15 MCQ on Australia in the World Economy with answers
15 MCQ on Australia in the World Economy with answers
1. Which of the following is Australia's largest export?
a) Minerals and fuels
b) Agricultural products
c) Machinery and transport equipment
d) Services
Answer: a) Minerals and fuels
2. Which major economic sector contributes significantly to Australia's GDP?
a) Agriculture
b) Manufacturing
c) Mining
d) Tourism
Answer: c) Mining
3. Australia is a member of which economic organization?
a) European Union (EU)
b) Organization of Petroleum Exporting Countries (OPEC)
c) World Trade Organization (WTO)
d) Association of Southeast Asian Nations (ASEAN)
Answer: c) World Trade Organization (WTO)
4. What is the primary reason for Australia's heavy reliance on exports?
a) Domestic market saturation
b) Limited natural resources
c) Small domestic market size
d) Government policies restricting imports
Answer: c) Small domestic market size
5. Which country is Australia's largest trading partner?
a) United States
b) China
c) United Kingdom
d) Japan
Answer: b) China
6. Which of the following factors contributes to Australia's vulnerability to global economic fluctuations?
a) Diversified export markets
b) Strong domestic consumption
c) Reliance on commodity exports
d) Limited foreign investments
Answer: c) Reliance on commodity exports
7. How does Australia's geographical location impact its trade relationships?
a) It facilitates easy access to European markets
b) It limits trade opportunities with Asia and the Pacific
c) It provides access to fast-growing Asian markets
d) It isolates Australia from global trade routes
Answer: c) It provides access to fast-growing Asian markets
8. Which economic phenomenon has significantly contributed to Australia's economic growth in recent decades?
a) Trade protectionism
b) Foreign aid
c) Globalization
d) Economic isolationism
Answer: c) Globalization
9. How does Australia's exchange rate regime impact its trade competitiveness?
a) Fixed exchange rates promote export competitiveness
b) Floating exchange rates reduce export competitiveness
c) Managed exchange rates have no impact on trade competitiveness
d) Pegged exchange rates encourage import competitiveness
Answer: b) Floating exchange rates reduce export competitiveness
10. What is the significance of Australia's Free Trade Agreements (FTAs) with various countries?
a) They restrict Australia's access to foreign markets
b) They increase barriers to trade
c) They promote trade liberalization and market access
d) They prioritize protectionist policies
Answer: c) They promote trade liberalization and market access
11. Which economic sector is a major contributor to Australia's service exports?
a) Finance and insurance
b) Mining
c) Agriculture
d) Construction
Answer: a) Finance and insurance
12. How has Australia's immigration policy impacted its economy?
a) It has led to a decline in skilled labor availability
b) It has increased cultural homogeneity
c) It has boosted population growth and labor force participation
d) It has resulted in economic stagnation
Answer: c) It has boosted population growth and labor force participation
13. Which global economic event significantly affected Australia's economy in 2008?
a) Asian Financial Crisis
b) Eurozone Debt Crisis
c) Global Financial Crisis
d) Oil Price Shock
Answer: c) Global Financial Crisis
14. How does Australia's agricultural sector contribute to its trade balance?
a) It primarily imports agricultural products to meet domestic demand
b) It has a trade surplus in agricultural products
c) It relies heavily on agricultural subsidies for exports
d) It has minimal impact on Australia's trade balance
Answer: b) It has a trade surplus in agricultural products
15. What role does foreign direct investment (FDI) play in Australia's economy?
a) It is a major source of revenue for the government
b) It drives innovation and economic growth
c) It increases trade barriers
d) It has no significant impact on Australia's economy
Answer: b) It drives innovation and economic growth
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