Deck 2: The Australian and Global Economies

Question 1

The largest share of total production in Australia is

A)imported goods and services.
B)government goods and services.
C)consumption goods and services.
D)capital goods.
E)exported goods and services.

Answer 1

C

Question 2

Goods and services bought by the government account for about ________ per cent of total production.

A)17
B)67
C)35
D)2
E)8

Answer 2

A

Question 3

Which of the following is NOT considered one of the factors of production?

A)Capital
B)Entrepreneurship
C)Labour
D)Technology
E)Land

Answer 3

D

Question 4

Over the past 70 years,which of the following has occurred?
I)The service sector has grown so that now about 80 per cent of workers are employed in the service industry.
Ii)The manufacturing sector has shrunk,so now about 20 per cent of workers are employed in the production of goods.
Iii)The percentage of workers employed in the service industry has increased steadily.

A)i only
B)i and iii
C)ii and iii
D)ii only
E)i,ii and iii

Question 5

An item that is purchased to increase businesses' productive resources is

A)an export.
B)a productive good.
C)a government good.
D)a consumption good.
E)a capital good.

Question 6

Which of the following is NOT considered an example of a capital good?

A)An Australian government bond
B)A miner's cap
C)A stethoscope
D)A GPS tracking device
E)An airport bookshop

Question 7

Items that are purchased by individuals for their own enjoyment are called

A)capital goods.
B)government goods and services.
C)private goods.
D)exports of goods and services.
E)consumption goods and services.

Question 8

The difference between consumption and capital goods is that

A)capital goods are used to produce additional goods while consumption goods are not.
B)consumption goods can be enjoyed by many people at the same time.
C)capital goods are provided by the government.
D)it is illegal to export capital goods.
E)only big corporations can afford capital goods.

Question 9

What would be an example of a consumption service?

A)Antonio,the manager of your local chicken shop,purchases a new deep fryer.
B)The local driver's licence office purchases a new digital camera and printer.
C)Tony Abbott purchases furniture for his office.
D)Jake buys an iPhone.
E)Rhianna gets a haircut.

Question 10

Which of the following is a consumption good or service?

A)A personal computer purchased in order to play games at home.
B)A FedEx truck delivering Christmas gifts.
C)The Endeavour space shuttle.
D)A Virgin Airlines ticket counter.
E)A satellite dish installed by Foxtel to download programs that are then distributed through its cable system.

Question 11

Which of the following is NOT considered a consumption good?

A)Nike running shoes
B)Marriage counselling services
C)An Australian government bond
D)A Subway sandwich
E)An Australia Post delivery van

Question 12

What would be an example of a consumption good?

A)Rhianna gets a haircut.
B)Antonio,the manager of the local chicken shop,purchases a new deep fryer.
C)Jake buys an iPhone.
D)Tony Abbott purchases furniture for his office.
E)The local driver's licence office purchases a new digital camera and printer.

Question 13

Items bought by individuals to provide personal enjoyment are termed

A)personal goods.
B)consumption goods.
C)consumption or investment goods.
D)pleasure goods.
E)standard goods.

Question 14

Computers and insurance coverage produced in Australia and sold to people in other nations are categorised as

A)foreign capital goods.
B)Australian exports of goods and services.
C)Australian consumption goods and services.
D)Australian government goods and services.
E)Australian imports of goods and services.

Question 15

The Colorado Ski Shop,based in Boulder,Colorado,sold 60 ski jackets to a Belgian company's headquarters located in Paris,France.The ski jackets are a(n)

A)consumption service.
B)import.
C)export good.
D)government good.
E)capital good.

Question 16

An export good is a good produced

A)in another country and purchased by foreigners not residing in Australia.
B)in another country and purchased by Australian residents.
C)in Australia and sold to foreigners living in Australia.
D)in Australia and sold in other countries.
E)by foreigners in Australia and purchased by Australian households.

Question 17

What would be an example of a government good?

A)Jake buys an iPhone.
B)Rhianna gets a haircut.
C)Antonio,the manager of your local fish and chip shop,purchases a new deep fryer.
D)The local driver's licence office purchases a new digital camera and printer.
E)Tony Abbott purchases furniture for his office.

Question 18

What would be an example of a capital good?

A)The local driver's licence office purchases a new digital camera and printer.
B)Antonio,the manager of the local fish and chip shop,purchases a new deep fryer.
C)Rhianna gets a haircut.
D)Apple sells computers to Japan.
E)Jeanette buys a new dress.

