Topic 1
What are the 5 drivers of globalisation
Trade in g/s, financial flows, investment and TNCs, Tech/transport/comm, International division of labour
Unconditional foreign aid is a part of which component of the BOP?
NSY in Current Account
What are the 3 main types of U/E affecting Aus?
Cyclical, structural, underemployment
What is productivity a measure of?
A measure of how efficiently inputs are used to produce outputs
What is the national sport of Japan?
Sumo Wrestling
What is the role of the WTO?
To implement and advance global market trade agreements and to resolve trade disputes between economies
What happens to export prices when there is an improvement in the ToT?
What is market failure?
Occurs when the price mechanism fails to take into consideration social costs and benefits of production
What are the 3 methods to finance a deficit?
Borrow from private sector
Borrowing from RBA: Quantitative easing
Borrow overseas
10,080
A monetary union is a group of countries that share a common currency or have their exchange rates fixed to one another's currencies. A trading bloc is a group of countries that have agreed to reduce or eliminate trade barriers (such as tariffs and quotas) among themselves to facilitate the free flow of goods and services.
How does the Floating exchange rate system work?
When a currency's exchange rate is determined by the free interaction of supply and demand in international forex markets.
Why is the underlying inflation rate better measure of inflation?
Removes one off volatile changes.
What is an automatic stabiliser and what are the 2 examples?
Policy instruments in the Gov. budget which counterbalance economic activity. Welfare payments and progressive tax.
What is the 4th letter of the Greek alphabet?
Delta
What measures are included in the calculation of the HDI?
Life expectancy, years of schooling, GNI/capita
What are the 3 structural reasons for our CAD?
Narrow export base, low households savings, lack of infrastructure
What is a free rider?
An individual who does not to join a group representing his or her interests yet receives the benefit of the group's influence.
What is the difference between regulations and market based policies?
The difference between regulations and market-based policies is that regulations impose direct rules or standards for behavior, while market-based policies use economic incentives, such as taxes or tradable permits, to influence behavior and achieve policy goals.
On what continent would you find the city of Baku?
Asia
What is a disadvantage of Bilateral trade agreements?
Trade diversion
What does the RBA do appreciate the AUD?
Purchase AUD
When/how is external stability achieved?
1. Export income is enough to finance import expenditure
2. The servicing costs of AUS foreign liabilities are met
3. Exchange rate is relatively stable over time
What are the 4 conflicts between policies/economic objectives?
Price stability and U/E
Eco growth and external stability
Microeconomic policies, Full employment, DOI
Eco Growth and environment
Which country features a shipwreck on its national flag?
Bermuda