WHSS Commerce Marathon: Economics Week 1

It was reported in 2011 that the United States (US) needed to achieve a lower current account deficit. What would help this in the short run?

A a protectionist policy

B a strong exchange rate

C increased private sector spending

D investment in the US by multinational firms

• A

• B

• C

• D

The table shows the number of units of foreign currency that the UK pound (UK£) could buy in August 2012 and August 2013. What can be concluded from the table about the change in currency values between 2012 and 2013?

A The Argentine peso appreciated against the UK pound.

B The Argentine peso depreciated against the euro.

C The euro depreciated against the UK pound.

D The South African rand appreciated against the euro.

• A

• B

• C

• D

What is a benefit of tariffs?

A increased choice

B increased government revenue

C more competition

D more trade

• A

• B

• C

• D

Malaysia decides to put more of its resources into the production of rubber, because it can produce rubber more efficiently than the rest of the world. This means that Malaysia will combine the benefits from

A comparative advantage and diversification.

B comparative advantage and specialisation.

C competition and diversification.

D specialisation and protection.

• A

• B

• C

• D

What will reduce the volume of international trade in the world economy?

A a Dutch bank making a loan to a Taiwanese manufacturer

B a Japanese electronics firm establishing a subsidiary in the UK

C the Swedish government granting foreign aid to Somalia

D the US government introducing quotas for European steel products

• A

• B

• C

• D

The table shows the number of Jamaican dollars (J$) which are exchanged for one unit of other currencies in June and July 2001. Against which currency did the Jamaican dollar depreciate? A US $ B UK £ C Guyana $ D Barbados $

• A

• B

• C

• D

Which of the following would cause a favourable change in the UK trade in services (invisible) account?

A A Malaysian company increases its exports to the UK.

B A Japanese company invests in a subsidiary in the UK.

C A large UK company increases its exports of goods.

D A UK company wins a contract to transport South African exports.

• A

• B

• C

• D

What encourages international specialisation?

A diseconomies of scale

B foreign exchange

C free trade

D quotas

• A

• B

• C

• D

What is an effect of trade protection?

A It encourages home industries to be more efficient.

B It increases the demand for home-produced goods.

C It reduces the price of home-produced goods.

D It reduces the price of imports

• A

• B

• C

• D

What is not a main economic government objective?

A a balance of payments deficit

B economic growth

C full employment

D price stability

• A

• B

• C

• D