Question 19

Goods produced in Australia and sold in other countries are called

A)capital account goods.
B)exports.
C)capital goods.
D)imports.
E)foreign goods.

Question 20

Items bought by businesses to help produce other goods and services are called

A)government goods and services.
B)productive goods.
C)exports of goods and services.
D)capital goods.
E)consumption goods and services.

Question 21

Human capital can be increased through

A)investment in new technology.
B)education,on-the-job training and work experience.
C)increasing the nation's production of consumption goods.
D)decreases in population.
E)investment in new machinery.

Question 22

Jan is attending university and studying to be an investment broker.To improve her chances of employment following university,she has interned at a top brokerage firm during the last two summers.Jan's internship has increased her

A)consumption services.
B)entrepreneurship capital.
C)natural labour.
D)natural resources.
E)human capital.

Question 23

Over time,the percentage of total employment in services has ________ and in agriculture employment has ________.

A)increased;increased
B)stayed about the same;decreased
C)decreased;increased
D)increased;decreased
E)stayed about the same;increased

Question 24

Which factor of production does human capital enhance?
I)Land
Ii)Labour
Iii)Capital

A)i only
B)ii only
C)iii only
D)i and ii
E)i,ii and iii

Question 25

The productive resource that includes all the 'gifts of nature' is called

A)capital.
B)entrepreneurship.
C)labour.
D)land.
E)land if undeveloped and capital if developed.

Question 26

As a factor of production,oil reserves are counted as

A)financial capital.
B)capital.
C)land.
D)entrepreneurship.
E)labour.

Question 27

Human capital ________ as you work.As a result,the ________ of goods and services ________.

A)does not change;quality;does not change.
B)increases;quantity;increases.
C)improves;quality;does not change.
D)declines;quality;increases.
E)decreases;quantity;decreases.

Question 28

Which of the following is NOT considered a factor of production?

A)Labour
B)Money
C)Entrepreneurial ideas
D)Capital
E)Land

Question 29

Economists classify energy and water as part of which factor of production?

A)Labour
B)Entrepreneurship
C)Capital
D)Land if undeveloped and capital if developed
E)Land

Question 30

Which of the following correctly lists the categories of factors of production?

A)Labour,money,stocks and bonds
B)Forests,fish,buildings,capital and entrepreneurship
C)Land,buildings,capital and entrepreneurship
D)Labour,machines,buildings,capital and entrepreneurship
E)Land,labour,capital and entrepreneurship

Question 31

Australia possesses a large amount of human capital.As a result of this fact,in Australia there is a

A)large number of people and a great deal of land.
B)large amount of machinery and equipment.
C)large amount of machinery (capital)that is run by people (humans).
D)highly skilled and educated labour force.
E)large number of kind and generous humans.

Question 32

Capital,as a factor of production,refers to

A)stocks and bonds but not money.
B)the production factors imported from abroad.
C)money,stocks and bonds.
D)the production technology used by firms.
E)the tools and instruments used to produce other goods and services.

Question 33

Which of the following is NOT directly related to human capital?

A)A summer internship
B)Knowledge of computer programming
C)An MRI machine
D)A university education
E)An understanding of real estate markets

Question 34

The concept of human capital describes

A)the number of machines per employed worker.
B)the human population,that is,the quantity of labour.
C)human skills,that is,the quality of labour.
D)the number of machines (capital)that have been produced by people (humans).
E)the number of workers per operating machine.

Question 35

Which of the following has been the bigger contributor to increases in the quantity of labour in Australia during the past 50 years?

A)The proportion of women taking paid jobs has trended up.
B)Total population growth has increased dramatically.
C)The proportion of young adults entering university has trended down.
D)The proportion of seniors taking early retirement has trended down.
E)The proportion of men taking paid jobs has trended up.

Question 36

Goods and services are produced by using four factors of production:

A)labour,human capital,physical capital and financial capital.
B)land,labour,capital and entrepreneurship.
C)land,labour,capital and money.
D)land,labour,money and equipment.
E)natural resources,human resources,financial assets and entrepreneurial resources.

Question 37

Factors of production are the

A)goods that are bought by businesses to produce productive resources.
B)productive resources used by government to increase the productivity of consumption.
C)goods that are bought by individuals and used to provide personal enjoyment.
D)goods and services produced by the economy.
E)productive resources used to produce goods and services.

Question 38

Capital is a factor of production.An example of capital as a factor of production is

A)stocks.
B)money.
C)education.
D)bonds.
E)machines.

