Topic 3 Quiz

Classical economic theorists believe that the market would be controlled by

• the dynamic lever

• the spirit level

• the invisible hand

• the central bank

In interventionist economics, who should intervene in the economy to insure the best use of economic resources?

• CEO of the company

• Banks

• Insurance companies

• Governments

Advocates of monetarism support a free market with little government intervention. What policy do they think government should intervene in?

• Monetary policy

• Foreign policy

• Domestic policy

• Legislative policy

GDP (gross domestic product) is measure of the total value of production of goods and services over what period of time?

• One week

• One month

• A quarter (three months)

• One year

Which of the following is a financial measure of an economy?

• Quality of life

• Environmental conservation

• Health and education outcomes

• Inflation levels

An unemployed person is defined as (multiple answers)

• not employed

• taking active steps to find work

• available to start work

• aged 15 years or over

Which of the following does NOT happen when high employment levels are present in an economy?

• Income tax revenue falls as a result of fewer people earning income

• Government expenses decrease

• Decreased rates of crime, family breakdown and regional decay

• Individuals have the opportunity to change jobs whenever they choose

Australia's current unemployment rate is about

• 1%

• 4%

• 10%

• 20%

What type of unemployment occurs when the economy is in a period of downturn?

• Frictional

• Cyclical

• Structural

• Seasonal

What type of unemployment occurs when students move from education into the workforce full time?

• Frictional

• Cyclical

• Structural

• Seasonal