Intro to macroeconomics
Economic growth
Random #1
Inflation
Unemployment
Random #2
Business cycle
Income distribution
Government intervention
Random #3
100
State the term used for the study of the economy as a whole.
*Double points: state the term for the study of individual consumers, businesses and markets.
Macroeconomics
*Microeconomics
100
Which measure of GDP removes the effect of changing prices?
*Double points: which measure values production using current prices?
Real GDP
*Nominal GDP
100
Name the snowman in Frozen.
Olaf
100
Which organisation calculates Australia’s Consumer Price Index?
*Double points: how frequently is Australia’s CPI traditionally calculated and published?
Australian Bureau of Statistics
*quarterly
100
Which two groups make up the labour force?
Employed and unemployed people
100
How many ghosts chase Ms Pac-Man at the start of each game?
4
100
What are the two main phases of the business cycle?
*Double points: name the two turning points separating these phases.
Expansion and contraction
*Peak and trough
100
Is income measured as a stock or a flow?
*Double points: name two forms of income other than wages.
Flow
*Rent, interest, dividends or profit
100
Name Australia’s largest source of Commonwealth tax revenue.
*Double points: classify it.
Personal income tax.
*Direct tax & progressive
100
State the breed of dog represented by Bluey.
Blue heeler
200
Name the five sectors included in the five-sector circular flow model.
*Double points: identify the sector connecting savers with borrowers.
Household - Business - Financial - Government - Overseas
*Financial sector
200
What two factors can cause nominal GDP to increase?
Increased production and increased prices
200
Name the nation in which The Hunger Games is set.
Panem
200
What is the main difference between headline inflation and underlying inflation?
*Double points: name one measure of underlying inflation used in Australia.
Underlying inflation reduces the influence of unusually volatile or temporary price movements.
*trimmed mean or weighted median
200
What is the term for employed people who want and are available to work more hours?
Underemployed
200
Name the country in which Machu Picchu is located.
Peru
200
Around what does actual real GDP fluctuate in the business-cycle model?
*Double points: why does this trend generally slope upwards?
Potential GDP
*Productive capacity increases over time.
200
What calculation is used to determine net wealth?
Total assets minus total liabilities
200
Which level of government employs the most public-sector workers?
State / territory governments
200
Name the five-letter English word that becomes “shorter” when two letters are added to it.
Short
300
State the three leakages from the circular flow.
*Double points: state the three injections from the circular flow.
Savings, taxation and imports
*Investment, government spending and exports
300
Which model demonstrates the maximum combinations of two categories of goods and services an economy can produce?
Production Possibility Frontier (PPF)
300
What is the term for a word that means the opposite of another word?
Antonym
300
What is the name given to the representative collection of goods and services used by the ABS to measure changes in Australian consumer prices?
*Double points: How many major groups are included in this?
The CPI basket
*11 groups
300
Which type of unemployment occurs when workers are temporarily moving between jobs?
Frictional unemployment
300
In which country was the ancient Library of Alexandria located?
*Double points: how was it lost to history?
Egypt
*Fire
300
During which phase are employment, incomes and consumer spending generally increasing?
*Double points: what generally happens to business inventories during this phase?
Expansion
*They fall as sales rise
300
What does the horizontal axis of a Lorenz curve measure?
*Double points: what does the vertical axis measure?
Cumulative percentage of households (or population)
*Cumulative percentage of income or wealth
300
What two factors determine the distribution of GST revenue between the states and territories?
*Double points: how often is this distribution reassessed?
1. population (pressure on services)
2. state revenue
*Annually
300
Name all four Hogwarts houses.
Gryffindor - Hufflepuff - Ravenclaw - Slytherin
400
What is the term for the process where an initial increase in spending causes a larger final increase in equilibrium income?
The multiplier effect
400
What variables are shown on the axes of an Aggregate Production Function?
*Double points: what does an upward shift of the APF represent?
Horizontal axis = labour
Vertical axis = potential real GDP
*increased productivity or productive capacity
400
A group of what wise birds is called a parliament?
Owls
400
What type of inflation occurs when total spending grows faster than the economy’s productive capacity?
Demand-pull inflation
400
Which type of unemployment results from a mismatch between workers’ skills and available jobs?
*Double points: which type of unemployment increases during a contraction in the business cycle?
Structural unemployment
*Cyclical unemployment
400
What is the only number that can not be represented in Roman numerals?
Zero
400
What is the name of an indicator that changes before the overall economy changes?
Leading indicator
400
What measure compares the share of total income received by the highest-income quintile with the share received by the lowest-income quintile?
Income inequality ratio
400
Which level of government collects each of the following:
1. personal income tax
2. payroll tax
3. council rates
4. mining royalties
1. Commonwealth
2. State
3. Local
4. State
400
What country has the highest number of active military personnel per capita in the world?
North Korea
500
If injections exceed leakages, what happens to business inventories before firms adjust production?
Inventories unexpectedly fall.
500
In 2023–24, Australian real GDP grew by approximately 1.4%, while real GDP per capita fell by approximately 1%. What does this reveal?
