08/06/2023, 15:31
Quiz 5: BUSS1040 Economics for Business Decision Making
Quiz 5
Due May 31 at 16:00
Points 10
Available until May 31 at 16:00
Questions 10
Time Limit None
Instructions
Dear students,
The fifth (last) quiz is now open. You have one week to finish it. The deadline is 4.00 pm, 31/05/2023
(Wednesday).
Please remember that you have one attempt only. That is, you can move back and forth between
questions and change your answers, but you can only submit your answers once. Be very careful
to only submit your answers when you are satisfied with them! Unfortunately, Canvas does not allow
us to clear any accidental attempts -- it is simply not possible, we cannot do it.
Please note that late submissions cannot be accepted due to the structure of learning in this unit
of study. There is a lot of material to be covered in a short semester, so in order to help you keep the
pace, the correct answers will be revealed shortly after this deadline.
You cannot discuss quiz questions on Ed or during the consultation hours when the quiz is still
running. If you think there is a mistake in the question, please email huy.vu@sydney.edu.au
(mailto:huy.vu@sydney.edu.au)
Please allow enough time for working on the quiz. Remember 4 best of 5 quizzes count towards 10%
of your final grades.
Good luck!
BUSS1040 teaching team
This quiz was locked May 31 at 16:00.
Attempt History
LATEST
Attempt
Time
Score
Attempt 1
30 minutes
7 out of 10
Score for this quiz: 7 out of 10
Submitted May 31 at 15:48
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Quiz 5: BUSS1040 Economics for Business Decision Making
This attempt took 30 minutes.
1 / 1 pts
Question 1
All else equal, if an employed worker retires from their job:
Correct!
The unemployment rate rises and the labour force participation rate falls
The unemployment rate rises and the labour force participation rate
rises
The unemployment rate falls and the labour force participation rate falls
The unemployment rate falls and the labour force participation rate rises
Not enough information to answer the question
1 / 1 pts
Question 2
The following table provides the data for nominal and real GDP in
million dollars for the country of Zambonia.
Nominal GDP ($)
Real GDP ($)
2022
12123
11959
2023
13029
12206
The inflation rate in Zambonia between 2022 and 2023 is given by:
Correct!
5.3 percent
7.5 percent
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Quiz 5: BUSS1040 Economics for Business Decision Making
2.1 percent
9.5 percent
-2.2 percent
Question 3
1 / 1 pts
Consider a 4-sector economy, the consumption spending is C =
1000+0.75(Y-T), taxes are T = 50 + 0.25Y, and imports are M=0.3Y.
Planned investment is Ip=300, government spending is G=250, and
exports are X=40. What is the slope of the planned aggregate
expenditure (PAE) line?
Correct!
0.2625
0.275
0.2
0.8625
0.6375
Question 4
1 / 1 pts
If nominal GDP is rising and the general level of prices is falling, then:
Correct!
real GDP is rising faster than nominal GDP
real GDP is rising slower than nominal GDP
real GDP is falling more slowly than the price level
real GDP is falling faster than the price level
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Quiz 5: BUSS1040 Economics for Business Decision Making
insufficient information
1 / 1 pts
Question 5
Consider the following hypothetical tax schedule, expressed in nominal
terms, for the tax year 2021-22.
Family income
Marginal tax rate
<=$20 000
0
$20 001-$30000
10
$30 001-$50 000
15
>$50 000
20
Assuming the CPI is 110 in 2021-22 and 125 in 2022-23, but the
government does not adjust the tax schedule for tax year 2022-23, what
is the average tax rate in 2022-23 for a household earning $48,000 in
2021-22, assuming their nominal income goes up with inflation?
Correct!
9%
10%
8%
14%
7%
Question 6
0 / 1 pts
In the following scenario, identify the correct sequence of events. If
there is a $1 increase in autonomous spending, the equilibrium output
increases by more than $1. This is because, an increase in spending
leads to
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Quiz 5: BUSS1040 Economics for Business Decision Making
orrect Answer
run down in inventories, increase in production, more income, more
spending
accumulation of inventories, decrease in production, more income, more
spending
more output, change in planned investment and consumption
higher spending, higher consumption
ou Answered
higher income, higher planned investment
Question 7
0 / 1 pts
If potential output equals 8000 and short-run equilibrium output equals
9700, there is a(n) ______ gap and the Reserve Bank must _____ real
interest rates in order to close the gap.
orrect Answer
expansionary; raise
ou Answered
expansionary; lower
expansionary; not change
contractionary; raise
contractionary; lower
Question 8
1 / 1 pts
An increase in inflation expectations
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Quiz 5: BUSS1040 Economics for Business Decision Making
Correct!
shifts the Phillips Curve up, so that a given level of unemployment
corresponds to a higher level of inflation
shifts the Phillips Curve down, so that a given level of unemployment
corresponds to a lower level of inflation
shifts the Phillips Curve to the right, so that a given level of inflation
corresponds to a lower level of unemployment
shifts the Phillips Curve to the left, so that a given level of inflation
corresponds to a lower level of unemployment
none of the other answers is correct.
Question 9
1 / 1 pts
Suppose the total expenditure for a market basket of goods in year 1
(the base year) is $190 billion. In year 2 the expenditure for the same
market basket of goods is $210 billion. What is the CPI for the economy
in year 2?
Correct!
111
120
109
210
90
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Quiz 5: BUSS1040 Economics for Business Decision Making
Question 10
0 / 1 pts
In the news, the claim is that the Australian economy is experiencing an
expansionary output gap of 2 percent. If the Okun’s law coefficient, β=2,
what is the unemployment gap (u-u*), where u is the unemployment
rate and u* is the natural rate of unemployment:
orrect Answer
-1%
1%
ou Answered
4%
-4%
-2%
Quiz Score: 7 out of 10
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