Labour Market (Applied)
Employed persons = 9 million
Unemployed persons = 1 million
Persons aged 15 years of age and over = 15 million The underemployment rate = 7.0 per cent
Using data above, the labour force participation rate is closest to:
A. 50%.
B. 56%.
C. 60%.
D. 66%.
D. 66%.
A decrease in Australian business confidence is likely to:
A. strengthen labour market conditions.
B. cause a rise in structural unemployment.
C. decrease job vacancies.
D. increase average hours worked.
C. decrease job vacancies.
Those who favour protectionism usually do not claim that it:
A. lowers inflation.
B. protects jobs and lowers unemployment.
C. helps infant industries to get established and expand.
D. strengthens our self-sufficiency and national security.
A. lowers inflation.
Free trade involves:
A. lower tariffs.
B. reductions in business subsidies.
C. a reduction in import quotas.
D. the complete absence of industry protection and controls on trade.
D. the complete absence of industry protection and controls on trade.
Employed persons = 9 million
Unemployed persons = 1 million
Persons aged 15 years of age and over = 15 million
The underemployment rate = 7.0 per cent
Using data above, the size of the labour force is:
A. is 9 million.
B. is 10 million.
C. is 15 million.
D. cannot be calculated from the data.
B. is 10 million.
Labour shortages in Australia have not been caused by:
A. the global COVID-19 pandemic.
B. a decrease in the average age of the population.
C. tightening government welfare access.
D. an overall lower participation rate.
B. a decrease in the average age of the population.
Examine the following hypothetical statistics for a country.
Exports of goods = $8 million
Imports of goods = $10 million
Exports of services = $5 million
Imports of services = $6 million
Based on this data, the country’s balance on goods and services (BOGS) would be equal to:
A. a surplus of $3 million.
B. a deficit of $2 million.
C. a deficit of $3 million.
D. a surplus of $2 million
C. a deficit of $3 million.
A comparative cost advantage most likely occurs when:
A. a nation is the cheapest producer in the world.
B. a nation is good at making a product.
C. a nation has been producing a product for many years.
D. a nation is relatively most efficient or least inefficient in producing a product.
D. a nation is relatively most efficient or least inefficient in producing a product.
The participation rate is likely to increase if:
A. the unemployment rate increases
B. immigration numbers increase
C. subsidies for child care are reduced
D. the government increases university fees
B. immigration numbers increase.
New aggregate supply conditions involving higher wages and lower labour productivity are most likely to be associated with:
A. cyclical unemployment.
B. structural unemployment.
C. frictional unemployment.
D. hardcore unemployment.
B. structural unemployment.
Regarding Australia’s international trade transactions, which statement is incorrect?
A. Australia is likely to have a comparative cost advantage when trading wool with Japan.
B. Specialisation in selected areas of production usually helps make Australia more internationally competitive and efficient, thus improving our material living standards.
C. Australia mainly exports to countries that produce the same types of goods and services.
D. International trade helps to increase consumer choice
C. Australia mainly exports to countries that produce the same types of goods and services.
In the long-term, which of the following government economic policies would not strengthen the international competitiveness of Australian producers in local and foreign markets?
A. A gradual reduction in tariffs
B. A lower rate of company tax
C. A 10 per cent rise in the minimum award wage
D. A cut in the luxury car tax
C. A 10 per cent rise in the minimum award wage
Which of the following is inaccurate concerning Australia's labour force statistics over recent years?
A. The participation rate has risen and the unemployment rate has fallen
B. Male participation rates have increased faster than female participation rates
C. The labour force underutilization rate for July 2022 was 9.4%, made up of 3.4% unemployment and 6.0% underemployment
D. The unemployment rate fell to a low of 3.4% in the middle of July 2022
B. Male participation rates have increased faster than female participation rates
Normally, which of the following is not a sign of weaker labour market conditions?
A. Reduced job vacancies
B. Increased hours worked as overtime
C. An increased underutilisation rate
D. An increase in the duration of unemployment
B. Increased hours worked as overtime
Concerning Australia’s international trade, which statement is most correct?
A. Australia is likely to have a comparative cost disadvantage in producing iron ore.
B. The USA is Australia’s biggest export customer.
C. Australia imports oil because we do not have sufficient resources.
D. During 2019-21, Australia had a deficit on the BOGS.
C. Australia imports oil because we do not have sufficient resources.
Following trade liberalisation, which of the following government policies would be least likely to help local firms become more internationally competitive against imports?
A. Higher rates of company tax and increased subsidies to local businesses
B. More spending to upgrade national road, rail, water, air and port infrastructure
C. Budget spending on R&D, and the lifting of the minimum school leaving age
D. Changes to the wage fixing system where pay rises are closely linked with better worker productivity and conditions of demand and supply of labour
A. Higher rates of company tax and increased subsidies to local businesses
Employed persons = 9 million
Unemployed persons = 1 million
Persons aged 15 years of age and over = 15 million
The underemployment rate = 7.0 per cent
Using data above, the labour force underutilisation rate is closest to:
A. 7.0 per cent.
B. 10.0 per cent.
C. 17.0 per cent.
D. 20 per cent.
C. 17.0 per cent.
If Chinese economic activity rose strongly, which of the following impacts on Australia’s labour market is unlikely?
A. Australia’s rate of cyclical unemployment is likely to fall.
B. Australia’s GDP is likely to rise.
C. Australian firms are likely to buy more resources.
D. The Australian government is likely to outlay more on welfare benefits.
D. The Australian government is likely to outlay more on welfare benefits.
As part of its policy of trade liberalisation over the last 50 years, the Australian government has generally:
A. abolished all import duties but overall increased its subsidies to businesses to around $50 billion per year.
B. greatly lowered general manufacturing tariffs to a general rate of less than 1 per cent and abolished import quotas.
C. entered into only two bilateral free trade agreements.
D. increased protection of local manufacturing businesses so as to keep jobs.
B. greatly lowered general manufacturing tariffs to a general rate of less than 1 per cent and abolished import quotas.
Concerning the exchange rate for the A$, which statement is least correct?
A. A rise in the value of the A$ against the US$ would make our exports more attractive to US buyers.
B. A rise in the value of the A$ against other currencies could be caused by an increase in our sales of exports due to stronger economic activity abroad.
C. Stronger levels of consumer confidence in Australia can lead to an increase in imports and a weaker A$.
D. The value of the A$ is determined in the foreign exchange market by the number of buyers of the A$, relative to the number of sellers.
A. A rise in the value of the A$ against the US$ would make our exports more attractive to US buyers.