Round 1 quiz

Which economic concept is depicted by the Phillips Curve?

• The relationship between interest rates and investment

• The relationship between income and unemployment

• The relationship between inflation and unemployment

• The relationship between taxes and disposable income

If the controversial stage three tax cuts are implemented in Australia, more than 95 per cent of Australians will have a marginal tax rate no greater than:

• • 25 per cent

• • 30 per cent

• • 28 per cent

• • None of the above

The index that measures home prices in the U.S. and that reached a historic peak right before the financial crisis of 2007-08 is called:

• • The Case-Shiller index

• • The Lerner index

• • The Herfindahl-Hirschman index

• • The Consumer Price index

What is the term often applied to economic thinking that is outside the mainstream?

• • Heterodox

• • Orthodox

• Radical

• None of the above

Who said, "The hardest thing in the world to understand is income tax" ?

• Stephen Hawking

• Albert Einstein

• Isaac Newton

• Adam Smith

What is the economic term for the inability of a country to consistently meet its external debt obligations?

• Fiscal Deficit

• Sovereign Default

• Trade imbalance

• Debt Restructuring

Which of the following is a measure of income inequality within a population?

• Lorenz curve

• Phillips curve

• Engel curve

• Gini coefficient

What economic theory suggests that government intervention is necessary to stabilise the economy during economic downturns?

• Classical economics

• Monetarism

• Keynesian economics

• Supply-side economics

What is the term for a tax system where everyone pays the same percentage of their income in taxes?

• Progressive Tax

• Regressive Tax

• Flat Tax

• None of the above

0. What economic concept describes the situation where one party has more information than another

1. party in a transaction, leading to inefficient outcomes?

• Moral hazard

• Adverse selection
  

• Principal-agent problem

• Asymmetric information