VCE Economics

1.

1 point

If Australia’s interest rates fall relative to overseas interest rates, the most likely effect would be

a rise in capital inflow and an appreciation of the Australian dollar.

a fall in capital inflow and a depreciation of the Australian dollar.

a rise in capital inflow and a depreciation of the Australian dollar.

a fall in capital inflow and an appreciation of the Australian dollar.

2.

1 point

The most likely consequence of an increased rate of inflation in Australia is

an increase in the proportion of Gross Domestic Product (GDP) collected in taxation revenue.

an improvement in Australia’s international competitiveness.

an increase in business confidence

that those on fixed incomes are better off.

3.

1 point

Economics is primarily concerned with the question of how

unlimited human needs and wants can be satisfied through the use of limited resources

unlimited factors of production can be best allocated for different uses.

limited government funds should be used to achieve specific political and social goals.

limited human needs and wants can be satisfied through the use of unlimited resources.

4.

1 point

The demand for the Alpha smart phone is likely to become more price elastic when

the cost of producing the Alpha smart phone falls.

Alpha launches a successful advertising campaign.

several competitors introduce products that have features similar to the Alpha smart phone.

consumers begin to see the Alpha smart phone as a necessity, not a luxury.

5.

1 point

Which one of the following is the most appropriate macroeconomic policy mix if the Australian economy is experiencing low rates of economic growth and rising levels of unemployment?

a decrease in government spending and the sale of government securities by the RBA

a decrease in taxation and the sale of government securities by the Reserve Bank of Australia (RBA)

an increase in government spending and the purchase of government securities by the RBA

an increase in taxation and the purchase of government securities by the RBA

6.

1 point

How might an increase in the rate of economic growth impact on government revenues and outlays?

progressive taxation receipts decrease and unemployment benefit payments increase

progressive taxation receipts increase and unemployment benefit payments decrease

both progressive taxation receipts and unemployment benefit payments increase

both progressive taxation receipts and unemployment benefit payments decrease

7.

1 point

Which one of the following will cause the supply curve for a good or service to increase (shift to the right)?

an increase in worker productivity

an increase in the level of income

a decrease in the price of a substitute good or service

an increase in government taxes

8.

1 point

An increase in the price of strawberries would most likely result from

an increase in the price of a complementary product, such as cream.

a decrease in the price of a substitute product, such as raspberries.

a decrease in the price of fertilisers used to grow strawberries.

major floods in agricultural areas where strawberries are grown.

9.

1 point

Which one of the following would be the most likely impact of an increase in tariffs on imported cars?

The number of imported cars would rise.

The price of imported cars would fall.

The price of domestic cars would rise.

The production of domestic cars would fall.

10.

1 point

Which one of the following statements concerning the Consumer Price Index (CPI) is false?

The CPI can be affected by changes in the value of the Australian dollar.

The CPI does not include changes in the prices of imported products.

The CPI would be affected by changes in the price of commodities, such as oil.

The CPI measures changes in the prices of retail goods and services purchased by metropolitan households.

11.

1 point

In which one of the following market structures is a firm always a price-taker?

monopolistic competition

monopoly

oligopoly

perfect competition