Population grew faster than real GDP.
500
What is the name of the process by which plants lose water through their leaves?
Transpiration
500
What type of inflation occurs when rising production costs cause the general price level to increase?
Cost-push inflation
500
What variables are shown on the axes of a Phillips Curve?
Vertical axis = inflation
Horizontal axis = unemployment
500
What is an angle less than 90° called?
An acute angle
500
Why is the unemployment rate classified as a lagging indicator of the business cycle?
Businesses usually wait for a sustained change in demand before hiring or dismissing workers.
500
The lowest three quintiles receive 4%, 9% and 16% of total income respectively. What cumulative percentage should be plotted at 60% of households?
*Double points: under perfect equality, what cumulative share would the lowest 60% receive?
29%
*60%
500
Which tax is imposed on selected goods produced within Australia, including alcohol, tobacco and fuel?
*Double points: which related tax is imposed on selected goods entering Australia?
Excise duty
*Customs duty
500
In science, what does a hypothesis become once it has been rigorously tested and verified?
A scientific theory
600
What is the approach used to calculate GDP by adding all types of spending on final goods and services by the four major sectors of the economy.
*Double points: state the equation
Expenditure approach
*C + I + G + (X - M)
600
What occurs when an economy moves from a point inside its existing PPF to a point on the frontier?
Economic growth
600
What word is formed from the ancient Greek words for "star" and "sailor"?
Astronaut
600
What term describes a fall in the inflation rate when the general price level is still increasing?
Disinflation
600
Why might the unemployment rate fall without any increase in employment?
Unemployed people may stop looking for work and leave the labour force.
600
What mode of transport can also be a part of a wedding dress?
Train
600
Real GDP is still falling, but building approvals, job advertisements and consumer confidence are rising. Which phase of the business cycle is occurring?
Trough
600
What two reasons is Australia’s disposable-income distribution more equal than its private-income distribution?
Progressive taxation and cash transfer payments redistribute income.
600
Approximately what percentage of Commonwealth Government revenue came from taxation in 2025–26?
*Double points: name two sources of non-tax revenue.
92%
*Dividends, fees, charges or interest
600
What is the indigenous religion of Japan?
Shinto
700
Suppose that firms spend $500 million on new capital equipment. Of this, $300 million was spent on domestically produced equipment and $200 million was spent on imported equipment. All else equal, how much does this transaction contribute to GDP?
$300 million
700
Which three broad changes can shift the Aggregate Production Function upwards?
Capital deepening, improved workforce skills and technological improvements
700
What subspecies of tiger is also the name of a bay in the Indian Ocean?
Bengal
700
Why are people who are receiving fixed nominal incomes particularly disadvantaged by unexpected inflation?
Their income does not rise with prices, so its purchasing power falls.
700
What does a negative GDP gap indicate about actual GDP and potential GDP?
Actual GDP is below potential GDP.
700
What is the name of the theory suggesting the universe began from a single point?
The Big Bang Theory
700
What term describes actual GDP exceeding potential GDP?
Positive output gap
700
Which of the following is an economic cost of a rise in the Gini coefficient?
a) an increase in economic growth
b) an increase in the mobility of labour
c) an increase in risk-taking by entrepreneurs
d) an increase in government welfare support
d) an increase in government welfare support
700
Explain why the GST is proportional to taxable expenditure but regressive in relation to income.
The same 10% rate applies to spending, but lower-income households spend a larger proportion of their income.
700
What musical instrument are Steinway and Sons most famous for making?
Piano
800
Which of the following would likely lead to an increase in consumption?
a) a fall in disposable income
b) a rise in interest rates
c) a fall in income tax rates
d) a rise in the exchange rate
c) a fall in income tax rates
800
Country A records real GDP growth of 4% and population growth of 5%. Country B records real GDP growth of 2.5% and population growth of 1%.
Which country experienced the stronger improvement in average material living standards?
Country B: real GDP per capita rose by approximately 1.5%, while Country A’s fell by approximately 1%.
800
What empire did Greece gain its independence from in 1830?
Ottoman Empire
800
What is the term for an economy experiencing high inflation, weak or negative economic growth, and high unemployment at the same time?
*Double points: Which type of inflation is most commonly associated with this?
Stagflation
*Cost-push inflation
800
What is likely to happen to inflation if unemployment remains below the NAIRU for an extended period?
Inflation is likely to accelerate as labour shortages increase wage pressure and costs.
800
What does RSVP stand for?
Répondez s'il vous plaît
800
Which of the following would be considered leading economic indicators?
i. Share prices
ii. Inflation rate
iii. Unemployment rate
iv. Building permits
i. Share prices
iv. Building permits
800
A country’s Lorenz curve moves closer to the line of perfect equality. What happens to its Gini coefficient, and what does this reveal about the distribution?
The Gini coefficient decreases, showing that income or wealth has become more equally distributed.
800
Identify the four government macroeconomic objectives.
Price stability - Full employment - Sustainable growth - Income redistribution
800
What Italian fashion designer was killed by an obsessive fan in Miami Beach in 1997?
Gianni Versace