Question 39

Capital is a factor of production.Which of the following is an example of capital?
I)$1,000 in money
Ii)100 shares of Microsoft stock
Iii)$10,000 in bonds issued by General Motors
Iv)A drill press in your local engineering firm

A)i and ii
B)ii only
C)iii only
D)iv only
E)ii and iii

Question 40

The total value of capital in Australia is around

A)$10 trillion.
B)$50 trillion.
C)$100 trillion.
D)$79 trillion.
E)$145 trillion.

Question 41

In Australia,the productive factor that,as a group,receives the largest fraction of the nation's total income is

A)consumption goods and services.
B)land.
C)labour.
D)capital.
E)entrepreneurship.

Question 42

The data show that more than 60 per cent of the total income earned in Australia goes to

A)labour.
B)land.
C)entrepreneurship.
D)capital.
E)profit.

Question 43

The income paid to labour is called

A)rent.
B)profit.
C)interest.
D)wages.
E)human capital.

Question 44

Payments to the factors of production are

A)rent,wages,interest,and profit or loss.
B)land,labour,capital and entrepreneurship.
C)rent,interest,bonds,and profit or loss.
D)rent,wages,profit or loss,and bonuses.
E)rent,mortgage,interest and bonds.

Question 45

________ paid for the use of land;________ paid for the services of labour;and ________ paid for the use of capital.

A)Rent is;interest is;wages are
B)Rent is;wages are;profit is
C)Interest is;wages are;profit is
D)Mortgages are;interest is;wages are
E)Rent is;wages are;interest is

Question 46

Which of the following is NOT considered capital?

A)A computer used by your lecturer for presentations in class
B)Stocks and bonds that are sold by Pepsico
C)The furniture in the Prime Minister's office
D)An assembly line at a General Motors plant
E)A nail gun used for building houses

Question 47

The personal distribution of income measures which of the following?

A)The distribution of earnings by the factors of production.
B)The proportion of income generated by the four types of expenditures on goods and services.
C)How federal tax revenues are related to the type of businesses that employs the taxpayers.
D)The distribution of income among nations.
E)The distribution of income among households.

Question 48

Which factor of production is paid 'interest'?

A)Human capital
B)Capital
C)Land
D)Entrepreneurship
E)Labour

Question 49

The personal distribution of income in Australia shows that

A)the poorest 60 per cent of individuals receive approximately 50 per cent of total income.
B)income is equally distributed.
C)the richest 20 per cent of individuals receive approximately 50 per cent of total income.
D)the poorest 20 per cent of individuals receive approximately 20 per cent of total income.
E)the richest 20 per cent of individuals receive approximately 25 per cent of total income.

Question 50

The owners of the resource ________ are paid ________.

A)labour;profit
B)entrepreneurship;wages
C)capital;rent
D)land;wages
E)capital;interest

Question 51

In Australia,the poorest 20 per cent of households earn roughly ________ per cent of total income.

A)15
B)0)5
C)10
D)3
E)20

Question 52

One of the productive resources is capital.Capital includes

A)money in a savings account at a bank.
B)tools,buildings and machine tools.
C)money borrowed from a bank.
D)toys,t-shirts,CD players,and pencils.
E)a company's stocks and bonds.

Question 53

According to the functional distribution of income,in Australia

A)the income earned by capital and labour are approximately equal.
B)entrepreneurs earn most of the income.
C)capital earns most of the income.
D)labour earns most of the income.
E)land earns most of the income.

Question 54

Entrepreneurship,as a factor of production,refers to

A)the technology used by firms.
B)the human capital accumulated by workers.
C)the value of the firm's stock.
D)the capital the firm uses.
E)the human resource that organises labour,land and capital.

Question 55

The productive resource that organises labour,land and capital is

A)capital.
B)entrepreneurship.
C)human capital.
D)financial capital.
E)government.

Question 56

The functional distribution of income measures which of the following?

A)The distribution of income among households.
B)The distribution of income among nations.
C)The proportion of income generated by the four types of expenditures on goods and services.
D)The distribution of earnings by the factors of production.
E)How federal tax revenues are related to the business function that employs taxpayers.

Question 57

A newspaper printing press is an example of

A)a factor of production.
B)a good that was once an output of the production process.
C)something that influences labour productivity.
D)a capital good.
E)All of the above are correct.

Question 58

The majority of the income earned in Australia is paid in

A)profit.
B)dividends.
C)wages.
D)rent.
E)interest.

Question 59

The income paid for the use of land is called

A)rent.
B)interest.
C)wages.
D)land capital.
E)profit.

