other industries. 
B)  avoid competition with overseas producers. 
C)  have cheaper domestic labour. 
D)  not be dependent on foreign countries for defence-related goods in wartime. 
A)  develop strong international connections with other industries. 
B)  avoid competition with overseas producers. 
C)  have cheaper domestic labour. 
D)  not be dependent on foreign countries for defence-related goods in wartime.

Question 7

If the exchange rate of yen for dollars increases from 100 yen = $1 to 110 yen = $1, then:

Accepted Answer

A)  Japanese-produced goods would become more expensive. 
B)  the dollar has depreciated. 
C)  the yen has appreciated. 
D)  Australian-produced goods would become more expensive. 
A)  Japanese-produced goods would become more expensive. 
B)  the dollar has depreciated. 
C)  the yen has appreciated. 
D)  Australian-produced goods would become more expensive.

Question 8

Which of the following are expressed concerns over regional trade agreements?

Accepted Answer

A)  They will ultimately have no real economic benefits. 
B)  It may make future multilateral agreements more difficult. 
C)  Some countries will gain, but many will lose. 
D)  They never involve the world's major trading nations. 
A)  They will ultimately have no real economic benefits. 
B)  It may make future multilateral agreements more difficult. 
C)  Some countries will gain, but many will lose. 
D)  They never involve the world's major trading nations.

Question 9

The infant industry argument is based on:

Accepted Answer

A)  the idea that competitive pressure from established foreign firms would encourage the infant industry's prospects for future growth. 
B)  the idea that failure to shelter these infant industries tends to lead to political instability. 
C)  the idea that small firms must be protected. 
D)  the idea that the industry is not yet ready to compete with established foreign
Competitors. 
A)  the idea that competitive pressure from established foreign firms would encourage the infant industry's prospects for future growth. 
B)  the idea that failure to shelter these infant industries tends to lead to political instability. 
C)  the idea that small firms must be protected. 
D)  the idea that the industry is not yet ready to compete with established foreign
Competitors.

Question 10

If a country's production possibilities equal its consumption possibilities, then we can say that:

Accepted Answer

A)  net exports equal zero. 
B)  the country is self-sufficient. 
C)  its exports must equal its imports. 
D)  the country has an absolute advantage in everything. 
A)  net exports equal zero. 
B)  the country is self-sufficient. 
C)  its exports must equal its imports. 
D)  the country has an absolute advantage in everything.

Question 11

One reason put forward to explain the growth in Australia's net foreign liabilities over the past 25 years is that:

Accepted Answer

A)  international capital is now more mobile. 
B)  domestic investment is now too high. 
C)  domestic investment is now too low. 
D)  a substantial increase in foreign income relative to Australia has occurred. 
A)  international capital is now more mobile. 
B)  domestic investment is now too high. 
C)  domestic investment is now too low. 
D)  a substantial increase in foreign income relative to Australia has occurred.

Question 12

When a nation totally bans trade with another country, it is imposing:

Accepted Answer

A)  free trade. 
B)  an embargo. 
C)  a quota. 
D)  a tariff. 
A)  free trade. 
B)  an embargo. 
C)  a quota. 
D)  a tariff.

Australia has continually run current account deficits over much of its history. This implies:

Using tariffs to trade only with some developing countries is often called:

If the yen price of dollars falls, then the dollar price of yen rises.

Assume A$1.05 is exchangeable for one US dollar. The exchange rate is:

Which of the following are examples of free trade agreements?

Trade restrictions imposed in the name of national security have been recommended by protectionists in order to:

If the exchange rate of yen for dollars increases from 100 yen = $1 to 110 yen = $1, then:

Which of the following are expressed concerns over regional trade agreements?

The infant industry argument is based on:

If a country's production possibilities equal its consumption possibilities, then we can say that:

One reason put forward to explain the growth in Australia's net foreign liabilities over the past 25 years is that:

When a nation totally bans trade with another country, it is imposing:

Thinking Like an Economist

Applying Graphs to Economics

Production Possibilities and Opportunity Cost

Market Demand and Supply

Markets in Action

Elasticity of Demand and Supply

Production Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Policy Issues: Housing Affordability and Climate Change

Measuring the Size of the Economy

Business Cycles and Economic Growth

Inflation and Unemployment

A Simple Model of the Macro Economy

The Monetary and Financial System

Macroeconomic Policy I: Monetary Policy

Macroeconomic Policy II: Fiscal Policy

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Exam 19: International Trade and Finance

Australia has continually run current account deficits over much of its history. This implies:

Using tariffs to trade only with some developing countries is often called:

If the yen price of dollars falls, then the dollar price of yen rises.

Assume A$1.05 is exchangeable for one US dollar. The exchange rate is:

Which of the following are examples of free trade agreements?

Trade restrictions imposed in the name of national security have been recommended by protectionists in order to:

If the exchange rate of yen for dollars increases from 100 yen = $1 to 110 yen = $1, then:

Which of the following are expressed concerns over regional trade agreements?

The infant industry argument is based on:

If a country's production possibilities equal its consumption possibilities, then we can say that:

One reason put forward to explain the growth in Australia's net foreign liabilities over the past 25 years is that:

When a nation totally bans trade with another country, it is imposing:

Thinking Like an Economist

Applying Graphs to Economics

Production Possibilities and Opportunity Cost

Market Demand and Supply

Markets in Action

Elasticity of Demand and Supply

Production Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Policy Issues: Housing Affordability and Climate Change

Measuring the Size of the Economy

Business Cycles and Economic Growth

Inflation and Unemployment

A Simple Model of the Macro Economy

The Monetary and Financial System

Macroeconomic Policy I: Monetary Policy

Macroeconomic Policy II: Fiscal Policy

Filters