Unit 2 Economics - AOS 3 - Lesson 1

Which of the following goods represents the greatest percentage of Australian export income?

• Meat

• Precious metals and gems

• Mineral ore

• Mineral fuels (including oil)

Which of the following options is not an important reason for pursuing international trade?

• Contribution of exports to Australia’s GDP

• Contribution of exports to Australia’s national income

• Contribution of exports to Australia’s employment

• Contribution of imports to Australia's GDP

Which of the following outcomes occurs when debits are less than credits in the balance on good and services account?

• A surplus

• A deficit

• A balance

What best describes the foreign exchange market?

• A place where buyers and sellers meet to negotiate the price of goods and services.

• Duty free shopping at an international airport.

• Where buyers and sellers of

  each currency decide the price of it.

• Where international traders meet make business deals on imports/ exports.

How is the exchange rate determined?

• The forces of demand and supply.

• The government setting the exchange rate themselves.

• The RBA setting the cash rate.

• Through policies set in the Federal budget.

What is international trade?

• Shielding of local businesses from strong international competition.

• The importing and exporting of goods and services between nations.

• The swapping of goods and services between different countries.

• Allowingnations to trade goods and services freely.