Question 60

Which factor of production is paid 'profit'?

A)Labour
B)Entrepreneurship
C)Human capital
D)Land
E)Capital

Question 61

The income earned by entrepreneurs is

A)interest.
B)profit or loss.
C)a mixture of rent,wages,interest and profit.
D)rent,wages and interest.
E)wages.

Question 62

________ is the human resource that organises labour,land and capital.

A)Entrepreneurship
B)Profit
C)Human skill
D)Human capital
E)A gift of nature

Question 63

Human capital is

A)the knowledge humans accumulate through education and experience.
B)machinery that needs human supervision.
C)any type of machinery.
D)solely the innate ability we are born with.
E)the money humans have saved.

Question 64

The personal distribution of income shows

A)that labour receives the largest percentage of total income.
B)that the poorest 20 per cent of households receive less than 4 per cent of total income.
C)that the richest 20 per cent of households receive 23 per cent of total income.
D)that interest accounts for most of the income of the richest 20 per cent of households.
E)how profit accounts for the largest fraction of total income.

Question 65

Which of the following correctly lists the categories of factors of production?

A)Machines,buildings,land and money
B)Hardware,software,land and money
C)Capital,money and labour
D)Land,labour,capital and entrepreneurship
E)Owners,workers and consumers

Question 66

Dividing the nation's income among the factors of production,the largest percentage is paid to

A)labour.
B)labour and capital,with each receiving about 41 per cent of the total income.
C)land.
D)capital.
E)entrepreneurship.

Question 67

Goods and services produced in Australia and sold in other countries are called

A)import goods and services.
B)government goods and services.
C)capital goods.
D)consumption goods and services.
E)export goods and services.

Question 68

In economics,the factor of production 'land' includes all of the following EXCEPT

A)energy.
B)animals,birds and fish.
C)wild plants.
D)oil.
E)plastics.

Question 69

Compared to the world,the rate of Australian population growth is

A)about the same as in the world as a whole.
B)much faster than in the world as a whole.
C)incomparable because we do not have accurate world population statistics.
D)incomparable because Australian residents are born with a much greater chance of accumulating a lot of human capital.
E)slower than in the world as a whole.

Question 70

The richest 20 per cent of individuals in Australia receive about ________ of the nation's total income.

A)51 per cent
B)21 per cent
C)99 per cent
D)91 per cent
E)23 per cent

Question 71

When Ethan continues his education beyond high school he is increasing his

A)human capital.
B)wage rate.
C)rent.
D)capital.
E)quantity of labour.

Question 72

When the total Australian production of goods and services is divided into consumption goods and services,capital goods,government goods and services,and export goods and services,the largest component is

A)capital goods and government goods and services tie for the largest component.
B)capital goods.
C)consumption goods and services.
D)export goods and services.
E)government goods and services.

Question 73

Approximately ________ people live in Australia and ________ people live in the world.

A)23 million;8 billion
B)21 million;6 billion
C)32 million;5 billion
D)23 million;7 billion
E)23 million;3 billion

Question 74

The most people live in ________ economies and the fewest people live in ________ economies.

A)developing;advanced
B)emerging market;developing
C)advanced;developing
D)advanced;emerging market
E)developing;emerging market

Question 75

________ earns the highest amount of income among the factors of production in Australia.

A)Capital
B)Land
C)Investment
D)Entrepreneurship
E)Labour

Question 76

Wages are paid to ________ and interest is paid to ________.

A)entrepreneurs;land
B)entrepreneurs;capital
C)labour;land
D)labour;capital
E)labour;entrepreneurs

Question 77

When describing the IMF broad country classification,the most accurate statement is that

A)the category with the greatest number of countries is the advanced economies.
B)the emerging market economies are countries that were,until the early 1990s,part of the Soviet Union or its satellites.
C)about 50 per cent of the world's population lives in the advanced economies and the other 50 per cent lives in the emerging market and developing economies.
D)most of the world's population lives in advanced economies.
E)most of the nations in Western Europe are considered emerging market economies.

Question 78

An example of a capital good is

A)a haircut.
B)a fibre optic cable TV system.
C)an insurance policy.
D)a slice of pizza.
E)an iPod.

Question 79

In Australia,the poorest 20 per cent of households receive about ________ per cent of total income.

A)15
B)23
C)49
D)20
E)3

Question 80

In Australia,the richest 20 per cent of households receive about ________ per cent of total income.

A)15
B)4
C)50
D)33
E)23