Topic 1
Which international organisation is responsible for maintaining financial stability in global financial markets?
IMF
What is the difference between the current and capital and financial account?
Current has one off transactions, KFA is reversible
How do we calculate real GDP?
Nominal x 100/CPI
National dish of England?
Chicken tikka masala
A developing economy is most likely to be characterised by what:
1) Inadequate access to education and underprovision of public goods
2) Inadequate access to health care and GDP dominated by the provision of services
1
What are 3 Cyclical factors affecting primary income account?
- Exchange rate (value effect debt denominated in foreign currency)
- Domestic and global interest rate
- Business cycle (in upturn, greater profits, more dividends sent overseas)
What is Aggregate supply?
Total level of income in an economy over a period of time. Determined by the quantity and quality of the factors of production
What is the French word for cheese?
Fromage
Which of the following is most likely to allow an infant industry in Australia to benef from globalisation?
(A) An increase in Australia’s import quotas
(B) A decrease in Australia’s levels of protection
(C) A decrease in Australia’s regulation of transnational corporations
(D) An increase in Australia’s recognition of international educational qualifications
D
What is the TWI?
Multi-lateral exchange rate measure showing the value of the AUD against a basket of foreign currencies of our major trading partner
How can AS be increased?
Increases to quantity or quality
What is the capital city of Bhutan?
Thimphu
Australia provides foreign aid to build schools in a developing economy. What account is this entered in the BOP?
Conditional foreign aid - debit in capital account
What are 2 impacts of reduced protection levels on individuals?
- Structural unemployment increases as inefficient firms close
- Consumers gain access to wider variety of goods at lower prices
- Job opportunity increase in internationally competitive
What U/E exists at NAIRU?
Frictional and structural
In Greek mythology, who is the goddess of wisdom and warfare?
Athena
In which circumstance would the IMF be called in to assist a country?
Trade dispute, foreign investment dispute, financial crisis
financial crisis
What is the impact of reduced protection on the government?
- Reduced gov revenue
- Government spending on structural adjustment programs may increase.
What relationship is shown on the Phillips curve?
u/e and inflation
The line "To be or not to be" comes from which Shakespeare play?
Hamlet